New Risk • Jun 01
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 31% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. 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). Share price has been highly volatile over the past 3 months (31% average weekly change). High level of non-cash earnings (68% accrual ratio). Minor Risk Market cap is less than US$100m (CN¥76.3m market cap, or US$11.3m). Board Change • Jun 01
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Jun Xun Dai was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Jun 01
Hubei Huarong Holding Co.,Ltd., Annual General Meeting, Jun 22, 2026 Hubei Huarong Holding Co.,Ltd., Annual General Meeting, Jun 22, 2026, at 15:00 China Standard Time. Location: Building 3, Kaide Center, Shendun 1st Road, Hongshan District, Wuhan, Hubei China Reported Earnings • May 01
First quarter 2026 earnings released: EPS: CN¥0.037 (vs CN¥0.01 loss in 1Q 2025) First quarter 2026 results: EPS: CN¥0.037 (up from CN¥0.01 loss in 1Q 2025). Revenue: CN¥60.1m (up 200% from 1Q 2025). Net income: CN¥7.33m (up CN¥8.36m from 1Q 2025). Profit margin: 12% (up from net loss in 1Q 2025). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 26% per year, which means it is significantly lagging earnings. New Risk • May 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. 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). High level of non-cash earnings (68% accrual ratio). Board Change • Apr 05
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Jun Xun Dai was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Mar 30
Hubei Huarong Holding Co.,Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Hubei Huarong Holding Co.,Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Jan 07
Hainan Bocheng Huineng Technology Center (Limited Partnership) cancelled the acquisition of 25.01`% stake in Hubei Huarong Holding Co.,Ltd. (SHSE:600421) from Shanghai Tianji Investment Co., Ltd. and Zhejiang HengShun Investment Co., Ltd. Hainan Bocheng Huineng Technology Center (Limited Partnership) signed a Share Transfer Agreement to acquire 25.01`% stake in Hubei Huarong Holding Co.,Ltd. (SHSE:600421) from Shanghai Tianji Investment Co., Ltd. and Zhejiang HengShun Investment Co., Ltd. for CNY 450 million on August 11, 2025. A cash consideration valued at CNY 9.21 per share will be paid by Hainan Bocheng Huineng Technology Center (Limited Partnership). As part of consideration, CNY 450.41 million is paid towards common equity of Hubei Huarong Holding Co.,Ltd. Upon completion, Hainan Bocheng Huineng Technology Center (Limited Partnership) will hold 25.01% stake while Shanghai Tianji Investment Co., Ltd. will hold 6.95% stake in Hubei Huarong Holding Co.,Ltd.
Hainan Bocheng Huineng Technology Center (Limited Partnership) cancelled the acquisition of 25.01`% stake in Hubei Huarong Holding Co.,Ltd. (SHSE:600421) from Shanghai Tianji Investment Co., Ltd. and Zhejiang HengShun Investment Co., Ltd. on January 5, 2026. As Part of termination, Hainan Bocheng Huineng Technology Center (Limited Partnership) shall pay a penalty of 10% of the total consideration payable for the share transfer, of which CNY 35.1 million shall be paid to Zhejiang HengShun Investment Co., Ltd and CNY 9.9 million shall be paid to Shanghai Tianji Investment Co., Ltd. Announcement • Dec 26
Hubei Huarong Holding Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 30, 2026 Hubei Huarong Holding Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 30, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.006 (vs CN¥0.003 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.006 (up from CN¥0.003 in 3Q 2024). Revenue: CN¥53.4m (up 66% from 3Q 2024). Net income: CN¥1.42m (up 141% from 3Q 2024). Profit margin: 2.7% (up from 1.8% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Sep 30
Hubei Huarong Holding Co.,Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Hubei Huarong Holding Co.,Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Reported Earnings • Sep 02
Second quarter 2025 earnings released: CN¥0.01 loss per share (vs CN¥0.014 loss in 2Q 2024) Second quarter 2025 results: CN¥0.01 loss per share (improved from CN¥0.014 loss in 2Q 2024). Revenue: CN¥35.6m (up 59% from 2Q 2024). Net loss: CN¥2.51m (loss narrowed 8.9% from 2Q 2024). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Jun 30
Hubei Huarong Holding Co.,Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Hubei Huarong Holding Co.,Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 Announcement • May 07
