New Risk • May 12
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 16% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Apr 20
Full year 2025 earnings released: EPS: CN¥0.24 (vs CN¥0.16 in FY 2024) Full year 2025 results: EPS: CN¥0.24 (up from CN¥0.16 in FY 2024). Revenue: CN¥493.7m (down 20% from FY 2024). Net income: CN¥43.2m (up 55% from FY 2024). Profit margin: 8.8% (up from 4.5% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • Apr 20
Hongda High-Tech Holding Co.,Ltd., Annual General Meeting, May 15, 2026 Hongda High-Tech Holding Co.,Ltd., Annual General Meeting, May 15, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Haining, Zhejiang China Announcement • Mar 31
Hongda High-Tech Holding Co.,Ltd. to Report Q1, 2026 Results on Apr 27, 2026 Hongda High-Tech Holding Co.,Ltd. announced that they will report Q1, 2026 results on Apr 27, 2026 Announcement • Dec 31
Hongda High-Tech Holding Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 18, 2026 Hongda High-Tech Holding Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 18, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.13 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.11 (down from CN¥0.13 in 3Q 2024). Revenue: CN¥138.6m (down 16% from 3Q 2024). Net income: CN¥18.4m (down 20% from 3Q 2024). Profit margin: 13% (in line with 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Sep 30
Hongda High-Tech Holding Co.,Ltd. to Report Q3, 2025 Results on Oct 25, 2025 Hongda High-Tech Holding Co.,Ltd. announced that they will report Q3, 2025 results on Oct 25, 2025 Announcement • Jul 02
Hongda High-Tech Holding Co.,Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Hongda High-Tech Holding Co.,Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Declared Dividend • Jun 15
Dividend reduced to CN¥0.05 Dividend of CN¥0.05 is 67% lower than last year. Ex-date: 20th June 2025 Payment date: 20th June 2025 Dividend yield will be 0.4%, which is lower than the industry average of 3.3%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (15% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 65% to shift the payout ratio to a potentially unsustainable range, which is more than the 18% EPS decline seen over the last 5 years. Announcement • May 30
Hongda High-Tech Holding Co.,Ltd. Approves Cash Dividend for 2024 Hongda High-Tech Holding Co.,Ltd. at its Annual General Meeting of 2024 on 28 May 2025 approved Cash dividend per 10 shares (tax included) of CNY 0.50000000 for 2024. Valuation Update With 7 Day Price Move • May 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥12.44, the stock trades at a trailing P/E ratio of 79.6x. Average trailing P/E is 29x in the Luxury industry in China. Total returns to shareholders of 50% over the past three years. Reported Earnings • Apr 26
Full year 2024 earnings released: EPS: CN¥0.16 (vs CN¥0.47 in FY 2023) Full year 2024 results: EPS: CN¥0.16 (down from CN¥0.47 in FY 2023). Revenue: CN¥618.3m (up 16% from FY 2023). Net income: CN¥27.9m (down 66% from FY 2023). Profit margin: 4.5% (down from 15% in FY 2023). Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 8% per year. Announcement • Apr 26
Hongda High-Tech Holding Co.,Ltd., Annual General Meeting, May 28, 2025 Hongda High-Tech Holding Co.,Ltd., Annual General Meeting, May 28, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Haining, Zhejiang China Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥9.55, the stock trades at a trailing P/E ratio of 21.9x. Average trailing P/E is 23x in the Luxury industry in China. Total loss to shareholders of 11% over the past three years. Announcement • Mar 31
Hongda High-Tech Holding Co.,Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Hongda High-Tech Holding Co.,Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Dec 31
Hongda High-Tech Holding Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 Hongda High-Tech Holding Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Board Change • Dec 11
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 8 highly experienced directors. Independent Director Xiangyu Chen was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 04
Third quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.13 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.13 (up from CN¥0.13 in 3Q 2023). Revenue: CN¥165.7m (up 23% from 3Q 2023). Net income: CN¥23.2m (up 4.0% from 3Q 2023). Profit margin: 14% (down from 17% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 3% per year. Announcement • Sep 30
Hongda High-Tech Holding Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Hongda High-Tech Holding Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥10.20, the stock trades at a trailing P/E ratio of 23.6x. Average trailing P/E is 21x in the Luxury industry in China. Total returns to shareholders of 8.4% over the past three years. Reported Earnings • Aug 28
Second quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.17 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.14 (down from CN¥0.17 in 2Q 2023). Revenue: CN¥154.3m (up 20% from 2Q 2023). Net income: CN¥24.5m (down 21% from 2Q 2023). Profit margin: 16% (down from 24% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 7% per year, which means it is performing significantly worse than earnings. Announcement • Jun 29
Hongda High-Tech Holding Co.,Ltd. to Report First Half, 2024 Results on Aug 28, 2024 Hongda High-Tech Holding Co.,Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 Declared Dividend • Jun 15
