Xinji Shaxi Group Co., Ltd. (3603) AI Stock Analysis

• Market Cap: HK$64.20M
• Dividend Yield: N/A
• Average Volume (3M): 160.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -10.34%
• EPS Growth: -94.87%
• Country: HK
• Employees: 256
• Sector: Real Estate
• Sector Strength: 70
• Industry: Real Estate - Services
• EPS (TTM): -0.05
• Shares Outstanding: 1,492,944,000
• 10 Day Avg. Volume: 90,900
• 30 Day Avg. Volume: 160,500
• PEG Ratio: 0.09
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.57
• 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

• Rating: 36 Underperform
• Price Target: ―

Xinji Shaxi Group Co., Ltd. is facing significant financial difficulties, with persistent losses and cash flow issues heavily impacting its financial stability. The technical indicators reflect bearish market sentiment and a downtrend in stock price. The valuation metrics also highlight concerns over profitability and lack of dividends, making the stock less attractive to investors.

Xinji Shaxi Group Co., Ltd. Business Overview & Revenue Model

Company Description

Xinji Shaxi Group Co., Ltd, an investment holding company, operates and manages hospitality supplies and home furnishing shopping malls in the People's Republic of China. The company operates five shopping malls, including three shopping malls for hospitality supplies and two shopping malls for home furnishings. It also rents hospitality supplies; provides exhibition management services; and operates an online shopping mall. The company was founded in 2002 and is headquartered in Guangzhou, China.

How the Company Makes Money

Xinji Shaxi Group Co., Ltd. generates revenue primarily through the manufacturing and sale of textile products. The company operates production facilities where it processes raw materials into finished textile goods, which are then sold to wholesalers, retailers, and directly to consumers. Key revenue streams include bulk sales to retail partners, direct consumer sales through owned outlets or online platforms, and potential export operations to international markets. The company's earnings are significantly influenced by its ability to maintain efficient production processes, manage supply chain logistics, and respond to market demand fluctuations effectively. Strategic partnerships with suppliers and distributors also play a crucial role in ensuring a steady flow of materials and products, contributing to the company's overall profitability.

Xinji Shaxi Group Co., Ltd. Financial Statement Overview

Summary

Xinji Shaxi Group Co., Ltd. faces significant financial challenges, particularly in generating profits and managing cash flows. The income statement shows persistent losses, the balance sheet indicates high leverage, and cash flow has deteriorated. These factors pose risks to financial stability and long-term sustainability.

Income Statement

The company has experienced a decline in revenue over the years, with a negative revenue growth rate of approximately -6.8% from 2023 to 2024. The net profit margin is negative, reflecting ongoing losses, and both EBIT and EBITDA margins are also negative, indicating operational challenges. The gross profit margin remains high but is overshadowed by large operating losses.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio, with total debt significantly impacting equity. The equity ratio remains relatively stable, indicating some level of asset backing, yet the return on equity is negative due to consistent net losses. Cash reserves have improved, suggesting some liquidity, but overall leverage remains a concern.

Cash Flow

The cash flow statement reveals weak free cash flow growth, with zero free cash flow reported in 2024 compared to previous years. The operating cash flow to net income ratio is not calculable due to zero operating cash flow in the latest period, highlighting cash generation issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
254.79M	273.37M	298.42M	267.54M	287.94M
	Gross Profit
254.79M	230.16M	250.71M	240.76M	261.12M
	EBIT
-148.12M	-33.09M	201.10M	185.73M	118.89M
	EBITDA
0.00	-23.14M	-150.91M	-206.73M	121.63M
	Net Income Common Stockholders
-162.31M	-79.99M	-167.43M	-214.93M	32.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
582.50M	513.01M	314.48M	249.33M	182.50M
	Total Assets
2.67B	2.93B	2.83B	3.10B	3.29B
	Total Debt
574.42M	1.10B	897.13M	901.45M	802.38M
	Net Debt
-8.08M	582.29M	582.66M	652.12M	619.89M
	Total Liabilities
1.49B	1.60B	1.42B	1.42B	1.39B
	Stockholders Equity
1.18B	1.34B	1.42B	1.68B	1.90B
Cash Flow		Free Cash Flow
0.00	123.15M	128.72M	112.47M	49.72M
	Operating Cash Flow
0.00	134.01M	137.14M	114.47M	52.67M
	Investing Cash Flow
0.00	-45.57M	-52.62M	-146.95M	-127.36M
	Financing Cash Flow
0.00	110.18M	-18.65M	100.02M	-14.40M

Xinji Shaxi Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3603, the sentiment is Negative. The current price of 0.04 is equal to the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.41 is Neutral, neither overbought nor oversold. The STOCH value of -20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3603.

Xinji Shaxi Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.84B	10.85	0.42%	9.90%	5.94%	-21.26%
3603	36 Underperform	HK$64.20M	―	-12.92%	―	-10.34%	-94.87%
CJRCF		$1.49B	31.56	0.79%	1.18%	―	―
CRBJF		$25.57B	6.17	9.66%	1.41%	―	―
WRFRF		$8.20B	71.54	0.47%	0.73%	―	―
1030	59 Neutral	HK$16.89B	29.93	1.07%	―	-26.43%	―

Xinji Shaxi Group Co., Ltd. Corporate Events

Xinji Shaxi Group Announces Upcoming Annual General Meeting

Xinji Shaxi Group Co., Ltd. has announced its upcoming annual general meeting, scheduled for May 30, 2025, in Foshan City, Guangdong Province. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, the re-election of certain directors, and the re-appointment of CCTH CPA Limited as the independent auditor. Additionally, the meeting will consider authorizing the board to allot and issue additional shares, subject to certain conditions. This announcement is significant as it outlines the company’s governance and strategic decisions, impacting shareholders and stakeholders by potentially influencing the company’s future financial and operational directions.

Xinji Shaxi Group Reports Increased Losses Amidst Declining Revenue

Xinji Shaxi Group Co., Ltd. announced its audited annual results for the year ended 31 December 2024, reporting a revenue of RMB 254,789,000, a decrease from the previous year. The company experienced a significant loss for the year, amounting to RMB 162,123,000, which was attributed to fair value losses on investment properties and increased finance expenses. Despite the loss, the core net profit margin remained relatively stable, indicating some resilience in the company’s core operations.

Xinji Shaxi Group Schedules Board Meeting to Approve Annual Results

Xinji Shaxi Group Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to approve the audited annual results for the year ending December 31, 2024, and to consider dividend payments. This meeting is crucial for stakeholders as it will determine the financial health and potential shareholder returns of the company.

Xinji Shaxi Group Issues Profit Warning Amid Increased Property Valuation Losses

Xinji Shaxi Group Co., Ltd. has issued a profit warning, indicating that the loss attributable to shareholders for the financial year 2024 is expected to increase significantly to not more than RMB165.0 million, compared to RMB80.0 million in 2023. This increase is primarily due to a fair value loss on investment properties, notably the decreased valuation of the company’s malls due to shortened lease terms. However, the core net profit, excluding non-recurring items, is expected to decrease by no more than RMB10.0 million, reflecting a relatively stable operational performance.