What is China Qinfa Group Financial Strength?
China Qinfa Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
China Qinfa Group Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
China Qinfa Group's Interest Coverage for the quarter that ended in Dec. 2023 was 3.16.
China Qinfa Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.16.
As of today, China Qinfa Group's Altman Z-Score is -0.11.
Competitive Comparison of China Qinfa Group's Financial Strength
For the Thermal Coal subindustry, China Qinfa Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Qinfa Group's Financial Strength Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, China Qinfa Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where China Qinfa Group's Financial Strength falls into.
China Qinfa Group Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
China Qinfa Group's Interest Expense for the
months ended in Dec. 2023 was HK$-115 Mil. Its Operating Income for the
months ended in Dec. 2023 was HK$362 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$1,856 Mil.
China Qinfa Group's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. China Qinfa Group Ltd interest coverage is 3.09, which is low.
2. Debt to revenue ratio. The lower, the better.
China Qinfa Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
China Qinfa Group has a Z-score of -0.11, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.11 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Qinfa Group (HKSE:00866) Business Description
Traded in Other Exchanges
N/A
Address
No. 1 Pazhou Avenue East, Unit Nos. 2201 to 2208, Level 22, South Tower, Poly International Plaza, Haizhu District, Guangzhou, CHN
China Qinfa Group Ltd is a Hong-Kong based firm engaged in coal operation business involving coal mining, purchases and sales, filtering, storage, the blending of coal in the PRC, and shipping transportation. The company operates its business through two segments namely Coal and Shipping transportation segments. Coal business segment covers coal mining, purchases and sales, filtering, storage and blending of coal in the PRC, and Shipping transportation segment provides services of time charter and voyage charter of vessels. It has a business presence in the PRC and other countries, of which the majority of the revenue is generated within the PRC.
China Qinfa Group (HKSE:00866) Headlines
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