Zhongliang Holdings Group Company Limited (2772) AI Stock Analysis

• Market Cap: HK$311.26M
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.08
• Revenue Growth: -63.41%
• EPS Growth: 77.97%
• Country: HK
• Employees: 2,150
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.20
• Shares Outstanding: 4,446,509,000
• 10 Day Avg. Volume: 2,277,050
• 30 Day Avg. Volume: 1,562,166
• PEG Ratio: <0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.00958
• P/FCF Ratio: -0.14
• 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: 44 Neutral
• Price Target: HK$0.07 ▲(16.67% Upside)

The score is primarily weighed down by weak financial performance—persistent losses, negative operating/free cash flow, and high leverage. Technical indicators are only mildly supportive in the near term and do not offset the broader downtrend signals, while valuation is difficult to support due to negative earnings and no stated dividend yield.

Positive Factors

Liquidity buffer from cash holdings

Having a stated cash and equivalents buffer supports operational continuity and project execution over months. For a developer facing cyclical sales, cash reserves provide runway to complete projects, meet short-term obligations, and avoid fire-sale asset disposals while seeking longer-term capital solutions.

Diversified development footprint

A portfolio spanning residential, commercial and urban redevelopment reduces single-segment exposure and can smooth revenue cycles. Structural diversification helps maintain demand across market segments, supports long-term pipeline visibility, and allows asset reallocation toward higher-return projects over multiple quarters.

Pre-sales and recurring income mix

A business model that combines pre-sales (upfront cash), leasing and management (recurring income) can stabilize cash conversion and margins over time. This mix supports staged funding of developments and creates longer-term earnings potential beyond one-off project sales, aiding sustainable revenue streams.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flow undermine the firm's ability to self-fund development and meet obligations without external capital. Over months this forces reliance on new debt, asset disposals, or equity, which can dilute returns, constrain project starts, and increase execution risk across the portfolio.

High leverage and weakening equity ratio

Elevated debt relative to equity raises refinancing and solvency risk over time, particularly for a developer with cash burn. Higher leverage reduces financial flexibility, increases fixed obligations, and limits ability to bid for land or invest in new projects without improving profitability or securing stable capital sources.

Steep revenue decline and persistent losses

A sharp revenue drop and multi-year net losses erode scale economics and weaken negotiating power with suppliers and financiers. Persisting losses constrain reinvestment, reduce margins through fixed-cost absorption, and make it harder to restore investor and lender confidence over a multi-quarter horizon.

Zhongliang Holdings Group Company Limited Business Overview & Revenue Model

Company Description

Zhongliang Holdings Group Company Limited develops real estate properties in the People's Republic of China. The company develops, operates, and manages commercial properties under the Zhongliang brand. It also provides management consulting services. The company was founded in 1993 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Zhongliang Holdings generates revenue primarily through the sale of residential and commercial properties, as well as through property leasing and management services. The company's revenue model relies heavily on the successful development of real estate projects, which are sold to end-users or investors. Key revenue streams include pre-sales of properties, where buyers purchase units before construction is completed, and post-completion sales. Additionally, the company may earn income from partnerships with local governments and other entities in urban development initiatives. Factors contributing to its earnings include market demand for housing, strategic land acquisitions, and efficient project execution.

Zhongliang Holdings Group Company Limited Financial Statement Overview

Summary

Zhongliang Holdings is experiencing significant financial difficulties, with declining revenues, persistent net losses, and negative cash flows. The balance sheet is highly leveraged, posing potential risks for future operations. Immediate strategic measures may be required to address these financial challenges.

Income Statement

Zhongliang Holdings has experienced a significant decline in revenue and profitability. The revenue decreased from 2023 to 2024, and the net income has been negative for the past three years, indicating financial struggles. The gross profit margin has also diminished, reflecting increased cost pressures or pricing challenges.

Balance Sheet

The company's balance sheet shows high leverage, with a notable debt-to-equity ratio due to substantial total debt compared to equity. The declining equity ratio suggests weakening financial stability. However, the company maintains a reasonable amount of cash and equivalents, providing some liquidity buffer.

Cash Flow

Cash flow statements indicate substantial operational challenges, with operating cash flow turning negative in recent periods. Free cash flow is also negative, signaling cash constraints. The ability to generate cash from operations has deteriorated significantly, impacting overall financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.11B	39.68B	66.62B	39.33B	76.11B	65.94B
Gross Profit	-348.55M	906.94M	3.18B	3.50B	13.03B	13.85B
EBITDA	-1.51B	-256.26M	789.39M	247.59M	8.36B	11.02B
Net Income	-1.50B	-2.43B	-4.25B	-1.35B	2.70B	3.74B
Balance Sheet
Total Assets	123.06B	133.18B	180.77B	237.82B	267.18B	270.83B
Cash, Cash Equivalents and Short-Term Investments	4.33B	5.78B	10.70B	16.62B	27.79B	34.78B
Total Debt	18.38B	20.25B	21.17B	26.78B	39.95B	54.21B
Total Liabilities	105.39B	113.80B	154.37B	206.44B	231.70B	240.65B
Stockholders Equity	3.78B	4.54B	6.89B	11.11B	11.96B	10.91B
Cash Flow
Free Cash Flow	-1.52B	-2.70B	-2.21B	10.94B	17.78B	5.61B
Operating Cash Flow	-1.51B	-2.69B	-2.19B	10.95B	17.81B	5.67B
Investing Cash Flow	3.91B	3.52B	2.85B	1.24B	-6.19B	-13.30B
Financing Cash Flow	-4.60B	-4.52B	-8.03B	-17.88B	-17.27B	18.57B

Zhongliang Holdings Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2772, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 83.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2772.

