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China Rongzhong Financial Holdings Company Limited
(3963)
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Rating:46Neutral
Price Target:
HK$0.13
▼(-0.77% Downside)
Action:Reiterated
Date:10/09/26
The score is primarily held back by weak financial performance—ongoing net losses alongside a stressed, highly levered balance sheet with a shrinking equity buffer. Technical indicators provide only partial support (short-term strength versus long-term downtrend), and valuation is constrained by negative earnings and no provided dividend yield.
Positive Factors
Positive Operating Cash Flow
Consistently positive operating cash flow of roughly 17–30M across FY2023–FY2026 shows that core activities generate cash despite reported losses. This provides some recurring internal funding capacity and is a durable buffer for a financing business, even though it does not fully cover investment needs.
Negative Factors
High and Rising Leverage
Debt-to-equity increased to about 6.2x in FY2026 from 3.0x, while ROE was approximately -109%. This combination of rising leverage, shrinking equity and persistent losses leaves a thin capital buffer, reduces financial flexibility, and heightens vulnerability to credit or operating setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Operating Cash Flow
Consistently positive operating cash flow of roughly 17–30M across FY2023–FY2026 shows that core activities generate cash despite reported losses. This provides some recurring internal funding capacity and is a durable buffer for a financing business, even though it does not fully cover investment needs.
Read all positive factors
China Rongzhong Financial Holdings Company Limited (3963) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$67.36M
Dividend YieldN/A
Average Volume (3M)11.00K
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue Growth1.99%
EPS Growth-21.32%
CountryHK
Employees115
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding606,802,550
10 Day Avg. Volume21,000
30 Day Avg. Volume11,000
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)10.78
Price to Sales (P/S)1.16
P/FCF Ratio-11.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China Rongzhong Financial Holdings Company Limited Business Overview & Revenue Model
Company Description
China Rongzhong Financial Holdings Company Limited, an investment holding company, provides financial leasing services in China, Hong Kong, and Singapore. The company focuses on financing the needs of SMEs in Hubei province. It also provides finan...
How the Company Makes Money
The company generates revenue primarily by providing financing-related services and earning service fees and interest-type income associated with those activities. Key revenue streams include (1) income from entrusted loan arrangements, where the ...
China Rongzhong Financial Holdings Company Limited Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
45
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 85.16M | 69.42M | 89.00M | 51.06M | 35.12M |
| Gross Profit | 24.88M | 540.00K | 18.95M | 51.06M | 10.45M |
| EBITDA | 13.36M | 10.34M | 9.61M | 12.52M | -532.20M |
| Net Income | -10.04M | -8.11M | -9.62M | -124.61M | -567.55M |
Balance Sheet | |||||
| Total Assets | 81.82M | 85.55M | 84.69M | 93.64M | 433.92M |
| Cash, Cash Equivalents and Short-Term Investments | 10.28M | 7.97M | 6.97M | 14.57M | 15.48M |
| Total Debt | 56.77M | 51.21M | 40.03M | 62.71M | 778.64M |
| Total Liabilities | 68.13M | 67.58M | 66.95M | 118.64M | 1.13B |
| Stockholders Equity | 9.17M | 17.34M | 18.46M | -31.29M | -701.43M |
Cash Flow | |||||
| Free Cash Flow | -8.26M | -12.74M | -15.06M | 473.00K | -6.45M |
| Operating Cash Flow | 17.54M | 18.64M | 22.72M | 29.82M | 2.70M |
| Investing Cash Flow | -14.86M | -19.98M | -25.59M | -12.67M | 2.05M |
| Financing Cash Flow | -814.00K | 2.09M | -4.04M | -18.87M | -2.56M |
China Rongzhong Financial Holdings Company Limited Technical Analysis
Positive
0.13
Price Trends
0.12
Positive
0.13
Negative
0.14
Negative
Market Momentum
>-0.01
Negative
60.79
Neutral
64.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3963, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.79 is Neutral, neither overbought nor oversold. The STOCH value of 64.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3963.
China Rongzhong Financial Holdings Company Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$584.00M | 12.39 | 4.89% | 8.04% | -17.07% | -5.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | HK$300.90M | 4.65 | 2.66% | 5.45% | -2.05% | 14.16% | |
53 Neutral | HK$593.05M | -0.67 | -19.32% | 20.49% | -32.03% | -235.24% | |
46 Neutral | HK$67.36M | -8.00 | -87.70% | ― | 1.99% | -21.32% | |
46 Neutral | HK$82.29M | -1.34 | -13.09% | 4.37% | -76.61% | -529.32% |
* Financial Sector Average
HK:3963
China Rongzhong Financial Holdings Company Limited
0.13
-0.11
-45.00%
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-30.61%
China Rongzhong Financial Holdings Company Limited Corporate Events
China Rongzhong Extends Maturity of HK$4.24 Million Promissory Notes
Sep 30, 2026
China Rongzhong Financial Holdings has amended the terms of two promissory notes issued to Solomon Glory, a wholly owned subsidiary of controlling shareholder Goldbond, in connection with a prior acquisition settlement. The notes, carrying an aggr...
China Rongzhong Wins Unanimous Shareholder Backing at 2026 AGM
Sep 9, 2026
China Rongzhong Financial Holdings reported that all ordinary resolutions put to shareholders at its 9 September 2026 annual general meeting were approved by poll, with all directors attending in person or electronically. Shareholders adopted the ...
China Rongzhong Sets AGM to Seek Fresh Capital and Buyback Mandates
Jul 23, 2026
China Rongzhong Financial Holdings has called its annual general meeting for 9 September 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 March 2026 and consider the re-election of one execut...
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.