CMGE Technology Group Limited (0302) AI Stock Analysis

• Market Cap: HK$1.44B
• Dividend Yield: N/A
• Average Volume (3M): 6.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -27.68%
• EPS Growth: -11792.65%
• Country: HK
• Employees: 710
• Sector: Communication Services
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.81
• Shares Outstanding: 2,995,413,800
• 10 Day Avg. Volume: 9,369,000
• 30 Day Avg. Volume: 6,441,166
• PEG Ratio: <0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 90.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: ―

CMGE Technology Group Limited faces significant financial challenges, with declining revenues, negative profitability, and liquidity issues. The technical indicators point towards a bearish market sentiment. The valuation is unappealing with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

CMGE Technology Group Limited Business Overview & Revenue Model

Company Description

CMGE Technology Group Limited (0302) is a prominent Chinese mobile game developer and publisher. The company specializes in creating and distributing a wide range of mobile games, including role-playing, strategy, and casual games. CMGE operates primarily in the digital entertainment sector, leveraging its expertise in developing high-quality content and engaging gaming experiences for users on various mobile platforms.

How the Company Makes Money

CMGE Technology Group Limited generates revenue primarily through the development and publishing of mobile games. The company employs a free-to-play model for many of its games, where it monetizes through in-game purchases such as virtual items, premium features, and subscription services. Additionally, CMGE earns revenue through partnerships and licensing agreements with other game developers and publishers, allowing it to expand its portfolio and reach a broader audience. Advertising within its games also contributes to its revenue streams. The company's strategic alliances and collaborations with major tech firms and entertainment companies further bolster its financial performance by enhancing distribution and marketing capabilities.

CMGE Technology Group Limited Financial Statement Overview

Summary

CMGE Technology Group Limited is experiencing financial headwinds with declining revenues and profitability. The income statement reflects operational difficulties, while the balance sheet shows stable equity but negative returns. Cash flow issues highlight liquidity concerns, posing risks to financial stability.

Income Statement

The income statement shows a declining trend in revenue with a significant drop from 2023 to 2024. Gross profit margin decreased, and net profit margin turned negative due to a substantial net loss in 2024. EBIT and EBITDA margins also turned negative, indicating operational challenges.

Balance Sheet

The balance sheet displays a strong equity position with a debt-to-equity ratio remaining relatively stable. However, the return on equity has been negative due to net losses. The equity ratio is healthy, suggesting good financial leverage.

Cash Flow

Cash flow analysis reveals significant challenges with negative operating cash flow in 2024 and free cash flow turning negative in recent years. The company has struggled to convert its operations into cash, indicating liquidity issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.93B	2.61B	2.71B	3.96B	3.82B
	Gross Profit
603.06M	943.10M	1.11B	1.47B	1.22B
	EBIT
-267.78M	13.51M	78.20M	500.75M	425.88M
	EBITDA
-336.94M	119.74M	-47.04M	580.09M	507.53M
	Net Income Common Stockholders
-2.11B	-20.08M	-205.03M	611.77M	701.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
101.76M	234.41M	452.64M	1.19B	907.31M
	Total Assets
5.08B	7.09B	7.15B	7.84B	6.33B
	Total Debt
535.31M	521.91M	486.66M	789.68M	478.96M
	Net Debt
433.55M	311.30M	249.70M	-28.84M	-315.93M
	Total Liabilities
1.19B	1.39B	1.46B	2.05B	1.53B
	Stockholders Equity
3.90B	5.70B	5.67B	5.79B	4.70B
Cash Flow		Free Cash Flow
0.00	-90.09M	-15.95M	348.29M	606.62M
	Operating Cash Flow
0.00	46.56M	-1.58M	355.58M	610.59M
	Investing Cash Flow
0.00	-86.26M	-224.20M	-994.76M	-871.75M
	Financing Cash Flow
0.00	18.59M	-410.15M	689.82M	329.68M

CMGE Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0302, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.39, and below the 200-day MA of 0.67, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0302.

CMGE Technology Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0799	73 Outperform	HK$4.10B	7.07	19.85%	4.16%	8.95%	712.96%
9992	70 Neutral	€325.13B	95.83	33.41%	0.39%	103.44%	186.51%
2400	63 Neutral	HK$19.50B	21.74	38.63%	―	44.92%	―
1980	62 Neutral	$848.16M	40.63	0.88%	3.90%	-85.34%	―
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
2022	43 Neutral	HK$111.39M	―	-12.08%	―	-8.88%	44.44%
0302	41 Neutral	HK$1.44B	―	-43.81%	―	-27.68%	-11792.65%

CMGE Technology Group Limited Corporate Events

CMGE Technology Group Schedules 2025 Annual General Meeting

CMGE Technology Group Limited has announced its upcoming annual general meeting scheduled for May 27, 2025, in Shenzhen, China. The meeting will address several key resolutions, including the approval of the company’s audited financial statements for 2024, the re-election of certain directors, and the re-appointment of BDO Limited as the company’s auditor. Additionally, the meeting will consider resolutions to authorize the board to purchase company shares and to issue additional shares, which could impact the company’s market operations and shareholder value.

CMGE Technology Group Appoints New Co-CEO to Strengthen Leadership

CMGE Technology Group Limited has announced the appointment of Mr. Wang Chunye as Co-Chief Executive Officer, effective April 9, 2025. Mr. Wang brings extensive experience in the gaming industry, having held significant roles in companies like NetDragon and Giant Network Group. This strategic appointment aims to strengthen CMGE’s leadership and enhance its operational capabilities in the global gaming market.

CMGE Technology Faces Financial Challenges Amid Gaming Market Pressures

CMGE Technology Group Limited reported a challenging financial year in 2024, with a significant loss of RMB2,110.8 million despite generating a revenue of RMB1,930.1 million. The company faced difficulties due to geopolitical turbulence, a maturing gaming market, and delays in game launches, which impacted its financial performance. In response, CMGE plans to focus on business strategies that emphasize cost control and the development of high-quality IP games to strengthen its market position.

CMGE Technology Group Limited Strengthens Governance with New Appointment

CMGE Technology Group Limited, a company incorporated in the Cayman Islands, has announced the appointment of Ms. Ng Yi Kum as a new member of its nomination committee. This appointment, effective from March 27, 2025, reflects the company’s ongoing efforts to strengthen its governance structure, potentially impacting its strategic decision-making and enhancing its industry positioning.

CMGE Technology Group Announces Board Composition and Committee Roles

CMGE Technology Group Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The company has established four board committees, with specific directors assigned as chairpersons and members, to oversee various aspects of corporate governance. This announcement highlights the company’s commitment to structured governance and may impact its strategic decision-making and stakeholder confidence.

CMGE Technology Group Issues Profit Warning Amid Revenue Decline and Increased Expenses

CMGE Technology Group Limited has issued a profit warning, indicating an expected net loss of up to RMB2.2 billion for the year ending December 31, 2024, compared to a net loss of approximately RMB38.0 million in 2023. This significant decline is mainly due to a 25% to 30% decrease in revenue, attributed to delays in game launches and underperformance of existing games, as well as increased non-operating expenses, including fair value losses on financial assets and impairments of goodwill and other intangible assets.