Zhongliang Holdings Group Company 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%
0618	50 Neutral	HK$615.92M	0.70	260.87%	―	82.96%	―
2892	46 Neutral	HK$251.25M	-4.27	-9.07%	―	-72.10%	90.00%
3616	44 Neutral	HK$286.80M	―	―	―	―	―
2772	44 Neutral	HK$311.26M	-0.18	-34.31%	―	-63.41%	77.97%
0124	39 Underperform	HK$397.08M	-0.45	-21.15%	―	69.55%	64.09%
3301	39 Underperform	HK$228.95M	-0.02	―	―	-60.50%	-103.48%

Zhongliang Holdings Group Company Limited Corporate Events

Zhongliang Steps Up Liquidity Measures to Tackle Auditor’s Going-Concern Disclaimer

Zhongliang Holdings Group Company Limited has provided an update on its efforts to address a going-concern disclaimer from its auditor by improving liquidity and strengthening its financial position. The group has negotiated renewals and extensions of bank and other borrowings, including pushing out the maturities of its 5.0% senior notes due 2027 and 3.0% convertible bonds due 2027, secured around RMB2.0 billion in new and extended financing at lower interest costs, and implemented cost-control measures that cut distribution and administrative expenses by roughly 20–25% in the eleven months to 30 November 2025. It also accelerated property sales and collections, bringing in about RMB4.2 billion in sales proceeds, though most of these funds remain locked in project-level escrow accounts under strict local government rules, and it is working with contractors on payment schedules while exploring disposals of stakes in certain development projects to generate cash and reduce debt. Management says it remains committed to these measures to stabilise liquidity, optimize capital structure and support shareholder value, but stresses that the figures disclosed are preliminary and unaudited, cautioning investors about potential deviations in forthcoming financial statements.

The most recent analyst rating on (HK:2772) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on Zhongliang Holdings Group Company Limited stock, see the HK:2772 Stock Forecast page.

Zhongliang Converts Half of Mandatory Convertible Bonds Into New Shares

Zhongliang Holdings Group Company Limited has completed a mandatory conversion of US$5.41 million in principal amount of its previously issued mandatory convertible bonds, representing 50% of the original US$10.81 million issue. The converted bonds have been turned into 52.72 million new shares at HK$0.80 per share, equivalent to about 1.19% of the company’s enlarged share capital, increasing total issued shares to roughly 4.45 billion and leaving US$2.68 million in principal of the bonds outstanding. The move modestly dilutes existing shareholders, slightly reduces the stakes of the two largest shareholders, and progresses the company’s balance-sheet adjustment, while the company cautions investors to be mindful of related risks when dealing in its securities.

The most recent analyst rating on (HK:2772) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on Zhongliang Holdings Group Company Limited stock, see the HK:2772 Stock Forecast page.

Zhongliang Holdings Reports RMB11.22 Billion in Contracted Sales for 2025

Zhongliang Holdings Group Company Limited reported unaudited operating statistics for the period up to November 2025, revealing contracted sales of approximately RMB11.22 billion and a gross floor area of 1,073,000 square meters. For November alone, contracted sales were approximately RMB0.91 billion. These figures are preliminary and may differ from future audited reports, and investors are advised to exercise caution.

The most recent analyst rating on (HK:2772) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on Zhongliang Holdings Group Company Limited stock, see the HK:2772 Stock Forecast page.

Zhongliang Holdings Reports RMB10.31 Billion in Contracted Sales for 2025

Zhongliang Holdings Group Company Limited announced its unaudited operating statistics for the period up to October 2025. The company reported aggregated contracted sales of approximately RMB10.31 billion and a gross floor area of 989,000 square meters from January to October 2025. For October alone, contracted sales were RMB1.05 billion with a gross floor area of 104,000 square meters. The data, based on preliminary internal information, may differ from future audited figures, and investors are advised to exercise caution.

Zhongliang Holdings Reports September 2025 Sales Performance

Zhongliang Holdings Group Company Limited reported unaudited operating statistics for September 2025, revealing contracted sales of approximately RMB0.97 billion and a contracted gross floor area of about 95,000 square meters. For the period from January to September 2025, the company achieved aggregated contracted sales of approximately RMB9.26 billion. These figures, based on preliminary internal data, highlight the company’s ongoing sales performance, though they may differ from future audited financial statements.