China Tontine Wines Group (HKSE:00389) Interest Coverage: 0.88 (As of Dec. 2025) — 98% Below Median

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HKSE:00389 China Tontine Wines Group Ltd HKSE:00389
32 GF Score
Price HK$0.39
GF Value HK$0.63
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is China Tontine Wines Group Interest Coverage?

China Tontine Wines Group HKSE:00389 +1.30% 32 Interest Coverage is 0.88 as of Dec. 2025, which is 98% below its 10-year median of 35.80. GuruFocus rates HKSE:00389 with a GF Score™ of 32/100 and a GF Value™ of HK$0.63 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 150 Beverages - Alcoholic companies, China Tontine Wines Group ranks worse than 57.33% on this metric.

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 by its Interest Expense. China Tontine Wines Group's Operating Income for the six months ended in Dec. 2025 was HK$0.1 Mil. China Tontine Wines Group's Interest Expense for the six months ended in Dec. 2025 was HK$-0.1 Mil. China Tontine Wines Group's interest coverage for the quarter that ended in Dec. 2025 was 0.88. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for China Tontine Wines Group's Interest Coverage or its related term are showing as below:

HKSE:00389' s Interest Coverage Range Over the Past 10 Years
Min: 0.62   Med: 35.8   Max: No Debt
Current: 6.95


HKSE:00389's Interest Coverage is ranked worse than
57.33% of 150 companies
in the Beverages - Alcoholic industry
Industry Median: 8.365 vs HKSE:00389: 6.95

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


China Tontine Wines Group  (HKSE:00389) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


China Tontine Wines Group Interest Coverage Related Terms


China Tontine Wines Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for China Tontine Wines Group's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

China Tontine Wines Group Interest Coverage Chart

China Tontine Wines Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 64.69 0.00 0.00 0.00 6.91

China Tontine Wines Group Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only N/A 0.00 44.45 0.88 0.00

HKSE:00389 vs BF.B: Interest Coverage Comparison

For the Beverages - Wineries & Distilleries subindustry, China Tontine Wines Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Tontine Wines Group Interest Coverage vs Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, China Tontine Wines Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where China Tontine Wines Group's Interest Coverage falls into.


HKSE:00389
32GF Score
China Tontine Wines Group Ltd HKSE:00389
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Tontine Wines Group Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

China Tontine Wines Group's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, China Tontine Wines Group's Interest Expense was HK$-0.1 Mil. Its Operating Income was HK$0.6 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*0.553/-0.08
=6.91

China Tontine Wines Group's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, China Tontine Wines Group's Interest Expense was HK$-0.1 Mil. Its Operating Income was HK$0.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*0.06/-0.068
=0.88

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0.88 mean?
China Tontine Wines Group (HKSE:00389) has a Interest Coverage of 0.88 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Tontine Wines Group and its competitors. This is 98% below median its historical median of 35.80. Over the past decade, China Tontine Wines Group's Interest Coverage has ranged from 0.62 to 10,000.00. According to the industry distribution chart, China Tontine Wines Group ranks #86 out of 150 companies in the Beverages - Alcoholic industry, placing it in the top 57.3%.
Is China Tontine Wines Group's Interest Coverage too high?
China Tontine Wines Group's current Interest Coverage of 0.88 is 98% below median its 10-year median of 35.80. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 10,000.00. The Beverages - Alcoholic industry median Interest Coverage is 8.37. China Tontine Wines Group's value of 0.88 is 89.5% below this industry median. Based on the distribution chart, China Tontine Wines Group ranks #86 out of 150 companies in the Beverages - Alcoholic industry, which is below the industry midpoint. Overall, China Tontine Wines Group has a GF Score™ of 32/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Tontine Wines Group's Interest Coverage compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, China Tontine Wines Group ranks #86 out of 150 companies for Interest Coverage. This places China Tontine Wines Group in the lower half of its industry. The industry median Interest Coverage is 8.37. China Tontine Wines Group's value of 0.88 is 89.5% below this benchmark. Historically, China Tontine Wines Group's own Interest Coverage has ranged from 0.62 to 10,000.00 over the past decade. While the company's 10-year median is 35.80 vs. the industry median of 8.37, China Tontine Wines Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Beverages - Alcoholic company?
The median Interest Coverage among Beverages - Alcoholic companies is 8.37, based on 150 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Tontine Wines Group's current Interest Coverage of 0.88 is 89.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Tontine Wines Group and its competitors. For the Beverages - Alcoholic industry, the median Interest Coverage is 8.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tontine Wines Group's current Interest Coverage is 0.88, which is 98% below median its own 10-year median of 35.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tontine Wines Group stock overvalued right now?
Based on GuruFocus' analysis, China Tontine Wines Group (HKSE:00389) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.63, compared to a current price of HK$0.39 — trading 38.1% below its estimated fair value. The current Interest Coverage is 0.88, which is 98% below median its 10-year median of 35.80 and 89.5% below the Beverages - Alcoholic industry median of 8.37. China Tontine Wines Group's overall GF Score™ is 32/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For China Tontine Wines Group (HKSE:00389), the current Interest Coverage is 0.88 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is China Tontine Wines Group (HKSE:00389) Overvalued in 2026?

Based on GuruFocus' analysis, China Tontine Wines Group stock appears to be undervalued. The current stock price of HK$0.39 is trading 38.1% below its estimated GF Value™ of HK$0.63. GuruFocus considers China Tontine Wines Group to be Possible Value Trap.

Key valuation signals for HKSE:00389:

  • Interest Coverage: 0.88 (98% below median its 10-year median of 35.80)
  • GF Value™: HK$0.63 vs. price of HK$0.39 (38.1% below fair value)
  • GF Score™: 32/100 with 7 warning signs
  • Industry Position: 89.5% below the Beverages - Alcoholic median (#86 of 150)

No single metric tells the full story. See the HKSE:00389 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China Tontine Wines Group Business Description

Address No. 1001 Xueyuan Avenue, Taoyuan Street, Room 1901, Building D3 Nanshan Zhiyuan, Changyuan Community, Nanshan District, Shenzhen, CHN
China Tontine Wines Group Ltd. is an investment holding company. The company and its subsidiaries are engaged in the production and sales of wine products. Its product offerings include Sweet wines, Dry wines, Brandy, and Others. Geographically, it mainly operates in the PRC.
32GF Score

Get the complete analysis for HKSE:00389

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.39
Price
HK$0.63
GF Value