Leading Holdings Group Limited (6999) AI Stock Analysis

• Market Cap: HK$120.15M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -54.30%
• EPS Growth: -57.24%
• Country: HK
• Employees: 585
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 1,026,945,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -0.93
• 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: 49 Neutral
• Price Target: HK$0.12 ▼(-3.33% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, which is a significant risk factor. While technical analysis shows some positive momentum, the negative valuation metrics due to unprofitability weigh heavily on the score. The absence of earnings call data and corporate events leaves these areas unaddressed.

Leading Holdings Group Limited Business Overview & Revenue Model

Company Description

Leading Holdings Group Limited engages in the development and sale of residential and commercial properties in China. The company operates through three segments: Property Development, Commercial Property Investment and Operation, and Hotel Operations. It also holds various commercial properties for further investment purpose; engages in hotel management business; and provides project management services. The company was formerly known as Leading China Holdings Limited. Leading Holdings Group Limited was founded in 1999 and is headquartered in Chengdu, China.

How the Company Makes Money

Leading Holdings Group Limited generates revenue through various streams, primarily from asset management fees, performance-based fees, and advisory service charges. The company earns a significant portion of its income by managing investment portfolios for clients, where it charges management fees based on the assets under management (AUM). Additionally, performance fees are collected when the investment returns exceed predetermined benchmarks, incentivizing the company to achieve superior investment performance. The firm also engages in financial consultancy, providing advisory services for mergers and acquisitions, capital raising, and strategic planning, which further contributes to its revenue. Strategic partnerships with financial institutions and access to exclusive investment opportunities enhance its competitive edge and potential earnings. Overall, Leading Holdings' robust revenue model is supported by its diversified service offerings and a strong client base within the financial services ecosystem.

Leading Holdings Group Limited Financial Statement Overview

Summary

Leading Holdings Group Limited faces significant financial challenges across all areas. The income statement reflects severe declines in revenue and profitability, while the balance sheet shows high leverage and weak equity positions. Cash flow issues further exacerbate the situation, with negative free cash flow and poor cash conversion ratios. The company needs strategic adjustments to stabilize and improve its financial health.

Income Statement

The company has seen a significant decline in revenue from 2023 to 2024, with a negative revenue growth rate of -53.65%. Furthermore, the net profit margin and EBIT margin have been consistently negative, highlighting challenges in profitability. Gross profit margins have dramatically dropped as well, showcasing difficulties in maintaining revenue efficiency.

Balance Sheet

The debt-to-equity ratio is extremely high, indicating a high level of financial leverage and potential risk. The equity ratio is very low, suggesting limited equity in the company's asset structure. Return on equity is negative, pointing to a lack of profitability for shareholders.

Cash Flow

The company has shown a deterioration in free cash flow growth, as free cash flow turned negative in 2024. This is compounded by an operating cash flow to net income ratio that is unfavorable, given the negative net income. The free cash flow to net income ratio is also negative, indicating inefficiencies in cash generation relative to income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.57B	18.49B	13.98B	15.05B	13.16B
Gross Profit	114.14M	1.77B	-2.00B	2.91B	3.56B
EBITDA	-329.38M	501.02M	-3.98B	1.54B	2.36B
Net Income	-2.08B	-1.32B	-5.10B	488.45M	860.31M
Balance Sheet
Total Assets	22.62B	34.05B	54.02B	64.43B	60.07B
Cash, Cash Equivalents and Short-Term Investments	874.66M	1.31B	2.60B	4.30B	4.19B
Total Debt	5.19B	7.10B	9.08B	11.97B	14.27B
Total Liabilities	22.46B	31.41B	48.58B	53.60B	50.80B
Stockholders Equity	189.58M	2.27B	3.74B	7.88B	7.25B
Cash Flow
Free Cash Flow	-171.96M	269.81M	2.83B	5.50B	345.46M
Operating Cash Flow	-171.42M	285.77M	2.85B	5.52B	368.90M
Investing Cash Flow	1.53B	1.61B	144.03M	-2.34B	-3.17B
Financing Cash Flow	-1.80B	-3.18B	-4.69B	-3.06B	5.59B

Leading Holdings Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6999, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6999.

