China Success Finance Group Holdings Ltd. (3623) AI Stock Analysis

• Market Cap: HK$661.09M
• Dividend Yield: N/A
• Average Volume (3M): 185.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: 90.50%
• EPS Growth: -12.94%
• Country: HK
• Employees: 66
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Conglomerates
• EPS (TTM): -0.06
• Shares Outstanding: 629,613,340
• 10 Day Avg. Volume: 92,800
• 30 Day Avg. Volume: 185,733
• PEG Ratio: 0.10
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.84
• 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

• Rating: 45 Neutral
• Price Target: ―

China Success Finance Group Holdings Ltd. faces significant financial challenges, with declining revenues and negative profit margins. Despite a strong cash reserve, the company relies on debt, which is concerning. The short-term technical indicators suggest some positive momentum, though the stock is overbought. The negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness.

China Success Finance Group Holdings Ltd. Business Overview & Revenue Model

Company Description

China Success Finance Group Holdings Limited, an investment holding company, provides financial and non-financial guarantee, financial leasing and factoring, and financial consultancy services in the People's Republic of China. It offers financial guarantees, such as corporate financial, individual credit, financial leasing equipment, trusteeship, joint bond, corporate bond issuance, non-financing, and performance guarantees, as well as letter of guarantee for construction, and financing/financial consultancy and financial technology services. The company also provides asset management services, including investment and financing management, asset/debt restructuring, special asset acquisition, corporate financial management, and financial consultancy services. In addition, it offers private equity fund management, asset management, and investment advisory services; financial leasing services, such as direct, trusted, and joint leasing, as well as sale-leaseback and bank factoring; and investment and acquisition, overseas capital, supply chain finance, real estate finance, and micro credit services, as well as agricultural development services. The company was founded in 1996 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

China Success Finance Group Holdings Ltd. generates revenue primarily through fees and interest income derived from its financial guarantee services and financial leasing operations. The financial guarantee services involve providing assurance to lenders on behalf of SMEs, for which the company charges a fee. Additionally, the financial leasing segment allows the company to earn interest and fees by leasing equipment and other assets to SMEs. The revenue model is supported by strategic partnerships with banks and financial institutions, which enhance the company's capacity to offer these services and expand its market reach.

China Success Finance Group Holdings Ltd. Financial Statement Overview

Summary

The company is experiencing significant financial challenges with declining revenues, negative profit margins, and operational inefficiencies. The balance sheet shows a growing reliance on debt, though supported by a strong cash reserve. Cash flow analysis reveals volatility and potential constraints on future investments.

Income Statement

The company has been experiencing declining revenues with a significant decrease over the years. The gross profit margins are consistently negative, indicating a cost structure problem. Net profit margins are also negative, reflecting ongoing losses. There is an absence of EBIT and EBITDA margins, further highlighting the operational challenges faced by the company.

Balance Sheet

The company's debt-to-equity ratio is moderate, but it has been increasing, suggesting growing reliance on debt. The equity ratio is decreasing, indicating potential challenges in maintaining financial stability. Return on Equity is negative due to consistent losses, which is a concern for investors. Despite these issues, the company maintains a substantial cash position relative to its liabilities.

Cash Flow

The company's cash flow metrics show significant volatility. Operating cash flow has been negative in several years, indicating issues with generating cash from operations. Despite this, the company has managed to maintain some level of free cash flow in recent years. The absence of capital expenditures in the latest year might be a temporary relief but raises questions about future growth investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.90M	15.64M	91.99M	108.90M	185.16M
Gross Profit	-28.14M	-49.98M	-90.02M	-51.18M	-66.37M
EBITDA	-17.31M	0.00	0.00	0.00	0.00
Net Income	-39.12M	-33.42M	-74.18M	-71.18M	-83.42M
Balance Sheet
Total Assets	558.74M	644.94M	739.55M	922.18M	1.20B
Cash, Cash Equivalents and Short-Term Investments	227.77M	26.17M	54.12M	93.62M	177.96M
Total Debt	156.10M	174.19M	191.19M	177.78M	121.54M
Total Liabilities	321.01M	352.83M	402.69M	512.71M	718.97M
Stockholders Equity	287.76M	324.56M	357.04M	421.37M	480.36M
Cash Flow
Free Cash Flow	28.27M	8.26M	-38.84M	-105.67M	-113.05M
Operating Cash Flow	28.82M	9.35M	-12.76M	-88.53M	-26.75M
Investing Cash Flow	1.68M	814.00K	-3.76M	-14.52M	-71.13M
Financing Cash Flow	-34.79M	-27.35M	18.96M	46.11M	-7.36M

