Xinji Shaxi Group Co., Ltd. (3603) AI Stock Analysis

• Market Cap: HK$58.22M
• Dividend Yield: N/A
• Average Volume (3M): 537.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -18.46%
• EPS Growth: -12.77%
• Country: HK
• Employees: 256
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.02
• Shares Outstanding: 1,492,944,000
• 10 Day Avg. Volume: 93,000
• 30 Day Avg. Volume: 537,100
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 0.45
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is heavily impacted by the company's poor financial performance, characterized by persistent losses and cash flow issues. While there is some positive short-term technical momentum, the overbought RSI suggests caution. The negative P/E ratio and lack of dividend yield further weigh down the valuation score.

Xinji Shaxi Group Co., Ltd. Business Overview & Revenue Model

Company Description

Xinji Shaxi Group Co., Ltd. (3603) is a diversified enterprise based in China, primarily engaged in the manufacturing and distribution of high-quality textiles and apparel. The company operates across various sectors, including fashion, home textiles, and industrial fabrics, with a strong emphasis on innovation and sustainability. Xinji Shaxi Group is known for its extensive product range, which includes garments, fabrics, and textile-related services, catering to both domestic and international markets.

How the Company Makes Money

Xinji Shaxi Group Co., Ltd. generates revenue through multiple streams, primarily focusing on the production and sale of textiles and apparel. The company’s core revenue model relies on wholesale and retail sales of its products, which are distributed through various channels, including online platforms and physical retail stores. Additionally, Xinji Shaxi Group engages in partnerships with international brands and retailers, enhancing its market reach and brand visibility. The company also benefits from its commitment to quality and sustainability, which attracts a loyal customer base willing to pay premium prices for eco-friendly products. Other significant revenue sources may include contract manufacturing and textile services provided to other businesses, further diversifying its income portfolio.

Xinji Shaxi Group Co., Ltd. Financial Statement Overview

Summary

Xinji Shaxi Group Co., Ltd. faces significant financial challenges, particularly in generating profits and managing cash flows. The income statement shows persistent losses, the balance sheet indicates high leverage, and cash flow has deteriorated. These factors pose risks to financial stability and long-term sustainability.

Income Statement

The company has experienced a decline in revenue over the years, with a negative revenue growth rate of approximately -6.8% from 2023 to 2024. The net profit margin is negative, reflecting ongoing losses, and both EBIT and EBITDA margins are also negative, indicating operational challenges. The gross profit margin remains high but is overshadowed by large operating losses.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio, with total debt significantly impacting equity. The equity ratio remains relatively stable, indicating some level of asset backing, yet the return on equity is negative due to consistent net losses. Cash reserves have improved, suggesting some liquidity, but overall leverage remains a concern.

Cash Flow

The cash flow statement reveals weak free cash flow growth, with zero free cash flow reported in 2024 compared to previous years. The operating cash flow to net income ratio is not calculable due to zero operating cash flow in the latest period, highlighting cash generation issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	241.98M	254.79M	273.37M	298.42M	297.43M	287.94M
Gross Profit	241.98M	254.79M	230.16M	250.71M	240.76M	261.12M
EBITDA	-99.79M	-139.23M	-23.14M	-150.91M	-206.73M	121.63M
Net Income	-99.92M	-162.31M	-79.99M	-168.71M	-207.50M	32.97M
Balance Sheet
Total Assets	2.65B	2.67B	2.93B	2.83B	3.10B	3.29B
Cash, Cash Equivalents and Short-Term Investments	0.00	582.50M	513.01M	314.48M	249.33M	182.50M
Total Debt	573.32M	574.42M	1.10B	897.13M	901.45M	802.38M
Total Liabilities	1.51B	1.49B	1.60B	1.42B	1.42B	1.39B
Stockholders Equity	1.15B	1.18B	1.34B	1.42B	1.72B	1.90B
Cash Flow
Free Cash Flow	124.09M	143.00M	123.15M	128.72M	112.47M	49.72M
Operating Cash Flow	124.09M	143.29M	134.01M	137.14M	114.47M	52.67M
Investing Cash Flow	16.46M	9.11M	-45.57M	-52.62M	-146.95M	-127.36M
Financing Cash Flow	-40.59M	-82.90M	110.18M	-18.65M	100.02M	-14.40M

Xinji Shaxi Group Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3603, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 87.37 is Negative, neither overbought nor oversold. The STOCH value of 104.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3603.

