China Ruyi Holdings (HKG:136) shareholders notch a 5.5% CAGR over 3 years, yet earnings have been shrinking

China Ruyi Holdings Limited (HKG:136) shareholders might be concerned after seeing the share price drop 15% in the last quarter. On the other hand the share price is higher than it was three years ago. Arguably you'd have been better off buying an index fund, because the gain of 18% in three years isn't amazing. Since it's been a strong week for China Ruyi Holdings shareholders, let's have a look at trend of the longer term fundamentals. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Over the last three years, China Ruyi Holdings failed to grow earnings per share, which fell 45% (annualized). This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics. It could be that the revenue growth of 40% per year is viewed as evidence that China Ruyi Holdings is growing. If the company is being managed for the long term good, today's shareholders might be right to hold on. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). SEHK:136 Earnings and Revenue Growth January 12th 2026 We know that China Ruyi Holdings has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for China Ruyi Holdings in this interactive graph of future profit estimates. A Different Perspective While the broader market gained around 41% in the last year, China Ruyi Holdings shareholders lost 6.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 1.9% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with China Ruyi Holdings , and understanding them should be part of your investment process. Of course China Ruyi Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.