Hubei Huarong Holding Co.,Ltd. (SHSE:600421) agreed to acquire an additional 34% stake in Zhejiang Zhuangchen Construction Technology Co., Ltd. from Hangzhou Dingyou Investment Partnership Enterprise (Limited Partnership) and Shanghai Qinglan Investment Partnership Enterprise (Limited Partnership) for CNY 19.7 million. Hubei Huarong Holding Co.,Ltd. (SHSE:600421) agreed to acquire an additional 34% stake in Zhejiang Zhuangchen Construction Technology Co., Ltd. from Hangzhou Dingyou Investment Partnership Enterprise (Limited Partnership) and Shanghai Qinglan Investment Partnership Enterprise (Limited Partnership) for CNY 19.7 million on May 6, 2025. A cash consideration of CNY 19.73 million will be paid by Hubei Huarong Holding Co.,Ltd. As part of consideration, CNY 19.73 million is paid towards common equity of Zhejiang Zhuangchen Construction Technology Co., Ltd. Upon completion, Hubei Huarong Holding Co.,Ltd. will own 85% stake in Zhejiang Zhuangchen Construction Technology Co., Ltd. For the period ending December 31, 2024, Zhejiang Zhuangchen Construction Technology Co., Ltd. reported total revenue of CNY 117.17 million and net income of CNY 5.44 million. As of December 31, 2024, Zhejiang Zhuangchen Construction Technology Co., Ltd. reported total assets of CNY 151.85 million and total common equity of CNY 58.02 million. The transaction is subject to approval of offer by acquirer board. The deal has been approved by the board. Announcement • Apr 26
Hubei Huarong Holding Co.,Ltd., Annual General Meeting, May 19, 2025 Hubei Huarong Holding Co.,Ltd., Annual General Meeting, May 19, 2025, at 15:00 China Standard Time. Location: Building 3, Kaide Center, Shendun 1st Road, Hongshan District, Wuhan, Hubei China Announcement • Mar 28
Hubei Huarong Holding Co.,Ltd. to Report Q1, 2025 Results on Apr 26, 2025 Hubei Huarong Holding Co.,Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 New Risk • Jan 21
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 11% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 39% per year over the past 5 years. Announcement • Dec 27
Hubei Huarong Holding Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 Hubei Huarong Holding Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.003 (vs CN¥0.005 loss in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.003 (up from CN¥0.005 loss in 3Q 2023). Revenue: CN¥32.2m (down 3.0% from 3Q 2023). Net income: CN¥587.5k (up CN¥1.71m from 3Q 2023). Profit margin: 1.8% (up from net loss in 3Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Sep 30
Hubei Huarong Holding Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Hubei Huarong Holding Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 New Risk • Sep 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. 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). Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings have declined by 29% per year over the past 5 years. Reported Earnings • Aug 28
Second quarter 2024 earnings released: CN¥0.014 loss per share (vs CN¥0.004 loss in 2Q 2023) Second quarter 2024 results: CN¥0.014 loss per share (further deteriorated from CN¥0.004 loss in 2Q 2023). Revenue: CN¥22.5m (down 27% from 2Q 2023). Net loss: CN¥2.76m (loss widened 250% from 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Jun 28
Hubei Huarong Holding Co.,Ltd. to Report First Half, 2024 Results on Aug 28, 2024 Hubei Huarong Holding Co.,Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 New Risk • May 29
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. 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). Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 20% per year over the past 5 years. Announcement • Apr 29
Hubei Huarong Holding Co.,Ltd., Annual General Meeting, May 23, 2024 Hubei Huarong Holding Co.,Ltd., Annual General Meeting, May 23, 2024, at 15:00 China Standard Time. Location: Building 3, Kaide Center, Shendun 1st Road, Hongshan District, Wuhan, Hubei China Reported Earnings • Apr 26
First quarter 2024 earnings released: CN¥0.003 loss per share (vs CN¥0.009 loss in 1Q 2023) First quarter 2024 results: CN¥0.003 loss per share (improved from CN¥0.009 loss in 1Q 2023). Revenue: CN¥22.0m (down 16% from 1Q 2023). Net loss: CN¥582.7k (loss narrowed 65% from 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Mar 30