Leading Holdings Group Limited 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%
6999	49 Neutral	HK$120.15M	-0.05	―	―	-54.30%	-57.24%
0755	42 Neutral	HK$63.39M	-0.20	-61.82%	―	-46.78%	3.78%
1232	39 Underperform	HK$85.45M	-0.17	―	―	-69.85%	55.83%

Leading Holdings Group Limited Corporate Events

Leading Holdings Steps Up Asset Sales and Cost Controls Amid Going-Concern Pressure

Leading Holdings Group Limited has provided a quarterly update on measures to address its auditor’s disclaimer of opinion on going concern, detailing ongoing efforts to improve liquidity and its financial position. The company continues to negotiate with existing lenders for renewals or extensions of bank and other borrowings and is in talks with financial institutions about securing new loans or lowering interest costs, though no new financing, loan extensions or rate reductions were secured in the fourth quarter of 2025. To bolster cash flow, the group is pushing faster property sales, reporting unaudited contracted sales of about RMB2.27 billion from the start of 2025 to 30 November, while also tightening cost controls and speeding up collection of sales proceeds. It is additionally disposing of non-core assets, with a subsidiary selling four project development companies in Zhumadian for a combined appraisal value of RMB3.5 million to independent third parties, signaling an ongoing effort to generate cash and stabilize operations amid persistent funding pressure and auditor concerns about its ability to continue as a going concern.

Leading Holdings Group Faces Compliance Challenge After Key Resignation

Leading Holdings Group Limited has announced the resignation of Ms. Ma Wing Yee as the company secretary and an authorised representative. This resignation has led to non-compliance with certain listing rules on the Hong Kong Stock Exchange, as the company currently lacks a company secretary and the required number of authorised representatives. The company is actively seeking suitable candidates to fill these vacancies to ensure compliance with the listing rules.

Leading Holdings Faces Compliance Challenges Following Director Resignation

Leading Holdings Group Limited has announced the resignation of Mr. Zhang Guanghu from his roles as an independent non-executive director and chairperson of the audit committee, among other positions, effective December 1, 2025. This resignation has led to the company’s non-compliance with several Hong Kong Stock Exchange Listing Rules, including the requirement for a minimum number of independent directors and gender diversity on the board. The company is actively seeking a suitable replacement to address these compliance issues within three months.

Leading Holdings Group Limited Announces Board Composition

Leading Holdings Group Limited has announced the composition of its board of directors and their roles. Mr. Liu Yuhui serves as the Chairman and is a member of the Audit Committee and Chairperson of the Nomination Committee, while Mr. Luo Changlin is an Executive Director. This announcement clarifies the governance structure of the company, potentially impacting its strategic decision-making and stakeholder engagement.

Leading Holdings Group Limited Faces Continued Trading Suspension

Leading Holdings Group Limited has announced a quarterly update regarding the suspension of its trading on the Hong Kong Stock Exchange. The company is working to address the resumption guidance provided by the Stock Exchange, which includes publishing outstanding financial results and ensuring compliance with various listing rules. Despite efforts, no significant progress has been made in formulating a plan to re-comply with certain rules, and trading remains suspended since September 2025. The company faces potential delisting if the suspension continues for 18 months.

Leading Holdings Faces Trading Suspension Amid Compliance Challenges

Leading Holdings Group Limited has announced continued suspension of trading of its shares on the Hong Kong Stock Exchange due to a delay in publishing its 2025 Interim Results. The company has received resumption guidance from the Stock Exchange, which includes publishing outstanding financial results, demonstrating compliance with specific listing rules, and disclosing material information for shareholder assessment. The company must address these issues by February 28, 2027, to avoid potential delisting.