Ziyuanyuan Holdings Group Ltd. (8223) AI Stock Analysis

• Market Cap: HK$266.60M
• Dividend Yield: N/A
• Average Volume (3M): 534.53K
• Price to Earnings (P/E): 44.7
• Beta (1Y): 0.38
• Revenue Growth: 12.33%
• EPS Growth: -475.85%
• Country: HK
• Employees: 125
• Sector: Healthcare
• Sector Strength: 45
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 430,000,000
• 10 Day Avg. Volume: 315,200
• 30 Day Avg. Volume: 534,533
• PEG Ratio: 0.03
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -3.48
• 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: 56 Neutral
• Price Target: HK$0.86 ▲(103.57% Upside)
• Action: Reiterated Date: 01/17/26
• Date: Action: Reiterated 01/17/26

The score is held back primarily by weak cash generation (zero operating/free cash flow) and the shift to negative profitability/ROE despite strong reported operating margins. Technicals are mixed—short-term strength but overbought signals and a weaker long-term trend—while valuation is pressured by losses (negative P/E) and no dividend support.

Positive Factors

Operational margins

Extremely high gross and EBIT margins point to strong cost efficiency and operating leverage in core activities. Over a 2–6 month horizon this structural efficiency supports resilience to revenue swings, enables reinvestment or pricing flexibility, and underpins long-term margin sustainability if net losses are addressed.

Conservative leverage

A low debt-to-equity ratio provides durable financial resilience, reducing interest burden and default risk. For a credit-services business this conservative capital structure preserves capacity to originate or hold assets through cycles, offers funding optionality, and supports strategic investments without over-reliance on external debt.

Reported revenue growth (fundamentals)

Reported double-digit revenue growth in the fundamentals suggests the company can expand its top line and gain market share over time. Sustained revenue growth provides a structural base to scale operations, spread fixed costs, and improve long-term profitability if cash conversion and net income trends normalize.

Negative Factors

Negative profitability

A negative net margin combined with a sharply negative ROE signals that the business is currently destroying shareholder value. Persisting losses erode equity, restrict reinvestment capacity, and can necessitate restructuring or capital raises; reversing this is essential for durable financial health and investor confidence.

Zero operating/free cash flow

The absence of operating and free cash flow indicates the firm is not generating cash from core operations, limiting ability to service liabilities, fund growth, or absorb shocks. Over months this structural cash-generation weakness raises reliance on external financing and threatens sustainability of investment or dividend policies.

Top-line weakness

A slight decline in revenue points to weakening demand or reduced origination/fee activity in the core credit business. Without a clear and sustained recovery in top-line trends, the firm's strong operating margins may not translate into improved net results or cash flow, constraining long-term growth and competitiveness.

Ziyuanyuan Holdings Group Ltd. Business Overview & Revenue Model

Company Description

Ziyuanyuan Holdings Group Limited, an investment holding company, provides medical equipment finance leasing services in the People's Republic of China. It operates through Finance Leasing, Postpartum Care Services, and Trading of Medical Equipment and Consumables segments. The company offers sale-leaseback and direct finance leasing services to medium, small, and micro-sized enterprises in the printing, logistics, and transportation industries. It also provides maternal and child postpartum care industry services; technological services; and money lending services, as well as trades in equipment. The company was founded in 2014 and is headquartered in Shenzhen, the People's Republic of China. Ziyuanyuan Holdings Group Limited is a subsidiary of Hero Global Limited.

How the Company Makes Money

Ziyuanyuan Holdings Group Ltd. generates revenue through multiple streams, primarily from property sales and leasing in its real estate segment. The company develops residential and commercial properties, selling units to homebuyers and leasing spaces to businesses for a steady income. Additionally, Ziyuanyuan invests in various sectors, including technology and consumer products, which contribute to its earnings through capital appreciation and dividends. Strategic partnerships with local developers and industry leaders enhance its market position and provide access to new opportunities, further bolstering its revenue potential.

Ziyuanyuan Holdings Group Ltd. Financial Statement Overview

Summary

Income statement shows strong gross and EBIT margins but profitability has deteriorated with net margin turning negative (-10.66%). Balance sheet leverage is conservative (debt-to-equity 0.25) and equity base is solid (equity ratio 49.62%), but ROE has flipped negative (-17.69%). Cash flow is a key weakness with operating and free cash flow at zero, raising liquidity and sustainability concerns.

Income Statement

The company's revenue has been stable with a slight decrease from the previous year, resulting in a revenue growth rate of -0.21%. Despite the decrease in revenue, the gross profit margin remains strong at 100%, indicating cost-efficient operations. However, the net profit margin has turned negative to -10.66% from a positive margin last year, reflecting financial pressures. The EBIT margin is impressive at 94.43%, showcasing effective operational management.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.25, indicating conservative leverage use. The return on equity has reversed to -17.69% from the previous positive figures, suggesting recent profitability challenges. The equity ratio stands at 49.62%, denoting a balanced capital structure with substantial equity financing.

Cash Flow

The cash flow scenario has shown weakness with the operating and free cash flow being zero, indicating potential liquidity issues. The lack of positive free cash flow growth and operating cash flow suggests difficulties in generating cash from core operations, which may impact financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	523.49M	552.27M	497.95M	324.60M	119.44M	58.51M
Gross Profit	523.49M	56.60M	78.18M	89.95M	65.93M	36.48M
EBITDA	0.00	-40.23M	29.63M	38.24M	25.74M	21.78M
Net Income	-52.26M	-52.97M	14.56M	15.81M	5.49M	12.98M
Balance Sheet
Total Assets	648.70M	603.51M	615.16M	602.28M	532.75M	439.61M
Cash, Cash Equivalents and Short-Term Investments	21.41M	12.96M	108.26M	14.55M	68.81M	84.81M
Total Debt	251.56M	210.48M	143.66M	246.27M	204.35M	110.95M
Total Liabilities	333.74M	301.42M	299.87M	291.46M	228.43M	136.30M
Stockholders Equity	312.43M	299.48M	312.45M	306.86M	299.52M	302.37M
Cash Flow
Free Cash Flow	-102.89M	-183.89M	171.63M	-50.56M	28.63M	45.01M
Operating Cash Flow	-102.45M	-183.45M	173.25M	-42.64M	30.17M	58.78M
Investing Cash Flow	22.77M	14.21M	-3.41M	-15.89M	-50.34M	-20.13M
Financing Cash Flow	43.17M	71.21M	-124.14M	1.03M	58.95M	23.87M

Ziyuanyuan Holdings Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 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:8223, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.66, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8223.

Ziyuanyuan Holdings Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1577	80 Outperform	HK$714.00M	7.26	6.53%	5.46%	-24.04%	60.24%
1669	71 Outperform	HK$380.00M	2.62	5.24%	5.43%	-1.47%	2.86%
1601	64 Neutral	HK$1.37B	2.30	9.82%	7.43%	1.11%	3.98%
6866	64 Neutral	HK$430.70M	4.23	2.79%	4.88%	-12.94%	-15.93%
8223	56 Neutral	HK$266.60M	44.72	-17.08%	―	12.33%	-475.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%