China Rongzhong Financial Holdings Company Limited (3963) AI Stock Analysis

• Market Cap: HK$77.67M
• Dividend Yield: N/A
• Average Volume (3M): 53.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 9.30%
• EPS Growth: 49.61%
• Country: HK
• Employees: 127
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): >-0.01
• Shares Outstanding: 606,802,550
• 10 Day Avg. Volume: 57,000
• 30 Day Avg. Volume: 53,233
• PEG Ratio: 0.40
• Price to Book (P/B): 6.77
• Price to Sales (P/S): 1.69
• P/FCF Ratio: -9.22
• 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: 40 Underperform
• Price Target: HK$0.12 ▼(-4.62% Downside)

The score is driven primarily by very weak financial fundamentals (declining revenue, negative profitability, high leverage, and worsening free cash flow). Technical indicators also remain bearish with the stock below major moving averages and negative MACD, while valuation is not supportive because the negative P/E reflects losses and there is no dividend yield data.

Positive Factors

Diversified revenue streams

Multiple business lines (leasing, factoring, asset management) create recurring and fee-based income sources, reducing concentration risk. Over months, this diversification supports revenue resilience and cross-sell potential even if one segment slows.

SME-focused market niche

Specialization on SMEs targets a large, structurally underserved market for equipment finance and receivables. Domain expertise and tailored products can drive durable origination volumes, client stickiness, and steady demand over a multi-month horizon.

Strategic partnerships with banks and FIs

Partnerships expand distribution, funding access, and risk-sharing capacity. Structurally, they can lower funding costs, increase deal flow, and enable scale without proportionate balance-sheet leverage, supporting sustainable growth over several months.

Negative Factors

High leverage

A debt-to-equity near 3x signals material solvency and refinancing risk; high leverage constrains flexibility, magnifies credit shocks, and increases interest burden. Over months, this limits capital for growth and heightens vulnerability to funding stress.

Negative profitability margins

Sustained negative EBIT and net margins mean operations are not generating sufficient returns, eroding equity and retention capacity. Without margin recovery, reinvestment and organic growth are impaired, requiring structural fixes or capital injections.

Deteriorating cash generation

Sharp FCF decline and low operating cash relative to income reduce ability to service debt and fund operations. Persistently weak cash conversion can force asset sales or new financing, increasing dilution or cost and stressing medium-term viability.

China Rongzhong Financial Holdings Company Limited Business Overview & Revenue Model

Company Description

China Rongzhong Financial Holdings Company Limited, an investment holding company, provides financial leasing services in the People's Republic of China. The company focuses on financing the needs of SMEs in Hubei province. It provides financial leasing services in the categories of sales and leaseback, and direct financial leasing. The company also offers value-added services, such as advisory and consultancy services to its customers. It primarily serves laser processing, plastics, industrial processing, textile and garments, hotel and leisure, and other industries. The company was founded in 2008 and is headquartered in Wuhan, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through its financial leasing operations, where it leases equipment and machinery to SMEs, earning income from leasing fees. Additionally, it provides factoring services, which involve purchasing receivables from businesses at a discount, thereby earning a profit on the difference between the purchase price and the collected amount. Investment income from its asset management activities also contributes to its revenue streams. Strategic partnerships with banks and financial institutions enhance its service offerings and help to expand its customer base, further bolstering its earnings potential.

China Rongzhong Financial Holdings Company Limited Financial Statement Overview

Summary

Weak fundamentals: revenue declined (-11.1%), profitability is negative (net profit and EBIT margins), leverage is high (debt-to-equity 2.95) with negative ROE, and cash generation is deteriorating (free cash flow growth -54.95% with weak cash conversion).

Income Statement

The income statement shows declining revenue with a negative growth rate of -11.1% in the latest year. The company has struggled with profitability, evidenced by negative net profit margins and EBIT margins over the years. The gross profit margin has significantly decreased, indicating challenges in maintaining cost efficiency.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.95, indicating significant reliance on debt financing. The negative return on equity suggests inefficiencies in generating returns for shareholders. The equity ratio is low, highlighting potential financial instability.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate of -54.95%, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is negative, indicating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	87.27M	69.42M	89.00M	51.06M	35.12M	-13.96M
Gross Profit	0.00	540.00K	18.95M	51.06M	10.45M	-13.96M
EBITDA	11.64M	10.34M	9.61M	0.00	-532.20M	0.00
Net Income	-7.82M	-8.11M	-9.62M	-124.61M	-567.55M	-121.38M
Balance Sheet
Total Assets	82.85M	85.55M	84.69M	93.64M	433.92M	846.97M
Cash, Cash Equivalents and Short-Term Investments	10.27M	7.97M	6.97M	14.57M	15.48M	12.31M
Total Debt	40.68M	51.21M	40.03M	62.71M	778.64M	660.29M
Total Liabilities	65.28M	67.58M	66.95M	118.64M	1.13B	956.96M
Stockholders Equity	13.71M	17.34M	18.46M	-31.29M	-701.43M	-109.99M
Cash Flow
Free Cash Flow	-12.56M	-12.74M	-15.06M	473.00K	-6.45M	19.73M
Operating Cash Flow	14.63M	18.64M	22.72M	29.82M	2.70M	19.73M
Investing Cash Flow	-14.63M	-19.98M	-25.59M	-12.67M	2.05M	120.00K
Financing Cash Flow	1.74M	2.09M	-4.04M	-18.87M	-2.56M	-30.15M