Dividend increased to CN¥0.15 Dividend of CN¥0.15 is 50% higher than last year. Ex-date: 20th June 2024 Payment date: 20th June 2024 Dividend yield will be 1.8%, which is lower than the industry average of 3.3%. Sustainability & Growth Dividend is well covered by both earnings (32% earnings payout ratio) and cash flows (47% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 64% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.0% EPS decline seen over the last 5 years. Announcement • Apr 28
Hongda High-Tech Holding Co.,Ltd., Annual General Meeting, May 28, 2024 Hongda High-Tech Holding Co.,Ltd., Annual General Meeting, May 28, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Haining, Zhejiang China Agenda: To approve 2023 work report of the board of directors; to approve 2023 work report of the supervisory committee; to approve 2023 annual accounts report; to approve 2024 allowance for supervisors; to reappoint 2024 audit firm; to elect non-independent directors; to elect independent directors; to elect shareholder supervisors; and to consider and approve other matters of business. Announcement • Apr 27
Hongda High-Tech Holding Co.,Ltd. Proposes Final Dividend for the Year 2023 Hongda High-Tech Holding Co.,Ltd. proposed final cash dividend/10 shares (tax included) of CNY 1.50000000 for 2023. Reported Earnings • Apr 26
Full year 2023 earnings released: EPS: CN¥0.47 (vs CN¥0.45 in FY 2022) Full year 2023 results: EPS: CN¥0.47 (up from CN¥0.45 in FY 2022). Revenue: CN¥535.2m (down 7.6% from FY 2022). Net income: CN¥82.3m (up 3.2% from FY 2022). Profit margin: 15% (up from 14% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has remained flat. Announcement • Mar 30
Hongda High-Tech Holding Co.,Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Hongda High-Tech Holding Co.,Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥7.27, the stock trades at a trailing P/E ratio of 17x. Average trailing P/E is 21x in the Luxury industry in China. Total loss to shareholders of 12% over the past three years. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥9.85, the stock trades at a trailing P/E ratio of 23x. Average trailing P/E is 27x in the Luxury industry in China. Total returns to shareholders of 16% over the past three years. Announcement • Dec 29
Hongda High-Tech Holding Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 26, 2024 Hongda High-Tech Holding Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 26, 2024 Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: CN¥0.13 (vs CN¥0.18 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.13 (down from CN¥0.18 in 3Q 2022). Revenue: CN¥134.9m (down 18% from 3Q 2022). Net income: CN¥22.3m (down 29% from 3Q 2022). Profit margin: 17% (down from 19% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 3% per year. Reported Earnings • Aug 24
Second quarter 2023 earnings released: EPS: CN¥0.17 (vs CN¥0.15 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.17 (up from CN¥0.15 in 2Q 2022). Revenue: CN¥129.1m (down 18% from 2Q 2022). Net income: CN¥31.1m (up 13% from 2Q 2022). Profit margin: 24% (up from 18% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Apr 26
Full year 2022 earnings released: EPS: CN¥0.45 (vs CN¥0.37 in FY 2021) Full year 2022 results: EPS: CN¥0.45 (up from CN¥0.37 in FY 2021). Revenue: CN¥579.4m (down 3.6% from FY 2021). Net income: CN¥79.7m (up 23% from FY 2021). Profit margin: 14% (up from 11% in FY 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 6% per year, which means it is well ahead of earnings. Board Change • Feb 01
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. 7 experienced directors. 5 highly experienced directors. Director & CFO Fengjuan Wang was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥12.25, the stock trades at a trailing P/E ratio of 52.3x. Average trailing P/E is 27x in the Luxury industry in China. Total returns to shareholders of 27% over the past three years. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.18 (vs CN¥0.11 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.18 (up from CN¥0.11 in 3Q 2021). Revenue: CN¥165.4m (up 9.2% from 3Q 2021). Net income: CN¥31.5m (up 51% from 3Q 2021). Profit margin: 19% (up from 14% in 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥10.56, the stock trades at a trailing P/E ratio of 60.7x. Average trailing P/E is 21x in the Luxury industry in China. Total returns to shareholders of 13% over the past three years. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.15 (vs CN¥0.30 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.15 (down from CN¥0.30 in 2Q 2021). Revenue: CN¥157.0m (flat on 2Q 2021). Net income: CN¥27.6m (down 48% from 2Q 2021). Profit margin: 18% (down from 34% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥11.09, the stock trades at a trailing P/E ratio of 34.7x. Average trailing P/E is 22x in the Luxury industry in China. Total returns to shareholders of 9.6% over the past three years. Announcement • May 27
Hongda High-Tech Holding Co.,Ltd. Announces Final Cash Dividend on A Shares for 2021, Payable on 01 June 2022 Hongda High-Tech Holding Co.,Ltd. announced final cash dividend of CNY 1.00000000 per 10 shares on A shares for 2021. Record date is 31 May 2022, Ex-date is 01 June 2022 and Payment date is 01 June 2022. Announcement • May 20
Hongda High-Tech Holding Co.,Ltd. Approves Cash Dividend for 2021 Hongda High-Tech Holding Co.,Ltd. at the AGM held on May 18, 2022, approved Cash dividend per 10 shares (tax included) of CNY 1.00000000 for 2021. Board Change • Apr 27