China Success Finance Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3623, the sentiment is Neutral. The current price of 1.05 is below the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.02, and above the 200-day MA of 0.90, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.36 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3623.

China Success Finance Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6058	73 Outperform	HK$1.58B	17.10	2.90%	2.53%	37.85%	69.85%
Sector *	67 Neutral	$16.67B	11.46	9.71%	3.91%	11.61%	-9.60%
1945	56 Neutral	HK$381.52M	29.33	2.12%	―	-20.33%	-21.84%
3623	45 Neutral	HK$661.09M	―	-12.79%	―	90.50%	-12.94%
8029	41 Neutral	HK$175.05M	―		―	14.74%	54.81%
597		€96.59M	―	-91.79%	―	―	―
0279	35 Underperform	HK$951.37M	―		―	269.23%	61.54%

China Success Finance Group Holdings Ltd. Corporate Events

China Success Finance Announces Bond Subscription and Share Placing

China Success Finance Group Holdings Ltd. announced a discloseable transaction involving the subscription for an exchangeable bond valued at US$4 million and the placing of new shares under a general mandate. This move includes issuing consideration shares and placing up to 77 million shares at a discount, aiming to raise approximately HK$53.36 million net proceeds. These actions are expected to impact the company’s share capital and market positioning, subject to the satisfaction of certain conditions.

China Success Finance Grants 9 Million Share Options to Boost Growth

China Success Finance Group Holdings Ltd. has announced the grant of 9,000,000 share options to eligible participants under its Share Option Scheme, aimed at recognizing and incentivizing contributions to the company. The options, valid for ten years with a 12-month vesting period, are designed to align the interests of grantees with shareholders, promoting sustained competitiveness and growth without future performance targets.

China Success Finance Partners with Yinzhe Technology for Strategic Growth

China Success Finance Group Holdings Ltd. has entered into a strategic cooperation agreement with Yinzhe Technology to enhance their financial services offerings in the Greater Bay Area. This collaboration aims to leverage both companies’ strengths in fintech and real estate to develop innovative financial products and services, potentially opening new development opportunities and deepening strategic cooperation.

China Success Finance Reports 2024 Annual Results with Increased Revenue but Higher Losses

China Success Finance Group Holdings Ltd. reported its annual results for the year ending December 31, 2024, showing a significant increase in revenue by 225.4% to RMB 64,585,000 compared to the previous year. Despite the revenue growth, the company faced a comprehensive loss of RMB 55,939,000, marking a 23.1% increase in losses from the previous year. The results reflect challenges in managing costs, particularly in the energy storage system sector, and a decrease in other revenue streams.

China Success Finance Group Issues Profit Warning Amid Market Challenges

China Success Finance Group Holdings Limited has issued a profit warning, indicating an expected increase in losses by 20% to 30% for the year ending December 31, 2024, compared to the previous year. The anticipated losses are primarily due to challenges in their market hog business, which is undergoing a transitional period, and a decline in real estate market prices in mainland China, affecting the fair value of their financial assets. Stakeholders are advised to exercise caution as the final financial results may differ from the preliminary assessment.

China Success Finance Group Announces Upcoming Board Meeting

China Success Finance Group Holdings Ltd. has announced a board meeting scheduled for March 28, 2025, where the board will consider and approve the consolidated financial results for the year ended December 31, 2024. The meeting will also discuss the recommendation for the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.