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China International Development Corporation Limited (HK:0264)
:0264
Hong Kong Market
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China International Development Corporation Limited (0264) AI Stock Analysis

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HK:0264

China International Development Corporation Limited

(0264)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
HK$3.00
▲(36.99% Upside)
The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and high leverage. Despite strong technical indicators suggesting short-term bullish momentum, the poor valuation and financial instability pose significant risks.

China International Development Corporation Limited (0264) vs. iShares MSCI Hong Kong ETF (EWH)

China International Development Corporation Limited Business Overview & Revenue Model

Company DescriptionChina International Development Corporation Limited, an investment holding company, manufactures and distributes leather products in Hong Kong, the United States, Europe, and internationally. The company operates in two segments, Leather Manufacturing Business and Leather Retail Business. It also retails fashion apparel, footwear, and leather accessories. In addition, the company engages in industrial hemp planting; hemp fabric product production; and logistics and warehouse operations businesses. As of December 31, 2021, it operated four retail stores under the AREA 0264 name and one Teepee leather workshop. The company was formerly known as Ascent International Holdings Limited and changed its name to China International Development Corporation Limited in December 2019. The company was incorporated in 2002 and is headquartered in Central, Hong Kong. China International Development Corporation Limited is a subsidiary of Waterfront Holding Group Co., Ltd.
How the Company Makes MoneyThe company primarily makes money through its diversified investment portfolio, which includes property investments, trading activities, and financial services. Revenue is generated from rental incomes from its property investments, trading of goods and commodities, and financial services provided to its clients. Additionally, the company may engage in strategic partnerships and joint ventures to enhance its revenue streams and expand its market presence.

China International Development Corporation Limited Financial Statement Overview

Summary
The company is facing significant financial challenges, with declining revenues, persistent losses, and a highly leveraged balance sheet. Negative equity and cash flow issues highlight insolvency risks, necessitating strategic restructuring.
Income Statement
25
Negative
The company has experienced a significant decline in revenue over the years, with a negative revenue growth rate of -27.5% from 2023 to 2024. The gross profit margin has decreased to 30.1% in 2024 from 18.8% in 2023. Net profit margin remains negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in managing costs.
Balance Sheet
20
Very Negative
The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, but the high level of debt relative to assets suggests significant leverage. The equity ratio is negative, further highlighting financial instability.
Cash Flow
30
Negative
The company has consistently negative free cash flow, though there is a slight improvement in operating cash flow from 2023 to 2024. The free cash flow to net income ratio is not favorable, indicating challenges in converting net income into cash. Financing activities have been necessary to cover cash shortfalls.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.96M30.30M56.04M49.19M39.77M
Gross Profit6.60M5.68M10.26M9.82M11.93M
EBITDA-11.33M-20.59M-12.43M-13.97M-16.08M
Net Income-17.06M-27.91M-20.66M-22.75M-28.10M
Balance Sheet
Total Assets10.88M14.03M30.58M41.19M32.09M
Cash, Cash Equivalents and Short-Term Investments829.00K997.00K2.50M1.47M2.28M
Total Debt41.04M44.63M46.18M39.76M18.65M
Total Liabilities72.90M73.36M76.60M71.72M42.98M
Stockholders Equity-62.01M-59.33M-46.02M-30.54M-10.89M
Cash Flow
Free Cash Flow-6.44M-10.94M-3.61M-11.47M-9.90M
Operating Cash Flow-6.44M-10.87M-3.58M-5.41M-8.29M
Investing Cash Flow1.00K-58.00K-29.00K-5.63M-2.08M
Financing Cash Flow6.65M9.42M4.73M9.92M-3.66M

China International Development Corporation Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.19
Price Trends
50DMA
1.86
Positive
100DMA
1.75
Positive
200DMA
1.90
Positive
Market Momentum
MACD
0.12
Positive
RSI
49.04
Neutral
STOCH
21.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0264, the sentiment is Neutral. The current price of 2.19 is below the 20-day moving average (MA) of 2.51, above the 50-day MA of 1.86, and above the 200-day MA of 1.90, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0264.

