Emperor Culture Group (0491) AI Stock Analysis

• Market Cap: HK$112.47M
• Dividend Yield: N/A
• Average Volume (3M): 879.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -2.81%
• EPS Growth: 80.19%
• Country: HK
• Employees: 651
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.03
• Shares Outstanding: 3,213,340,800
• 10 Day Avg. Volume: 793,801
• 30 Day Avg. Volume: 879,285
• PEG Ratio: 0.01
• Price to Book (P/B): -0.09
• Price to Sales (P/S): 0.27
• 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: 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: 46 Neutral
• Price Target: HK$0.04 ▼(-12.50% Downside)

The primary concern for Emperor Culture Group is its financial instability, with persistent profitability challenges and high financial risk due to leverage. Technical analysis indicates neutral momentum, while valuation metrics underscore potential overvaluation due to negative earnings.

Positive Factors

Cinema Expansion

Expanding cinema operations in Chengdu strengthens market presence and potential revenue growth, leveraging high occupancy rates for long-term success.

Governance Enhancement

Improving board diversity and structure through updated Nomination Committee terms can enhance governance and stakeholder confidence, supporting strategic alignment.

Film Exhibition Agreement

Renewing the film exhibition agreement ensures continuity in operations and revenue streams from film promotions, vital for long-term business stability.

Negative Factors

High Leverage

High leverage and negative equity pose significant financial risks, limiting flexibility and increasing insolvency risk, impacting long-term financial health.

Profitability Challenges

Ongoing profitability issues with negative net income and EBIT undermine financial stability and growth potential, challenging long-term sustainability.

Negative Cash Flow

Negative free cash flow due to high capital expenditures limits investment in growth opportunities, necessitating external financing for expansion.

Emperor Culture Group Business Overview & Revenue Model

Company Description

Emperor Culture Group Limited, an investment holding company, engages in entertainment, media, and cultural development businesses in the Mainland China, Hong Kong, and rest of Asia Pacific. The company operates through two segments, Cinema Operation; and Investments In Films And Cultural Events. It develops and operates cinemas; and invests in securities. The company was formerly known as See Corporation Limited and changed its name to Emperor Culture Group Limited in June 2017. Emperor Culture Group Limited was incorporated in 1992 and is headquartered in Wan Chai, Hong Kong. Emperor Culture Group Limited operates as a subsidiary of Albert Yeung Entertainment Holdings Limited.

How the Company Makes Money

Emperor Culture Group Limited generates revenue through multiple streams. The primary source of income is from film and television production, where the company produces and distributes media content, earning revenue from box office sales, distribution rights, and licensing deals. Additionally, the company operates a network of cinemas, generating income through ticket sales, concessions, and advertising. Emperor Culture Group also engages in strategic partnerships and collaborations with other media and entertainment entities to expand its reach and enhance its offerings, contributing to its overall revenue.

Emperor Culture Group Financial Statement Overview

Summary

Emperor Culture Group faces significant financial challenges. Despite revenue growth, the company struggles with profitability, high leverage, and negative equity, posing financial risks and limiting investment capacity.

Income Statement

Emperor Culture Group has experienced significant revenue growth over the years, with a notable increase from 2022 to 2023. However, the company has consistently reported negative net income and EBIT, indicating ongoing profitability challenges. The gross profit margin has improved, but the persistent negative EBIT and net profit margins are concerning for future profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure, with negative stockholders' equity indicating insolvency risks. The company has a high level of debt compared to its equity, as evidenced by the negative equity and increasing total liabilities. This high leverage poses significant financial risk and limits the company's financial flexibility.

