CMGE Technology Group Limited (0302) AI Stock Analysis

• Market Cap: HK$1.59B
• Dividend Yield: N/A
• Average Volume (3M): 7.27M
• 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: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.72
• Shares Outstanding: 2,995,413,800
• 10 Day Avg. Volume: 7,157,800
• 30 Day Avg. Volume: 7,273,666
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 125.94
• 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: 52 Neutral
• Price Target: HK$0.50 ▼(-5.66%Downside)

The stock score of 52 is primarily driven by financial challenges, including declining revenues, negative profitability, and liquidity issues. The technical analysis provides some positive momentum, but the poor valuation due to negative earnings significantly impacts the overall 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 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	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
EBITDA	-336.94M	119.74M	-47.04M	580.09M	507.53M
Net Income	-2.11B	-20.08M	-205.03M	611.77M	701.32M
Balance Sheet
Total Assets	5.08B	7.09B	7.15B	7.84B	6.33B
Cash, Cash Equivalents and Short-Term Investments	101.76M	234.41M	452.64M	1.19B	907.31M
Total Debt	535.31M	521.91M	486.66M	789.68M	478.96M
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	-385.62M	-90.09M	-15.95M	348.29M	606.62M
Operating Cash Flow	-234.06M	46.56M	-1.58M	355.58M	610.59M
Investing Cash Flow	-93.52M	-86.26M	-224.20M	-994.76M	-871.75M
Financing Cash Flow	226.40M	18.59M	-410.15M	689.82M	329.68M

CMGE Technology Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.53
• 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 0.53 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.46, and below the 200-day MA of 0.64, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 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 *	55 Neutral	HK$66.95B	-2.14	-3.62%	6.46%	-4.24%	-17.51%
0302	52 Neutral	HK$1.59B	―	-43.81%	―	-27.68%	-11792.65%
9990	51 Neutral	HK$1.46B	―	-12.95%	―	23.51%	11.90%
6820	49 Neutral	HK$1.88B	―	-4.15%	―	7.55%	64.78%
3798	48 Neutral	HK$1.59B	18.03	-3.75%	8.06%	-23.76%	-116.47%
1119	39 Underperform	€1.93B	―	-34.71%	―	-22.86%	8.17%

CMGE Technology Group Limited Corporate Events

CMGE Technology Group Limited Successfully Passes All AGM Resolutions

CMGE Technology Group Limited announced that all proposed resolutions were passed at their Annual General Meeting held on May 27, 2025. The resolutions included the re-election of several directors, the authorization of the board to fix directors’ remuneration, the re-appointment of BDO Limited as the auditor, and the granting of mandates to the directors to buy back and issue shares. This successful AGM reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

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.