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 5 experienced directors. No highly experienced directors. Independent Director Qi Gao is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Apr 26
Hongda High-Tech Holding Co.,Ltd. Proposes Cash Dividend for the Year 2021 Hongda High-Tech Holding Co.,Ltd. proposed Cash dividend/10 shares (tax included) of CNY1.00000000 for the year 2021. Buying Opportunity • Mar 15
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 5.0%. The fair value is estimated to be CN¥11.98, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.5% per annum over the last 3 years. Earnings per share has been flat over the last 3 years. Buying Opportunity • Jan 25
Now 23% undervalued Over the last 90 days, the stock is up 5.6%. The fair value is estimated to be CN¥12.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.5% per annum over the last 3 years. Earnings per share has been flat over the last 3 years. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.13 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥151.5m (up 15% from 3Q 2020). Net income: CN¥20.8m (down 10% from 3Q 2020). Profit margin: 14% (down from 18% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year and the company’s share price has also fallen by 2% per year. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.30 (vs CN¥0.10 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥156.1m (up 90% from 2Q 2020). Net income: CN¥53.3m (up 198% from 2Q 2020). Profit margin: 34% (up from 22% in 2Q 2020). The increase in margin was driven by higher revenue. 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 3% per year. Announcement • May 21
Hongda High-Tech Holding Co.,Ltd. Approves Cash Dividend for 2020 Hongda High-Tech Holding Co.,Ltd. at its annual general meeting held on May 18, 2021 approved cash dividend/10 shares (tax included) of CNY 1.00000000 for 2020. Reported Earnings • Apr 20
Full year 2020 earnings released: EPS CN¥0.36 (vs CN¥0.47 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥461.7m (down 15% from FY 2019). Net income: CN¥64.0m (down 23% from FY 2019). Profit margin: 14% (down from 15% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 12% per year. Announcement • Mar 09
Hongda High-Tech Holding Co.,Ltd. to Report Fiscal Year 2020 Results on Apr 20, 2021 Hongda High-Tech Holding Co.,Ltd. announced that they will report fiscal year 2020 results on Apr 20, 2021 Is New 90 Day High Low • Jan 25
New 90-day low: CN¥8.84 The company is down 29% from its price of CN¥12.39 on 27 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is down 10.0% over the same period. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥10.85, the stock is trading at a trailing P/E ratio of 29.3x, down from the previous P/E ratio of 34.6x. This compares to an average P/E of 28x in the Luxury industry in China. Total return to shareholders over the past three years is a loss of 21%. Is New 90 Day High Low • Jan 05
New 90-day low: CN¥10.85 The company is down 2.0% from its price of CN¥11.11 on 30 September 2020. The Chinese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Luxury industry, which is also down 2.0% over the same period. Is New 90 Day High Low • Nov 03
New 90-day high: CN¥13.29 The company is up 31% from its price of CN¥10.14 on 05 August 2020. The Chinese market is down 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is down 4.0% over the same period. Reported Earnings • Oct 25
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥66.2m, down 24% from the prior year. Total revenue was CN¥467.3m over the last 12 months, down 25% from the prior year. Announcement • Oct 17
Hongda High-Tech Holding Co.,Ltd. to Report Q3, 2020 Results on Oct 24, 2020 Hongda High-Tech Holding Co.,Ltd. announced that they will report Q3, 2020 results on Oct 24, 2020 Is New 90 Day High Low • Oct 13
New 90-day high: CN¥11.69 The company is up 20% from its price of CN¥9.77 on 15 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is down 4.0% over the same period. Announcement • Sep 22
Hongda High-Tech Holding Co.,Ltd. announced that it expects to receive CNY 202.008 million in funding Hongda High-Tech Holding Co.,Ltd. (SZSE:002144) announced a private placement of not more than 26,580,000 Class A shares at a price of CNY 7.60 per share for gross proceeds of not more than CNY 202,008,000 on March 4, 2020. The transaction included participation from 8 individual investors, Shen Guofu for CNY 178,600,000, Mao Zhilin for CNY 2,052,000, Xu Jianzhou for CNY 1,216,000, Gu Weifeng for CNY 1,368,000, Wang Fengjuan for CNY 4,712,000, Sun Yunhao for CNY 760,000, Zhang Jianfu for CNY 8,892,000, and Zhou Meiling for CNY 4,408,000. The transaction has been approved in the 7th directorate of its 2nd meeting of the company. The transaction is subject to approval from the company’s shareholders and from China Securities Regulatory Commission. All the securities issued will have a lock-up period of 18 months after issuance completion date within which they cannot be transferred. Is New 90 Day High Low • Sep 21
New 90-day high: CN¥11.54 The company is up 27% from its price of CN¥9.06 on 23 June 2020. The Chinese market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 8.0% over the same period. Announcement • Aug 02
Hongda High-Tech Holding Co.,Ltd. to Report First Half, 2020 Results on Aug 25, 2020 Hongda High-Tech Holding Co.,Ltd. announced that they will report first half, 2020 results on Aug 25, 2020 