Hubei Huarong Holding Co.,Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Hubei Huarong Holding Co.,Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 New Risk • Feb 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. 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). Share price has been highly volatile over the past 3 months (8.5% average weekly change). Earnings have declined by 1.4% per year over the past 5 years. Announcement • Dec 29
Hubei Huarong Holding Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 25, 2024 Hubei Huarong Holding Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 25, 2024 New Risk • Nov 07
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. 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 1.4% per year over the past 5 years. New Risk • Oct 27
New major risk - Revenue and earnings growth Earnings have declined by 1.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Announcement • Sep 30
Hubei Huarong Holding Co.,Ltd. to Report Q3, 2023 Results on Oct 27, 2023 Hubei Huarong Holding Co.,Ltd. announced that they will report Q3, 2023 results on Oct 27, 2023 New Risk • Sep 12
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • Aug 30
Second quarter 2023 earnings released: CN¥0.004 loss per share (vs CN¥0.009 loss in 2Q 2022) Second quarter 2023 results: CN¥0.004 loss per share (improved from CN¥0.009 loss in 2Q 2022). Revenue: CN¥30.7m (up 41% from 2Q 2022). Net loss: CN¥788.0k (loss narrowed 67% from 2Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Announcement • Jun 28
Hubei Huarong Holding Co.,Ltd. to Report First Half, 2023 Results on Aug 30, 2023 Hubei Huarong Holding Co.,Ltd. announced that they will report first half, 2023 results on Aug 30, 2023 New Risk • Jun 27
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 7.3% 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 Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Share price has been volatile over the past 3 months (7.3% average weekly change). New Risk • Jun 22
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Board Change • Jun 19
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Director Jin Yong Wang was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 19
Full year 2022 earnings released: CN¥0.03 loss per share (vs CN¥0.05 loss in FY 2021) Full year 2022 results: CN¥0.03 loss per share (improved from CN¥0.05 loss in FY 2021). Revenue: CN¥125.2m (down 4.0% from FY 2021). Net loss: CN¥6.49m (loss narrowed 27% from FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
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. 3 experienced directors. 9 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Shu Liu was the last independent director to join the board, commencing their role in 2008. 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 • Oct 27
Third quarter 2022 earnings released: CN¥0.005 loss per share (vs CN¥0.011 loss in 3Q 2021) Third quarter 2022 results: CN¥0.005 loss per share (improved from CN¥0.011 loss in 3Q 2021). Revenue: CN¥39.6m (up 17% from 3Q 2021). Net loss: CN¥669.6k (loss narrowed 69% from 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Reported Earnings • Aug 26
Second quarter 2022 earnings released Second quarter 2022 results: CN¥0.009 loss per share. Net loss: CN¥2.38m (flat on 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Apr 28
First quarter 2022 earnings released: CN¥0.011 loss per share (vs CN¥0.007 loss in 1Q 2021) First quarter 2022 results: CN¥0.011 loss per share (down from CN¥0.007 loss in 1Q 2021). Revenue: CN¥17.7m (down 41% from 1Q 2021). Net loss: CN¥2.08m (loss widened 40% from 1Q 2021). 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 17% 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. 3 experienced directors. 9 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Shu Liu was the last independent director to join the board, commencing their role in 2008. 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 03
Full year 2021 earnings released: CN¥0.05 loss per share (vs CN¥0.051 profit in FY 2020) Full year 2021 results: CN¥0.05 loss per share (down from CN¥0.051 profit in FY 2020). Revenue: CN¥130.4m (down 7.0% from FY 2020). Net loss: CN¥8.86m (down 189% from profit in FY 2020). Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Dec 30
