CMGE Technology Group Limited (0302) AI Stock Analysis

• Market Cap: HK$1.26B
• Dividend Yield: N/A
• Average Volume (3M): 5.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -36.80%
• EPS Growth: -666.80%
• Country: HK
• Employees: 710
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.23
• Shares Outstanding: 2,995,413,800
• 10 Day Avg. Volume: 4,826,200
• 30 Day Avg. Volume: 5,423,970
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -5.36
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.40 ▼(-1.95% Downside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenues and liquidity issues. Technical analysis indicates bearish momentum, with the stock being oversold. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further impacting the stock's attractiveness.

Positive Factors

Healthy equity ratio

A strong equity position and stable leverage give the company a durable solvency buffer. This supports multi-year investments in game development and licensing, reduces refinancing risk during downturns, and preserves strategic optionality to pursue partnerships or M&A.

Freemium, diversified monetization

The freemium model with in-game purchases, ads and licensing provides multiple recurring revenue streams. Structurally this supports higher lifetime value per user and resilience versus single-product sales, enabling scaling and monetization across future titles if user engagement is maintained.

Established developer & distribution network

Established development capabilities and an existing distribution network create durable competitive advantages: faster go-to-market, cross-promotion across titles, and stronger bargaining for platform placements and partnerships that support sustainable user acquisition and revenue generation.

Negative Factors

Material revenue decline

A steep multi-year revenue decline erodes scale economics critical to mobile games: reduced ability to fund live-ops, lower marketing ROI, and weaker bargaining power with platforms and partners. Sustained top-line contraction undermines the business model's long-term viability.

Negative operating and free cash flow

Persistent negative operating and free cash flow constrains internal funding for development and updates, forcing reliance on external financing or asset sales. This reduces strategic flexibility, raises refinancing risk, and can impair long-term product roadmaps and user retention efforts.

Margins and profitability turned negative

Negative gross and net margins indicate core product economics are under pressure, reducing reinvestable cash and harming return on invested capital. Continued losses weaken shareholder equity growth and can impede long-term content investment and talent retention needed for sustainable competitiveness.

CMGE Technology Group Limited Business Overview & Revenue Model

Company Description

CMGE Technology Group Limited, an investment holding company, operates as an intellectual property (IP)-based game publisher and developer in Mainland China, Hong Kong, Taiwan, and South Korea. The company offers games on IPs related to cultural products and art works, such as icons or characters from animations, novels, and motion pictures. It is also involved in the mobile game publishing, game development, and licensing of IP, as well as investment business. As of December 31, 2021, it operated 83 games. The company was founded in 2009 and is headquartered in Shenzhen, China.

How the Company Makes Money

CMGE Technology Group Limited generates revenue primarily through the sale of in-game purchases and virtual goods within its mobile games. The company's revenue model is largely based on a freemium model, where users can download games for free but are encouraged to make purchases for enhanced gameplay experiences. Additionally, CMGE earns income through advertising revenue generated from in-game advertisements and partnerships with other gaming platforms. The company may also benefit from collaborations and licensing agreements with other developers or publishers to expand its game distribution and increase its market reach.

CMGE Technology Group Limited Financial Statement Overview

Summary

CMGE Technology Group Limited is facing financial challenges 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.93B	2.61B	2.71B	3.96B	3.82B
Gross Profit	488.87M	603.06M	943.10M	1.11B	1.47B	1.22B
EBITDA	-727.54M	-336.94M	119.74M	147.55M	580.09M	507.53M
Net Income	-2.51B	-2.11B	-20.08M	-205.03M	611.77M	701.32M
Balance Sheet
Total Assets	4.41B	5.08B	7.09B	7.15B	7.84B	6.33B
Cash, Cash Equivalents and Short-Term Investments	263.34M	222.98M	234.41M	452.64M	1.19B	907.31M
Total Debt	453.32M	535.31M	521.91M	486.66M	789.68M	478.96M
Total Liabilities	1.16B	1.19B	1.39B	1.46B	2.05B	1.53B
Stockholders Equity	3.25B	3.90B	5.70B	5.67B	5.79B	4.70B
Cash Flow
Free Cash Flow	-137.91M	-385.62M	-90.09M	-15.95M	348.29M	606.62M
Operating Cash Flow	-137.47M	-234.06M	46.56M	-1.58M	355.58M	610.59M
Investing Cash Flow	-19.85M	-93.52M	-86.26M	-224.20M	-994.76M	-871.75M
Financing Cash Flow	140.52M	226.40M	18.59M	-410.15M	689.82M	329.68M

CMGE Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.41
• 50DMA: Positive
• 100DMA: Positive
• 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 0.41 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.38, and below the 200-day MA of 0.44, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.10 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6820	59 Neutral	HK$1.20B	16.72	5.50%	―	30.71%	―
3798	56 Neutral	HK$1.78B	-25.27	-3.33%	7.30%	-23.42%	-191.82%
9990	45 Neutral	HK$1.35B	-7.44	-7.69%	―	41.00%	23.75%
0302	39 Underperform	HK$1.26B	-0.44	-57.29%	―	-36.80%	-666.80%
1119	39 Underperform	HK$1.28B	-2.46	-27.26%	―	-17.65%	48.05%

CMGE Technology Group Limited Corporate Events

CMGE Technology Faces Financial Impairments Amidst Gaming Market Challenges

CMGE Technology Group Limited announced impairments in trade receivables and financial assets during the 2024 reporting period, reflecting challenges in the mobile gaming market. The company recognized a significant impairment of RMB175.8 million due to delayed payments from third-party publishing channels and RMB79.73 million from a failed game development agreement, highlighting industry-wide financial pressures and operational risks.

The most recent analyst rating on (HK:0302) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on CMGE Technology Group Limited stock, see the HK:0302 Stock Forecast page.