China Rongzhong Financial Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3963, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.15, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 28.67 is Positive, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3963.

China Rongzhong Financial Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1905	71 Outperform	HK$6.51B	4.35	7.87%	11.28%	0.59%	-5.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1601	64 Neutral	HK$1.37B	3.78	9.89%	7.43%	1.11%	3.98%
6866	64 Neutral	HK$430.70M	7.13	2.75%	4.88%	-12.94%	-15.93%
1563	59 Neutral	HK$279.00M	20.88	0.49%	―	8.77%	-76.88%
0379	42 Neutral	HK$107.99M	-1.42	-21.07%	―	25.64%	-25.07%
3963	40 Underperform	HK$77.67M	-9.92	-52.79%	―	9.30%	49.61%

China Rongzhong Financial Holdings Company Limited Corporate Events

China Rongzhong Extends Long Stop Date for Convertible Bond Subscription

China Rongzhong Financial Holdings Company Limited has announced an extension to the long stop date for completing a connected transaction involving the proposed issue of a convertible bond under a specific mandate. The company and the subscriber have agreed to push the deadline for satisfying the conditions precedent under the Subscription Agreement from 31 December 2025 to 30 June 2026, allowing more time to complete necessary requirements while keeping all other terms of the agreement unchanged, which indicates the transaction remains on track but subject to extended procedural timelines for stakeholders.

The most recent analyst rating on (HK:3963) stock is a Sell with a HK$0.16 price target. To see the full list of analyst forecasts on China Rongzhong Financial Holdings Company Limited stock, see the HK:3963 Stock Forecast page.

China Rongzhong Reports Interim Financial Results with Continued Losses

China Rongzhong Financial Holdings Company Limited announced its unaudited interim results for the six months ending September 30, 2025. The company reported a slight increase in revenue compared to the previous year, but still faced a loss before tax of HK$722,000. The comprehensive expense for the period was HK$715,000, indicating a decrease in losses compared to the same period last year. These results reflect ongoing challenges in the financial leasing sector, impacting the company’s profitability and stakeholder interests.

The most recent analyst rating on (HK:3963) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on China Rongzhong Financial Holdings Company Limited stock, see the HK:3963 Stock Forecast page.

China Rongzhong Financial Holdings Issues Profit Warning with Improved Loss Figures

China Rongzhong Financial Holdings Company Limited has issued a profit warning, indicating an expected loss of approximately HK$734,000 for the six months ended September 30, 2025, a significant improvement from the HK$3,438,000 loss in the same period the previous year. This decrease in loss is attributed to increased revenue from debt collection services, influenced by factors such as debtor recoverability and repayment timelines. The company’s financial results are still under internal review and subject to adjustments, with a finalized announcement expected by the end of November 2025.

The most recent analyst rating on (HK:3963) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rongzhong Financial Holdings Company Limited stock, see the HK:3963 Stock Forecast page.

China Rongzhong Announces Upcoming Board Meeting for Interim Results

China Rongzhong Financial Holdings Company Limited has announced that its board of directors will meet on 27 November 2025 to consider and approve the interim results for the six months ended 30 September 2025. The meeting will also discuss the recommendation of an interim dividend and other business matters.

The most recent analyst rating on (HK:3963) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rongzhong Financial Holdings Company Limited stock, see the HK:3963 Stock Forecast page.

China Rongzhong Approves HK$35 Million Convertible Bonds Issuance

China Rongzhong Financial Holdings Company Limited announced that during its Extraordinary General Meeting held on October 30, 2025, a resolution was passed to approve a Subscription Agreement with Goldbond Group Holdings Limited. This agreement involves the issuance of convertible bonds worth HK$35,000,000. The approval signifies a strategic move to enhance the company’s financial position and operational capabilities, potentially impacting its market standing and stakeholder interests.

The most recent analyst rating on (HK:3963) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rongzhong Financial Holdings Company Limited stock, see the HK:3963 Stock Forecast page.