China International Development Corporation Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
920.05M7.4014.95%4.30%0.00%0.00%
70
Outperform
884.80M4.5217.46%8.86%6.92%4.74%
69
Neutral
639.46M7.835.11%5.37%23.17%-7.30%
49
Neutral
730.61M64.550.00%1.97%-16.46%-87.89%
48
Neutral
737.96M-66.01-1.39%0.99%-33.72%-550.00%
47
Neutral
HK$978.36M
41.54%51.03%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0264
China International Development Corporation Limited
2.17
0.87
66.92%
DPNEF
Daphne International Holdings
0.06
0.04
200.00%
HK:1100
Mainland Headwear Holdings
1.49
0.03
2.05%
HK:1731
Prosperous Industrial (Holdings) Ltd.
0.79
0.16
25.40%
HK:2033
Time Watch Investments Ltd.
0.36
-0.01
-2.70%
HK:0676
Pegasus International Holdings Limited
1.01
0.27
36.49%

China International Development Corporation Limited Corporate Events

China International Development Corporation Limited Announces Board Composition
Jul 8, 2025

China International Development Corporation Limited has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The company has also detailed the membership of its board committees, highlighting the roles and responsibilities of each director. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

China International Development Corporation Appoints New Independent Directors
Jul 8, 2025

China International Development Corporation Limited has announced the appointment of Ms. Ye Duan and Mr. Peng Zuoquan as independent non-executive directors, effective from July 8, 2025. This move is part of the company’s efforts to re-comply with listing rules, potentially enhancing its governance structure and market credibility. Both appointees bring extensive experience in financial management and marketing, respectively, which could positively impact the company’s strategic direction and stakeholder confidence.

China International Development Corporation Updates Nomination Committee Terms
Jun 30, 2025

China International Development Corporation Limited has updated the terms of reference for its Nomination Committee, which was originally established in 2005. The committee is responsible for reviewing the board’s structure, identifying qualified board members, and implementing the Board Diversity Policy. This revision aims to enhance the company’s governance by ensuring a diverse and well-composed board, which is crucial for aligning with corporate strategy and maintaining effective oversight.

China International Development Corporation Achieves Unanimous Approval at AGM
Jun 3, 2025

China International Development Corporation Limited successfully held its Annual General Meeting on June 3, 2025, where all proposed resolutions were passed unanimously. The resolutions included the re-election of several directors, the re-appointment of the company’s auditor, and the granting of mandates to the board for share allotment and repurchase, reflecting strong shareholder support and confidence in the company’s leadership and strategic direction.

China International Development Corporation’s Placing Agreement Lapses
May 26, 2025

China International Development Corporation Limited announced the lapse of its Placing Agreement due to unmet conditions by the closing date, May 23, 2025. As a result, the agreement did not become unconditional, and all obligations between the company and the Placing Agent have ceased, with no claims against each other, except for the reimbursement of incurred expenses up to HK$100,000.

China International Development Corporation Explores Hydrogen JV with CIMC GH2
May 19, 2025

China International Development Corporation Limited announced a strategic framework agreement through its subsidiary, Flex Fuel Hydrogen Development (Shenzhen) Company Limited, with CIMC GH2 Technology Ltd. This agreement involves the potential formation of a joint venture focused on hydrogen generation technology in China. The collaboration aims to test technology and trial production of anion exchange membrane electrolyzers, with the joint venture to be held 51% by the subsidiary and 49% by the strategic partner. This move could enhance the company’s positioning in the green hydrogen sector, leveraging the strategic partner’s expertise in green hydrogen technology and equipment manufacturing.

China International Development Clarifies Share Placement Pricing
May 7, 2025

China International Development Corporation Limited has announced a clarification regarding the placing of new shares under a general mandate. The company specified that the placing price of HK$1.78 per share represents a discount of approximately 10.28% compared to the average closing price of HK$1.984 over the last five trading days prior to the placing agreement. This announcement aims to provide transparency and ensure stakeholders are informed about the pricing strategy related to the new share placement.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025