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

• Market Cap: HK$145.63M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -5.19%
• EPS Growth: 36.15%
• Country: HK
• Employees: 127
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Credit Services
• EPS (TTM): >-0.01
• Shares Outstanding: 606,802,550
• 10 Day Avg. Volume: 131,000
• 30 Day Avg. Volume: 1,143,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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 primarily impacted by the company's poor financial performance, characterized by declining revenues, high leverage, and negative profitability. Technical analysis shows a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

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 through multiple streams, primarily from interest income earned on loans extended to consumers and businesses. This includes personal loans, auto loans, and corporate financing. Additionally, China Rongzhong earns fees from asset management services and financial advisory services provided to clients. Significant partnerships with banks and financial institutions also enhance its lending capabilities, allowing the company to leverage additional funds and expand its client base. Moreover, the company's growth is supported by its strategic focus on the emerging markets in China, where demand for financial services continues to rise.

China Rongzhong Financial Holdings Company Limited Financial Statement Overview

Summary

China Rongzhong Financial Holdings Company Limited faces significant financial challenges. The company has declining revenues, high leverage, and negative profitability metrics. Cash flow issues further exacerbate the financial instability, raising concerns about the company's ability to sustain operations without significant improvements.

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	78.08M	69.42M	89.00M	51.06M	35.12M	-13.96M
Gross Profit	78.08M	540.00K	18.95M	51.06M	10.45M	-13.96M
EBITDA	4.38M	10.34M	9.61M	0.00	-522.41M	0.00
Net Income	-12.64M	-8.11M	-9.62M	-124.61M	-567.55M	-121.38M
Balance Sheet
Total Assets	89.45M	85.55M	84.69M	93.64M	433.92M	846.97M
Cash, Cash Equivalents and Short-Term Investments	7.35M	7.97M	6.97M	14.57M	15.48M	12.31M
Total Debt	3.73M	51.21M	40.03M	62.71M	778.64M	660.29M
Total Liabilities	73.41M	67.58M	66.95M	118.64M	1.13B	956.96M
Stockholders Equity	15.90M	17.34M	18.46M	-31.29M	-701.43M	-109.99M
Cash Flow
Free Cash Flow	-28.29M	-12.74M	-15.06M	473.00K	-6.45M	19.73M
Operating Cash Flow	24.98M	18.64M	22.72M	29.82M	2.70M	19.73M
Investing Cash Flow	-35.69M	-19.98M	-25.59M	-12.67M	2.05M	120.00K
Financing Cash Flow	2.67M	2.09M	-4.04M	-18.87M	-2.56M	-30.15M

China Rongzhong Financial Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.25, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 34.78 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	69 Neutral	HK$7.25B	4.90	7.87%	9.78%	0.59%	-5.95%
Sector *	68 Neutral	$17.88B	11.66	10.46%	3.76%	9.66%	1.70%
1601	68 Neutral	HK$1.20B	4.13	10.90%	7.10%	2.47%	2.27%
6866	68 Neutral	HK$365.80M	6.75	2.48%	4.48%	-25.70%	-39.65%
1563	62 Neutral	HK$351.71M	11.80	1.12%	―	-9.75%	-81.16%
0379	49 Neutral	HK$134.98M	―	-21.07%	―	25.64%	-25.07%
3963	41 Neutral	HK$145.63M	―	-45.32%	―	-5.19%	36.15%

China Rongzhong Financial Holdings Company Limited Corporate Events

China Rongzhong Updates Nomination Committee Terms

China Rongzhong Financial Holdings Company Limited has updated the terms of reference for its Nomination Committee, which was originally established in 2015. The changes include provisions for the composition, frequency, and proceedings of meetings, ensuring compliance with the Hong Kong Stock Exchange’s listing rules. These updates aim to enhance the governance and operational efficiency of the company’s board, potentially impacting its strategic decision-making and stakeholder relations.

China Rongzhong Reports Reduced Losses Amid Revenue Decline

China Rongzhong Financial Holdings Company Limited announced its audited annual results for the financial year ending March 31, 2025, revealing a decrease in revenue to HK$83,529,000 from HK$89,004,000 in the previous year. The company reported a loss of HK$6,777,000, slightly improved from the previous year’s loss of HK$7,579,000, indicating ongoing financial challenges but a slight reduction in losses.

China Rongzhong Schedules Board Meeting to Approve Annual Results

China Rongzhong Financial Holdings Company Limited has announced a board meeting scheduled for June 26, 2025, to discuss and approve the annual results for the year ending March 31, 2025. The meeting will also consider the recommendation of a final dividend and address any other business matters, which could impact the company’s financial strategy and shareholder returns.