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

• Market Cap: HK$599.13M
• Dividend Yield: N/A
• Average Volume (3M): 110.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -66.98%
• EPS Growth: -115.16%
• Country: HK
• Employees: 66
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): >-0.01
• Shares Outstanding: 630,663,300
• 10 Day Avg. Volume: 164,800
• 30 Day Avg. Volume: 110,133
• PEG Ratio: -0.68
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 6.75
• P/FCF Ratio: 15.97
• 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$1.00 ▼(-23.08% Downside)

The score is driven primarily by weak financial performance (ongoing net losses and negative returns) and a bearish technical picture (below key moving averages with negative MACD). Recent positive free cash flow and only moderate leverage provide some offset, while valuation is difficult to assess given a negative P/E and no dividend yield data.

Positive Factors

Improved Cash Generation

Positive cash flow indicates improved financial discipline and operational efficiency, providing a buffer against ongoing net losses.

Moderate Leverage

Moderate leverage suggests manageable debt levels, reducing financial risk and providing stability in uncertain economic conditions.

Enhanced Corporate Governance

Improved governance can lead to better strategic decisions and increased investor confidence, positively impacting long-term performance.

Negative Factors

Persistently Negative Profitability

Ongoing losses and negative margins indicate fundamental profitability issues, which could hinder growth and shareholder returns.

Declining Revenue

Decreasing revenue reflects challenges in market position or demand, potentially impacting long-term viability and competitiveness.

Asset Decline

A reduction in assets may indicate contraction or inefficiencies, limiting the company's ability to leverage resources for growth.

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

Company Description

China Success Finance Group Holdings Ltd. (3623) is a financial services company based in China, primarily engaged in providing a range of financial solutions to small and medium-sized enterprises (SMEs). The company specializes in offering financial guarantee services, financial leasing, and other related financial services that facilitate the growth and development of SMEs in the region.

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

Overall fundamentals are constrained by persistently negative profitability (net losses every year shown, structurally negative margins and ROE), partially offset by improved cash generation (operating cash flow and free cash flow positive in 2023–2024) and a balance sheet that is not over-levered (moderate debt-to-equity, positive equity).

Income Statement

Profitability remains weak: the company reported net losses in every year shown (2024: -39.1M; 2023: -33.4M; 2022: -74.2M), and margins are structurally negative (2024 gross margin ~-42% and net margin ~-58%). Revenue is volatile and trending down recently (2024 revenue ~66.9M, down ~8.9% YoY; 2023 down ~0.8% YoY), though 2024 shows improvement versus the unusually weak 2023 revenue base. Losses have narrowed materially from the extreme 2019 result, but the core earnings profile is still not sustainably profitable.

Balance Sheet

Leverage is moderate for the period, with debt-to-equity around ~0.54 in 2024 (similar to 2022–2023), but higher than 2019–2020 levels—suggesting increased reliance on debt over time. Equity remains positive (2024: ~287.8M), providing some balance sheet cushion, yet ongoing losses keep returns on equity negative (2024 ROE ~-13.6%) and pressure capital over time. Total assets have also declined from prior years (2024 ~558.7M vs. 2021 ~922.2M), which may reflect contraction or asset run-off.

Cash Flow

Cash generation improved meaningfully versus earlier years: operating cash flow and free cash flow turned positive in 2023 and strengthened further in 2024 (2024 operating cash flow ~28.8M; free cash flow ~28.3M). However, free cash flow declined in 2024 versus 2023 (growth ~-21.3%), and cash flow still looks small relative to the scale of debt (2024 operating cash flow to total debt ~0.20). A key positive is that free cash flow is roughly in line with the reported net loss in 2024 (free cash flow to net income ~0.98), indicating better cash discipline despite accounting losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.94M	66.90M	22.74M	91.99M	108.90M	185.16M
Gross Profit	-29.07M	-28.14M	-42.87M	-90.02M	-51.18M	-66.37M
EBITDA	-18.72M	-17.31M	0.00	0.00	0.00	0.00
Net Income	-30.38M	-39.12M	-33.42M	-74.18M	-71.18M	-83.42M
Balance Sheet
Total Assets	559.91M	558.74M	644.94M	739.55M	922.18M	1.20B
Cash, Cash Equivalents and Short-Term Investments	63.54M	49.40M	26.17M	157.15M	128.16M	151.32M
Total Debt	133.44M	211.69M	174.19M	191.19M	177.78M	121.54M
Total Liabilities	276.14M	321.01M	352.83M	402.69M	512.71M	718.97M
Stockholders Equity	339.51M	287.76M	324.56M	357.04M	421.37M	480.36M
Cash Flow
Free Cash Flow	4.89M	28.27M	8.26M	-38.84M	-105.67M	-113.05M
Operating Cash Flow	5.53M	28.82M	9.35M	-12.76M	-88.53M	-26.75M
Investing Cash Flow	-386.00K	1.68M	814.00K	-3.76M	-14.52M	-71.13M
Financing Cash Flow	10.92M	-34.79M	-27.35M	7.96M	46.11M	-7.36M

China Success Finance Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3623, the sentiment is Negative. The current price of 1.3 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 1.09, and above the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 25.46 is Positive, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6058	64 Neutral	HK$1.98B	26.05	2.32%	2.11%	20.05%	16.56%
1945	57 Neutral	HK$507.69M	102.58	0.78%	―	-21.71%	-75.78%
0279	50 Neutral	HK$827.14M	-15.53	-499.08%	―	191.15%	-1.98%
8029	49 Neutral	HK$336.10M	-8.77	―	―	-20.98%	-7.44%
3329	46 Neutral	HK$1.05B	-0.89	-99.49%	―	22.37%	20.18%
3623	44 Neutral	HK$599.13M	-15.77	-9.25%	―	-66.98%	-115.16%