Xinji Shaxi Group Co., Ltd. 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%
0616	46 Neutral	HK$174.48M	―	-12.21%	―	40.24%	68.53%
0183	45 Neutral	HK$98.08M	―	-4.91%	―	30.19%	72.49%
1941	45 Neutral	HK$80.25M	―	-6.82%	―	1.53%	22.83%
0499	44 Neutral	HK$112.84M	―	-10.84%	―	-6.81%	-23.46%
0864	43 Neutral	HK$50.59M	―	-55.99%	―	-8.18%	-212.59%
3603	41 Neutral	HK$58.22M	―	-8.33%	―	-18.46%	-12.77%

Xinji Shaxi Group Co., Ltd. Corporate Events

Xinji Shaxi Group Executives Released and Resume Duties

Xinji Shaxi Group Co., Ltd. announced that its executives, Mr. Cheung, Mr. Mei, and Mr. Zhang, have been released from detainment by the Guangzhou Municipal Public Security Bureau Panyu District Branch and have resumed their duties in the company. This update reassures shareholders and potential investors about the stability of the company’s leadership, although they are advised to exercise caution when dealing in the company’s securities.

Xinji Shaxi Group Reports Interim Results and Board Changes

Xinji Shaxi Group Co., Ltd. reported its unaudited interim results for the six months ending June 30, 2025, showing a decrease in revenue to RMB 116,593,000 compared to RMB 129,405,000 in the same period of 2024. Despite a reduced loss of RMB 29,130,000 from RMB 91,293,000 in the previous year, the company faced significant fair value losses on investment properties, impacting its financial performance. The announcement also included changes in the composition of the nomination committee and the appointment of alternate directors, which may influence the company’s strategic direction and governance.

Xinji Shaxi Group Announces Board Composition and Committee Roles

Xinji Shaxi Group Co., Ltd. has announced the composition of its board of directors, including executive, non-executive, and independent non-executive directors, along with alternate directors. The company has also established three board committees: the Audit Committee, Remuneration Committee, and Nomination Committee, detailing the membership roles of each board member. This announcement provides clarity on the governance structure and leadership roles within the company, which could impact its strategic direction and decision-making processes.

Xinji Shaxi Group Co., Ltd. Forms Nomination Committee for Enhanced Governance

Xinji Shaxi Group Co., Ltd. has established a nomination committee to oversee board appointments and performance. The committee will consist of at least three members, primarily independent non-executive directors, and will meet at least once a year to ensure effective governance and compliance with relevant regulations.

Xinji Shaxi Group Co., Ltd. Establishes Audit Committee to Enhance Governance

Xinji Shaxi Group Co., Ltd. has established an audit committee as of October 3, 2019. The committee is composed of non-executive directors, with a majority being independent, to ensure compliance with the Hong Kong Listing Rules. This move is aimed at enhancing the company’s governance and oversight, potentially strengthening its market position and stakeholder confidence.

Xinji Shaxi Group Executives Detained, Company Operations Unaffected

Xinji Shaxi Group Co., Ltd. announced that three of its executive directors and controlling shareholders, Mr. Cheung Hon Chuen, Mr. Mei Zuoting, and Mr. Zhang Weixin, have been detained by the Guangzhou Municipal Public Security Bureau in connection with an alleged offense of illegally taking deposits from the public. Despite this incident, the company assures stakeholders that its financial position and operations remain unaffected as the board continues to function with other directors and experienced management personnel overseeing daily operations.