Leading Holdings Group Limited (6999) AI Stock Analysis

• Market Cap: €120.15M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% 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	493.41M	-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: Negative
• 100DMA: Positive
• 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 neutral 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	€120.15M	-0.05	―	―	-54.30%	-57.24%
0755	40 Underperform	HK$69.64M	-0.22	-61.82%	―	-46.78%	3.78%
1232	38 Underperform	HK$87.25M	―	―	―	-69.85%	55.83%

Leading Holdings Group Limited Corporate Events

Leading Holdings Group Limited Updates on Financial Strategy Amid Auditor Concerns

Leading Holdings Group Limited has announced an update on its plans to improve liquidity and resolve a disclaimer of opinion by its auditors regarding the company’s going concern status. The company is negotiating with lenders for loan renewals, seeking new financing options, and implementing strategies to accelerate property sales and manage costs. However, as of the latest update, no significant progress has been made in securing new loans or reducing interest rates, and the company continues to seek opportunities to dispose of equity interests and settle outstanding litigations.

Leading Holdings Faces Compliance Challenges After Director Resignation

Leading Holdings Group Limited has announced the resignation of Mr. Fang Min from his role as an independent non-executive director and member of the audit committee due to personal health issues. This resignation has led to non-compliance with several Hong Kong Stock Exchange Listing Rules, including the requirement for a minimum number of independent non-executive directors and committee members. The company is actively seeking a replacement to address these compliance issues within the stipulated timeframe.

Leading Holdings Group Limited Announces Board Composition

Leading Holdings Group Limited has announced the composition of its board of directors and their roles within the company. The board consists of executive directors Mr. Liu Yuhui and Mr. Luo Changlin, along with independent non-executive director Mr. Zhang Guanghu. The announcement also details the structure of the company’s board committees, highlighting Mr. Liu Yuhui as the chairperson of the Nomination Committee and Mr. Zhang Guanghu as the chairperson of the Audit Committee. This update reflects the company’s commitment to transparent governance and may influence its strategic direction and stakeholder confidence.

Leading Holdings Group Faces Delays in Interim Results and Trading Suspension

Leading Holdings Group Limited has announced a delay in the publication of its interim results for the first half of 2025, as well as a potential delay in dispatching its interim report to shareholders. This delay is attributed to recent resignations within the company’s finance department, which have impacted the preparation of financial documents. Consequently, the company’s board meeting has been postponed, and trading of its shares on the Hong Kong Stock Exchange will be suspended until the financial information is published. Shareholders and investors are advised to exercise caution.

Leading Holdings Group to Review Interim Results and Dividend Plans

Leading Holdings Group Limited has announced a board meeting scheduled for August 29, 2025, to review and approve the interim financial results for the first half of 2025 and discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.