Xinming China Holdings Limited (2699) AI Stock Analysis

• Market Cap: HK$22.45M
• Dividend Yield: N/A
• Average Volume (3M): 7.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -84.06%
• EPS Growth: 60.63%
• Country: HK
• Employees: 50
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -1.56
• Shares Outstanding: 93,931,100
• 10 Day Avg. Volume: 3,415,000
• 30 Day Avg. Volume: 7,578,381
• PEG Ratio: -1.18
• Price to Book (P/B): -0.71
• Price to Sales (P/S): 26.41
• P/FCF Ratio: 34.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.21 ▼(-2.73% Downside)

The score is driven primarily by severe financial weakness (persistent losses and negative equity) and a bearish technical setup (price below all key moving averages with negative MACD). Valuation does not provide support due to negative earnings and no stated dividend yield.

Positive Factors

Recurring rental income

A core rental business creates recurring cash inflows that smooth revenue volatility from sporadic property sales. Steady rental income supports ongoing operating needs, debt servicing and reinvestment capacity, providing durable cash generation over multi-month horizons.

Improved operating cash flow

Improving operating cash flow despite net losses indicates the company can extract cash from core property operations. That enhances short-to-medium term liquidity, helps meet obligations and fund projects without immediate recourse to dilutive financing, easing distress risk if sustained.

Access to JV and partner funding

A strategy of joint ventures and partnerships can expand project funding and market reach while sharing execution risk. Durable partnerships reduce capital intensity for development, enable pipeline continuation amid balance-sheet weakness, and improve access to local expertise and financing.

Negative Factors

Negative shareholders' equity

Negative equity signals insolvency-style balance sheet strain, limiting borrowing capacity and increasing creditor pressure. This structural weakness raises refinancing and solvency risk, constrains growth and may force asset sales or restructuring absent durable profit recovery.

Persistent losses and revenue decline

Sustained revenue declines and repeated net losses erode retained capital and undermine the business model. Over months this reduces ability to fund developments, maintain assets, and attract partners, making recovery dependent on material operational turnaround or external capital.

Negative margins and prior negative free cash flow

Persistently negative or thin margins and historical negative free cash flow point to structural cost or pricing issues. Without sustained margin improvement, the firm will require recurring external funding to cover investments and debt, increasing dilution or default risk over the medium term.

Xinming China Holdings Limited Business Overview & Revenue Model

Company Description

Xinming China Holdings Limited, an investment holding company, operates as an integrated residential and commercial property developer in the People's Republic of China. The company operates through three segments: Property Development, Property Leasing, and Others. It develops residential units and ancillary facilities, including mid-rise apartments, high-rise apartments, and townhouses, as well as street-level retail outlets and other facilities, such as clubhouses and swimming pools. The company also invests in and leases commercial properties; and provides property management services to the owners of residential properties. As of December 31, 2021, it leased out an area of approximately 136,273.82 square meters. The company was incorporated in 2014 and is based in Hangzhou, China.

How the Company Makes Money

Xinming China Holdings Limited generates revenue primarily through its property investment and development activities. The company earns money by leasing out residential and commercial properties, collecting rental income that provides a steady cash flow. Additionally, it profits from the sale of developed properties, where potential appreciation in property value contributes to significant revenue during peak market conditions. The company may also engage in joint ventures or partnerships with local developers and financial institutions, which can enhance its project funding and market reach. Overall, the combination of rental income, property sales, and strategic partnerships forms the core of its revenue model.

Xinming China Holdings Limited Financial Statement Overview

Summary

Very weak fundamentals: revenue declined materially, profitability remains negative (net income and margins), and the balance sheet shows negative shareholders’ equity and heavy leverage, indicating elevated financial distress risk. Operating cash flow improved, but prior negative free cash flow and ongoing losses keep overall financial quality near the low end.

Income Statement

Xinming China Holdings Limited has experienced significant revenue volatility with a notable decline in total revenue from 2023 to 2024. The company has consistently reported negative net income, indicating ongoing profitability challenges. Gross profit margins have been negative or low, and EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The company exhibits a highly leveraged balance sheet with a negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt relative to assets suggests significant financial risk. The equity ratio is negative, further highlighting the company's insolvency issues.

Cash Flow

Cash flow analysis shows some improvement in operating cash flow in 2024 compared to 2023, but the company has faced negative free cash flow in previous years. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio remains concerning due to ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.29M	86.84M	422.58M	35.20M	101.83M	128.54M
Gross Profit	-60.51M	7.92M	-73.07M	20.01M	77.62M	61.56M
EBITDA	-25.02M	-110.35M	-113.48M	-648.17M	-11.88M	-645.07M
Net Income	-344.45M	-542.52M	-526.12M	-2.25B	-863.93M	-1.00B
Balance Sheet
Total Assets	2.12B	2.14B	2.22B	2.63B	5.22B	6.42B
Cash, Cash Equivalents and Short-Term Investments	1.37M	41.65M	36.29M	56.37M	20.22M	5.25M
Total Debt	1.49B	1.49B	1.55B	1.59B	1.85B	2.23B
Total Liabilities	5.82B	5.69B	5.18B	5.06B	5.20B	5.56B
Stockholders Equity	-3.38B	-3.24B	-2.76B	-2.23B	20.52M	884.45M
Cash Flow
Free Cash Flow	66.81M	66.08M	-84.27M	-1.68M	166.86M	-225.50M
Operating Cash Flow	66.81M	66.08M	-84.27M	-1.68M	166.88M	-225.48M
Investing Cash Flow	-15.00K	6.00K	178.00K	53.00K	-248.00K	303.00K
Financing Cash Flow	-66.76M	-66.76M	77.99M	-11.16M	-151.66M	48.20M

Xinming China Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2699, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.25, and below the 200-day MA of 1.30, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2699.

Xinming China Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0185	44 Neutral	HK$248.74M	-0.21	-157.74%	―	-14.64%	69.18%
3639	44 Neutral	HK$175.71M	-0.06	-35.96%	―	-5.63%	-36.30%
3366	44 Neutral	HK$265.67M	-1.68	―	―	-62.34%	70.06%
6968	42 Neutral	HK$137.85M	-0.13	-26.32%	―	-70.72%	-667.17%
2699	40 Underperform	HK$22.45M	-0.02	―	―	-84.06%	60.63%
1996	39 Underperform	HK$112.71M	-0.02	-1347.47%	―	-59.30%	19.71%

Xinming China Holdings Limited Corporate Events

Xinming China Moves to Ease Liquidity Strain and Tackle Audit Disclaimer

Xinming China Holdings Limited has outlined a series of measures taken since the publication of its 2024 annual report to address a disclaimer of opinion from its auditors, primarily by easing liquidity pressure and stabilising its capital structure. The company has negotiated with existing lenders to renew or extend repayment schedules for overdue borrowings, partially repaid about HK$72 million in debt and interest using proceeds from a rights issue, secured a waiver of roughly HK$14 million in interest, and obtained an agreement from the holder of its convertible bonds not to demand repayment until 1 January 2027, which collectively reduces its immediate financial burden. In parallel, Xinming completed a rights issue of 75,144,880 shares at HK$1.12 per share, raising approximately HK$84.2 million in gross proceeds (HK$78.3 million net), all of which has now been fully applied toward settling convertible bonds, bank loans, other borrowings, payables, and general working capital, with management continuing to engage lenders and potential investors to secure additional financing and further improve its financial position.

The most recent analyst rating on (HK:2699) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on Xinming China Holdings Limited stock, see the HK:2699 Stock Forecast page.