CMGE Technology Group Limited (0302) AI Stock Analysis

• Market Cap: HK$1.68B
• Dividend Yield: N/A
• Average Volume (3M): 8.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: -27.68%
• EPS Growth: -11792.65%
• Country: HK
• Employees: 710
• Sector: Communication Services
• Sector Strength: 85
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.72
• Shares Outstanding: 2,995,413,800
• 10 Day Avg. Volume: 10,049,800
• 30 Day Avg. Volume: 8,775,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: HK$0.50 ▼(-10.71% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenues and liquidity issues. Technical analysis provides some positive momentum, but the valuation remains unattractive due to negative earnings. The absence of earnings call data and corporate events limits additional insights.

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 through several key streams. The primary source of income comes from the sale of in-game virtual items and currencies, which enhance the gaming experience for users. The company also earns money from licensing agreements, where it partners with other game developers to distribute their games in the Chinese market. Additionally, CMGE benefits from strategic partnerships with major technology firms and platforms, which help in expanding its reach and visibility. Advertising within its games and collaborations with brands for cross-promotional activities also contribute to its revenue. Furthermore, the company invests in the development of original intellectual properties, which can be monetized through multiple channels, including merchandising and media adaptations.

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: 0.56
• 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 0.56 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.50, and below the 200-day MA of 0.61, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 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 *	66 Neutral	¥470.97B	18.40	1.03%	2.22%	6.07%	-14.99%
9990	57 Neutral	HK$1.43B	―	-12.95%	―	23.51%	11.90%
3798	52 Neutral	HK$1.45B	18.03	-3.75%	8.85%	-23.76%	-116.47%
0302	51 Neutral	HK$1.68B	―	-43.81%	―	-27.68%	-11792.65%
08IA	―	€212.42M	―	-34.71%	―	―	―
6820	42 Neutral	HK$1.57B	―	-4.15%	―	7.55%	64.78%

CMGE Technology Group Limited Corporate Events

CMGE Technology Group Accelerates Web3 Initiatives and Expands Global Gaming Ecosystem

CMGE Technology Group Limited is accelerating its strategic initiatives in Web3 technologies, focusing on tokenizing real-world assets (RWA) of its top IP, ‘The Legend of Sword and Fairy,’ and launching a Web3 aggregated payment tool. These measures aim to leverage historic opportunities in Hong Kong’s Web3 policies, optimize cross-border payments, and enhance the company’s global gaming ecosystem. Additionally, CMGE is developing ‘KKFun Esports,’ a decentralized Web3 e-sports gaming platform, to expand its overseas business and integrate its payment tools, positioning itself at the forefront of the evolving gaming sector.

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.