The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the long term shareholders of Ta Yang Group Holdings Limited (HKG:1991) have had an unfortunate run in the last three years. So they might be feeling emotional about the 60% share price collapse, in that time. Furthermore, it's down 14% in about a quarter. That's not much fun for holders. But this could be related to the weak market, which is down 8.1% in the same period.

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View our latest analysis for Ta Yang Group Holdings

Because Ta Yang Group Holdings is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years Ta Yang Group Holdings saw its revenue shrink by 1.7% per year. That is not a good result. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 27% per year. Having said that, if growth is coming in the future, now may be the low ebb for the company. We'd be pretty wary of this one until it makes a profit, because we don't specialize in finding turnaround situations.

You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).

If you are thinking of buying or selling Ta Yang Group Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While it's certainly disappointing to see that Ta Yang Group Holdings shares lost 4.0% throughout the year, that wasn't as bad as the market loss of 14%. Longer term investors wouldn't be so upset, since they would have made 2.0%, each year, over five years. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. You could get a better understanding of Ta Yang Group Holdings's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.