Annonce • Dec 30
Hongda Xingye Co., Ltd. to Report Fiscal Year 2023 Results on Apr 29, 2024 Hongda Xingye Co., Ltd. announced that they will report fiscal year 2023 results on Apr 29, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: CN¥0.11 loss per share (vs CN¥0.003 profit in 3Q 2022) Third quarter 2023 results: CN¥0.11 loss per share (down from CN¥0.003 profit in 3Q 2022). Revenue: CN¥270.7m (down 78% from 3Q 2022). Net loss: CN¥337.2m (down CN¥345.4m from profit in 3Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Annonce • Oct 19
Hongda Xingye Co., Ltd.(XSEC:002002) dropped from S&P Global BMI Index Hongda Xingye Co., Ltd.(XSEC:002002) dropped from S&P Global BMI Index New Risk • Oct 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 17% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (6.0% average weekly change). Reported Earnings • Aug 31
Second quarter 2023 earnings released: CN¥0.16 loss per share (vs CN¥0.057 profit in 2Q 2022) Second quarter 2023 results: CN¥0.16 loss per share (down from CN¥0.057 profit in 2Q 2022). Revenue: CN¥1.11b (down 33% from 2Q 2022). Net loss: CN¥478.4m (down 371% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Board Change • Aug 04
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Ruihao Liao was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Jun 13
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Ruihao Liao was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Annonce • May 06
Hongda Xingye Co., Ltd., Annual General Meeting, May 22, 2023 Hongda Xingye Co., Ltd., Annual General Meeting, May 22, 2023, at 15:00 China Standard Time. Agenda: To consider 2022 annual report and its summary; to consider 2022 work report of the board of directors; to consider 2022 work report of the supervisory committee; to consider 2022 annual accounts; to consider 2022 profit distribution plan; to consider Confirmation of 2022 continuing connected transactions of the Company and its subsidiaries and 2023 estimated continuing connected transactions; to consider 2022 special report on the deposit and use of raised funds; and to consider other matters. Reported Earnings • Apr 30
First quarter 2023 earnings released: EPS: CN¥0.001 (vs CN¥0.033 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.001 (down from CN¥0.033 in 1Q 2022). Revenue: CN¥834.2m (down 8.3% from 1Q 2022). Net income: CN¥1.96m (down 98% from 1Q 2022). Profit margin: 0.2% (down from 11% in 1Q 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Reported Earnings • Oct 31
Third quarter 2022 earnings released: EPS: CN¥0.003 (vs CN¥0.21 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.003 (down from CN¥0.21 in 3Q 2021). Revenue: CN¥1.25b (down 42% from 3Q 2021). Net income: CN¥8.24m (down 99% from 3Q 2021). Profit margin: 0.7% (down from 25% in 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Sep 02
Second quarter 2022 earnings released: EPS: CN¥0.057 (vs CN¥0.16 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.057 (down from CN¥0.16 in 2Q 2021). Revenue: CN¥1.67b (down 11% from 2Q 2021). Net income: CN¥176.4m (down 66% from 2Q 2021). Profit margin: 11% (down from 28% in 2Q 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥4.31, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 29x in the Chemicals industry in China. Total loss to shareholders of 2.9% over the past three years. Reported Earnings • May 02
First quarter 2022 earnings released: EPS: CN¥0.033 (vs CN¥0.099 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.033 (down from CN¥0.099 in 1Q 2021). Revenue: CN¥909.4m (down 45% from 1Q 2021). Net income: CN¥102.5m (down 62% from 1Q 2021). Profit margin: 11% (down from 16% in 1Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 5 independent directors (6 non-independent directors). Independent Director Ruihao Liao was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 19
Full year 2021 earnings released: EPS: CN¥0.33 (vs CN¥0.31 in FY 2020) Full year 2021 results: EPS: CN¥0.33 (up from CN¥0.31 in FY 2020). Revenue: CN¥6.52b (up 21% from FY 2020). Net income: CN¥851.8m (up 4.7% from FY 2020). Profit margin: 13% (down from 15% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.21 (vs CN¥0.098 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥2.14b (up 63% from 3Q 2020). Net income: CN¥538.4m (up 114% from 3Q 2020). Profit margin: 25% (up from 19% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥5.58, the stock trades at a trailing P/E ratio of 13.1x. Average trailing P/E is 31x in the Chemicals industry in China. Total returns to shareholders of 72% over the past three years. Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥6.35, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 32x in the Chemicals industry in China. Total returns to shareholders of 125% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.16 (vs CN¥0.055 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥1.89b (up 60% from 2Q 2020). Net income: CN¥521.9m (up 270% from 2Q 2020). Profit margin: 28% (up from 12% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥4.94, the stock trades at a trailing P/E ratio of 14.5x. Average trailing P/E is 31x in the Chemicals industry in China. Total returns to shareholders of 37% over the past three years. Reported Earnings • May 02
First quarter 2021 earnings released: EPS CN¥0.099 (vs CN¥0.074 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.64b (up 14% from 1Q 2020). Net income: CN¥269.4m (up 41% from 1Q 2020). Profit margin: 16% (up from 13% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥4.13, the stock trades at a trailing P/E ratio of 13.1x. Average trailing P/E is 36x in the Chemicals industry in China. Total loss to shareholders of 32% over the past three years. Reported Earnings • Apr 04
Full year 2020 earnings released: EPS CN¥0.31 (vs CN¥0.24 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥5.39b (up 1.8% from FY 2019). Net income: CN¥813.8m (up 29% from FY 2019). Profit margin: 15% (up from 12% in FY 2019). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 18% per year. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥3.72, the stock is trading at a trailing P/E ratio of 13.2x, up from the previous P/E ratio of 11.2x. This compares to an average P/E of 37x in the Chemicals industry in China. Total return to shareholders over the past three years is a loss of 43%. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥2.94 The company is down 26% from its price of CN¥3.95 on 09 October 2020. The Chinese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 18% over the same period. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment deteriorated over the past week After last week's 21% share price decline to CN¥3.09, the stock is trading at a trailing P/E ratio of 10.9x, down from the previous P/E ratio of 13.8x. This compares to an average P/E of 37x in the Chemicals industry in China. Total return to shareholders over the past three years is a loss of 53%. Is New 90 Day High Low • Dec 15
New 90-day low: CN¥3.42 The company is down 19% from its price of CN¥4.24 on 16 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 5.0% over the same period. Is New 90 Day High Low • Nov 25
New 90-day high: CN¥4.28 The company is up 9.0% from its price of CN¥3.92 on 27 August 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 11% over the same period. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥726.8m, up 67% from the prior year. Total revenue was CN¥5.17b over the last 12 months, down 10% from the prior year. Is New 90 Day High Low • Oct 28
New 90-day low: CN¥3.69 The company is down 6.0% from its price of CN¥3.91 on 30 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 3.0% over the same period. 
