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

• Market Cap: HK$83.60M
• Dividend Yield: N/A
• Average Volume (3M): 537.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.05 ▼(-10.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by persistent losses and cash flow challenges. While technical analysis shows some bullish trends, the high RSI suggests caution. The negative P/E ratio and lack of dividend yield further weigh down the stock's attractiveness.

Positive Factors

Sustainability Focus

Xinji Shaxi Group's focus on sustainability and eco-friendly products enhances brand loyalty and can command premium pricing, supporting long-term revenue stability.

Diversified Revenue Streams

A diversified revenue model, including wholesale, retail, and online channels, reduces dependency on a single market and enhances resilience against market fluctuations.

International Partnerships

Partnerships with international brands expand market reach and brand visibility, potentially increasing revenue and market share over time.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, especially in downturns, impacting long-term financial health.

Persistent Losses

Ongoing losses and deteriorating cash flow highlight operational inefficiencies, posing risks to sustainability and growth.

Negative Revenue Growth

Declining revenue growth reflects challenges in market demand and competitiveness, potentially impacting future profitability and market position.

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

Company Description

Xinji Shaxi Group Co., Ltd, an investment holding company, operates and manages hospitality supplies and home furnishing shopping malls in the People's Republic of China. The company operates five shopping malls, including three shopping malls for hospitality supplies and two shopping malls for home furnishings. It also rents hospitality supplies; provides exhibition management services; and operates an online shopping mall. The company was founded in 2002 and is headquartered in Guangzhou, China.

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: Neutral
• 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 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 92.50 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	54 Neutral	HK$565.91M	-2.31	-5.14%	―	79.76%	88.69%
1941	48 Neutral	HK$95.25M	-5.52	-6.82%	―	1.53%	22.83%
3603	48 Neutral	HK$83.60M	-0.77	-8.33%	―	-18.46%	-12.77%
0183	45 Neutral	HK$96.38M	-1.45	-4.91%	―	30.19%	72.49%
0864	42 Neutral	HK$51.75M	-0.15	-55.99%	―	-8.18%	-212.59%
0499	41 Neutral	HK$107.84M	-3.36	-10.84%	―	-6.81%	-23.46%

Xinji Shaxi Group Co., Ltd. Corporate Events

Xinji Shaxi Group Renews Headquarters Tenancy Agreement

Xinji Shaxi Group Co., Ltd. announced the renewal of a tenancy agreement for its headquarters, with Guangzhou Shaxi Hotel, a subsidiary of the company, entering into a two-year lease with Guangzhou Real Estate. This agreement, effective from January 1, 2026, to December 31, 2027, involves a prepayment of RMB8,841,642. The transaction is classified as a discloseable and connected transaction under Hong Kong’s Listing Rules, requiring notification and announcement due to its financial implications and the involvement of connected persons.

Xinji Shaxi Group Secures Shareholder Approval for Strategic Property Bidding

Xinji Shaxi Group Co., Ltd. announced that its shareholders approved a resolution at the Extraordinary General Meeting held on December 5, 2025. The resolution authorizes the company’s directors to appoint a representative to bid on properties in China, with a potential lease agreement with local economic cooperatives. This strategic move is expected to enhance the company’s operational capabilities and market positioning in the real estate sector.

Xinji Shaxi Group Plans Strategic Property Lease in Guangzhou

Xinji Shaxi Group Co., Ltd. has announced an extraordinary general meeting to authorize its directors to appoint a representative to participate in a bidding process for leasing properties in Guangzhou, China. This move could potentially expand the company’s operational footprint in the region, allowing it to secure strategic locations for its subsidiaries, thereby enhancing its market presence and competitive positioning.

Xinji Shaxi Group Seeks Approval for Major Lease Acquisition

Xinji Shaxi Group Co., Ltd. is seeking shareholder approval to participate in a bidding process for a 20-year lease of properties where its Xinji Hotelex Hospitality Supplies Center is located. This potential lease, if successful, would be considered a very substantial acquisition under Hong Kong’s Listing Rules, requiring the Group to recognize the properties as a right-of-use asset. The proposed mandate aims to allow the Group to proceed with the lease agreement without delay if they win the bid, ensuring continued operations of their hospitality supplies center.

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.