Hubei Huarong Holding Co.,Ltd. (SHSE:600421) signed the Reorganization Intention Agreement to acquire Shanghai Outdo Biotech Co., Ltd. from Shanghai Biochip Co., Ltd., Yinzhou City Construction Investment Devp Co,.Ltd, Tianjin Zhike Biotechnology Partnership (Limited Partnership) and Shanghai Qianxin Enterprise. Hubei Huarong Holding Co.,Ltd. (SHSE:600421) signed the Reorganization Intention Agreement to acquire Shanghai Outdo Biotech Co., Ltd. from Shanghai Biochip Co., Ltd., Yinzhou City Construction Investment Devp Co,.Ltd, Tianjin Zhike Biotechnology Partnership (Limited Partnership) and Shanghai Qianxin Enterprise on December 14, 2021. The consideration will be paid in stocks. As of December 29, 2021, Hubei Huarong Holding Co., Ltd. intends to terminate the acquisition of Shanghai Outdo Biotech Co., Ltd. from Shanghai Biochip Co., Ltd., Yinzhou City Construction Investment Devp Co,.Ltd, Tianjin Zhike Biotechnology Partnership (Limited Partnership) and Shanghai Qianxin Enterprise. The termination needs to be reviewed and approved by the Hubei Huarong's relevant procedures and the board of the directors. Hubei Huarong will promptly disclose relevant announcements on the termination of this reorganization. Guosheng Securities Co., Ltd. acted as financial advisor, Lixin Zhonglian Certified Public Accountants acted as accountant, China United Assets Appraisal Group Co., Ltd. acted as due diligence provider and Freetech Law Firm acted as legal advisor to Hubei Huarong. Board Change • Dec 29
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. 3 experienced directors. 9 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Shu Liu was the last independent director to join the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Dec 22
Hubei Huarong Holding Co.,Ltd. announced a financing transaction Hubei Huarong Holding Co.,Ltd. announced a private placement to raise matching funds on December 21, 2021. The transaction will include participation from not more than 35 specific investors. The transaction still needs to be reviewed by the company’s board of directors and the general meeting of shareholders, and must be approved by the competent regulatory authority. There is still uncertainty about whether it can be approved. Reported Earnings • Aug 29
Second quarter 2021 earnings released: CN¥0.008 loss per share (vs CN¥0.004 loss in 2Q 2020) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CN¥39.7m (up 2.2% from 2Q 2020). Net loss: CN¥1.63m (loss widened 81% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Announcement • Jul 07
Hubei Huarong Plans to Buy Bio Pharmaceuticals Firm Hubei Huarong Holding Co.,Ltd. (SHSE:600421) said it plans to buy Wuxi Shenrui Bio-Pharmaceuticals Co. Ltd. via cash, share issue. Shares trading to halt from July 5, 2021. Reported Earnings • Apr 29
Full year 2020 earnings released: EPS CN¥0.05 (vs CN¥0.02 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: CN¥140.2m (up CN¥116.9m from FY 2019). Net income: CN¥9.95m (up 205% from FY 2019). Profit margin: 7.1% (down from 14% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 11
New 90-day low: CN¥8.68 The company is down 37% from its price of CN¥13.69 on 13 October 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Trade Distributors industry, which is down 5.0% over the same period. Announcement • Nov 16
Shanghai Dengdu Enterprise Development Co., Ltd. agreed to acquire 75% stake in Shanghai Aobo Internal Combustion Engine Parts Co., Ltd. from Hubei Huarong Holding Co.,Ltd. (SHSE:600421) for CNY 35.24 million. Shanghai Dengdu Enterprise Development Co., Ltd. agreed to acquire 75% stake in Shanghai Aobo Internal Combustion Engine Parts Co., Ltd. from Hubei Huarong Holding Co.,Ltd. (SHSE:600421) for CNY 35.24 million on November 12, 2020. Shanghai Dengdu Enterprise Development Co., Ltd. should pay CNY 17.62 million within 10 days from the approval of shareholders of Hubei Huarong Holding Co.,Ltd. Shanghai Dengdu Enterprise Development Co., Ltd. should pay CNY 17.62 million within 10 days after the completion of the share transfer. On November 12, 2020, board of directors of Hubei Huarong Holding Co.,Ltd. approved the deal. The transaction is subjected to approval from shareholders of Hubei Huarong Holding Co.,Ltd. Is New 90 Day High Low • Oct 30
New 90-day low: CN¥10.93 The company is down 9.0% from its price of CN¥12.00 on 31 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 Trade Distributors industry, which is down 8.0% over the same period. Announcement • Jul 09
Hubei Yangfan Holding Co., Ltd. to Report First Half, 2020 Results on Aug 26, 2020 Hubei Yangfan Holding Co., Ltd. announced that they will report first half, 2020 results on Aug 26, 2020