Cash Flow

The cash flow analysis shows fluctuating operating cash flows but a negative free cash flow in the most recent period. The company struggles with maintaining positive free cash flow due to substantial capital expenditures, which could hinder its ability to invest in growth opportunities without external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	480.64M	480.64M	494.54M	456.20M	306.71M	192.91M
Gross Profit	277.07M	277.07M	293.03M	60.63M	179.00M	111.17M
EBITDA	8.27M	8.27M	-374.37M	6.64M	55.34M	12.88M
Net Income	-141.65M	-141.65M	-715.15M	-329.94M	-201.38M	-219.78M
Balance Sheet
Total Assets	583.76M	583.76M	838.79M	1.40B	1.81B	1.73B
Cash, Cash Equivalents and Short-Term Investments	49.82M	49.82M	84.64M	82.05M	123.26M	62.35M
Total Debt	1.80B	1.80B	1.84B	1.68B	1.84B	1.49B
Total Liabilities	2.02B	2.02B	2.13B	1.97B	2.14B	1.67B
Stockholders Equity	-1.43B	-1.43B	-1.29B	-568.28M	-233.45M	96.87M
Cash Flow
Free Cash Flow	9.82M	0.00	-55.20M	32.33M	-64.36M	-75.32M
Operating Cash Flow	9.82M	0.00	-12.93M	63.15M	-7.83M	-2.13M
Investing Cash Flow	-23.26M	0.00	-85.81M	-64.65M	-64.05M	-73.11M
Financing Cash Flow	-4.33M	0.00	101.75M	-37.58M	133.08M	89.78M

Emperor Culture Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0491, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 116.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0491.

Emperor Culture Group 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%
1060	56 Neutral	HK$29.28B	70.15	3.30%	―	40.31%	212.50%
8082	48 Neutral	HK$272.22M	―	-374.96%	―	-60.87%	-61.34%
0491	46 Neutral	HK$112.47M	―	―	―	-2.81%	80.19%
8172	45 Neutral	HK$79.97M	―	-27.50%	―	-86.40%	53.43%
0953	45 Neutral	HK$418.78M	295.00	0.29%	―	206.38%	―
1132	41 Neutral	HK$173.58M	―	24.24%	―	-7.90%	93.34%

Emperor Culture Group Corporate Events

Emperor Culture Group Updates Nomination Committee Terms

Emperor Culture Group Limited has amended and re-adopted the terms of reference for its Nomination Committee as of June 30, 2025. The committee, primarily composed of independent non-executive directors, is tasked with ensuring board diversity, assessing the board’s structure, and recommending candidates for directorship. This move is aimed at enhancing the board’s effectiveness and aligning with the company’s corporate strategy, potentially impacting the company’s governance and stakeholder confidence.

Emperor Culture Group Changes Auditor Amid Cost Control Measures

Emperor Culture Group Limited, a company listed on the Hong Kong Stock Exchange, announced a change in its auditing firm due to a disagreement over audit fees with Ernst & Young (EY). The company has appointed Cheng & Cheng Limited as the new auditor, a decision aimed at maintaining audit quality while implementing cost control measures to support future business development.

Emperor Culture Group Clarifies Pricing Policies in 2025 Framework Agreement

Emperor Culture Group Limited has provided additional details regarding its 2025 Framework Agreement, specifically concerning the pricing policy for Film Rental Licence Transactions and Film Promotion Transactions. The company outlines that the licence fees for film rentals are determined based on a percentage of the gross box office, influenced by factors like expected demand and market popularity. Meanwhile, fees for film promotion are calculated based on the redemption of movie vouchers or coupons. This supplemental announcement aims to clarify these aspects for shareholders and potential investors, ensuring transparency and maintaining the terms negotiated at arm’s length.

Emperor Culture Group Renews Film Exhibition Agreement

Emperor Culture Group has entered into a new 2025 Framework Agreement with EMP to continue its Film Rental Licence and Film Promotion Transactions. This agreement is crucial for the company’s operations in film exhibition and promotional activities within its cinemas. The transactions, exempt from shareholder approval due to their size, will be governed by the terms set out in the agreement, ensuring the continuation of film exhibition services until June 2028.

Emperor Culture Group Expands Cinema Operations in Chengdu with New Tenancy Agreement

Emperor Culture Group has entered into a Supplemental Tenancy Agreement for a cinema located in Chengdu, PRC, marking a significant step in their expansion strategy. The agreement, effective from May 15, 2024, extends the lease term to 15 years and outlines a structured rent payment plan, which includes both base and turnover rent components. This move is expected to bolster the company’s market presence in the region, leveraging the high occupancy rate of the Shin Kong Place to drive business growth.