Xinming China Holdings Limited (2699) AI Stock Analysis

• Market Cap: HK$22.17M
• Dividend Yield: N/A
• Average Volume (3M): 7.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.50 ▲(108.33% Upside)

The overall stock score is heavily influenced by the company's poor financial performance and negative valuation metrics. Technical analysis also indicates bearish momentum, further contributing to the low score. The lack of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Cash Generation Ability

Improved operating cash flow indicates the company is enhancing its ability to generate cash from core operations, which is crucial for sustaining business activities and funding future growth.

Strategic Partnerships

Collaborations with local governments and developers can provide access to new projects and markets, potentially improving revenue streams and competitive positioning.

Urbanization Trends

Urbanization in China could drive demand for real estate, offering long-term growth opportunities for Xinming China Holdings in residential and commercial property development.

Negative Factors

Revenue Decline

A sharp decline in revenue indicates challenges in maintaining sales momentum, which can impact profitability and market share over the long term.

High Leverage

High leverage and negative equity suggest financial distress, limiting the company's ability to invest in growth and increasing the risk of insolvency.

Profitability Challenges

Persistent losses highlight operational inefficiencies and cost management issues, which can hinder long-term financial health and competitiveness.

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

Xinming China Holdings Limited is facing significant financial challenges, with declining revenues, persistent losses, and a highly leveraged balance sheet. Despite some improvements in cash flow, the financial statements indicate substantial risks and potential insolvency concerns.

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: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 0.24 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.31, and below the 200-day MA of 1.42, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 24.39 is Positive, neither overbought nor oversold. The STOCH value of 31.63 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%
3366	48 Neutral	HK$217.03M	-1.39	―	―	-62.34%	70.06%
0185	43 Neutral	HK$229.61M	-0.17	-157.74%	―	-14.64%	69.18%
6968	41 Neutral	HK$120.01M	-0.13	-26.32%	―	-70.72%	-667.17%
3639	41 Neutral	HK$124.03M	-0.04	-35.96%	―	-5.63%	-36.30%
1996	39 Underperform	HK$132.60M	-0.02	-1347.47%	―	-59.30%	19.71%
2699	39 Underperform	HK$22.17M	-0.02	―	―	-84.06%	60.63%

Xinming China Holdings Limited Corporate Events

Xinming China Holdings Implements Measures to Improve Financial Stability

Xinming China Holdings Limited has taken significant steps to address the disclaimer of opinion in its 2024 Annual Report by negotiating with lenders to extend repayment schedules and reduce immediate financial burdens. The company has successfully completed a Rights Issue, raising approximately HK$78.3 million, which has been partially used to repay debts and improve financial stability, with ongoing efforts to secure additional financing to enhance its financial position.

Xinming China Holdings Addresses Unusual Share Movements

Xinming China Holdings Limited, a company incorporated in the Cayman Islands, has observed unusual price and trading volume movements in its shares. The company’s board has conducted inquiries and found no specific reason for these fluctuations, nor any undisclosed information that would impact the market. The company assures that its business operations and financial position remain stable, advising shareholders and potential investors to exercise caution.