China National Culture Group Limited (0745) AI Stock Analysis

• Market Cap: HK$164.06M
• Dividend Yield: N/A
• Average Volume (3M): 91.74K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 1.10
• Revenue Growth: 56.81%
• EPS Growth: N/A
• Country: HK
• Employees: 22
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.07
• Shares Outstanding: 234,366,460
• 10 Day Avg. Volume: 94,150
• 30 Day Avg. Volume: 91,736
• PEG Ratio: 0.02
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -10.86
• 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: 53 Neutral
• Price Target: HK$0.75 ▲(1.49% Upside)

The score is held back primarily by weak financial quality—ongoing net losses and negative free cash flow—despite a low-debt balance sheet. Technical momentum is currently supportive with price above key moving averages and a positive MACD, but valuation (P/E ~22) offers only moderate support without a dividend.

Positive Factors

Revenue Growth

Strong revenue growth indicates a recovering market position and potential for future profitability, enhancing long-term business prospects.

Strategic Partnerships

This partnership can expand market reach and diversify revenue streams, leveraging Gansu's network to strengthen the company's position in the PRC market.

Balance Sheet Health

A low-debt position reduces financial risk and provides flexibility for strategic investments, supporting long-term stability.

Negative Factors

Negative Free Cash Flow

Persistent negative cash flow indicates challenges in self-funding operations, which could limit growth and require external financing.

Net Losses

Ongoing net losses highlight profitability challenges, which could hinder reinvestment and shareholder returns over the long term.

Cash Conversion Risk

Weak cash conversion poses a risk to sustaining operations without external funding, affecting long-term financial health.

China National Culture Group Limited Business Overview & Revenue Model

Company Description

China National Culture Group Limited, an investment holding company, provides advertising and value-added services through mobile devices in the People's Republic of China and Hong Kong. It operates through Advertising, Movie, and E-commerce segments. The company also trades in and produces films; offers other film related services; and sells products through Internet. In addition, it is involved in the operation of a website; food and beverages industry advertising business; and provision of communication marketing platform services. The company was formerly known as China Railsmedia Corporation Limited and changed its name to China National Culture Group Limited in March 2014. China National Culture Group Limited was incorporated in 2002 and is headquartered in Sheung Wan, Hong Kong.

How the Company Makes Money

China National Culture Group Limited generates revenue through multiple channels within the cultural and entertainment industries. Key revenue streams include box office receipts from film production and distribution, ticket sales from cultural events and exhibitions, and advertising revenue from media-related services. Additionally, the company may engage in strategic partnerships and collaborations with other media companies and cultural institutions to enhance its offerings and expand its market reach, thus contributing to its earnings.

China National Culture Group Limited Financial Statement Overview

Summary

China National Culture Group Limited faces significant financial challenges. The company has been consistently losing revenue and incurring net losses, impacting its profitability and sustainability. While the absence of debt is a positive factor, the continuous decline in equity and assets, combined with negative cash flows, highlight the need for strategic improvements to stabilize and grow the business.

Income Statement

The company has experienced a significant decline in revenue over the last few years, with a negative revenue growth rate of -35% from 2023 to 2024. Net profit margin is heavily negative at -156.62% for 2024, indicating substantial losses. Gross profit margin decreased to 19.50% in 2024 from a higher margin in previous years. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company has no debt, resulting in a debt-to-equity ratio of 0, which is a positive aspect. However, stockholders' equity has decreased significantly, affecting the equity ratio, which stands at 52.28%. Despite having no debt, the reduction in equity and total assets points towards a deteriorating financial position.

Cash Flow

Operating cash flow is negative, and free cash flow has declined, indicating cash management issues. The operating cash flow to net income ratio is unfavorable due to negative values. The lack of positive cash flow generation is concerning for the company's liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.71M	43.71M	27.88M	43.02M	67.46M	78.09M
Gross Profit	3.95M	3.95M	5.44M	18.55M	23.04M	23.13M
EBITDA	3.87M	4.68M	0.00	5.28M	-9.95M	-17.96M
Net Income	-4.78M	-4.78M	-43.67M	-1.50M	-34.55M	-56.32M
Balance Sheet
Total Assets	51.88M	51.88M	32.04M	78.01M	87.10M	101.81M
Cash, Cash Equivalents and Short-Term Investments	32.17M	32.17M	14.64M	27.59M	25.68M	25.91M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	7.30M	7.30M	15.29M	17.02M	30.77M	35.96M
Stockholders Equity	44.58M	44.58M	16.75M	60.98M	56.34M	65.85M
Cash Flow
Free Cash Flow	-955.00K	-955.00K	-5.64M	-3.58M	-8.50M	376.00K
Operating Cash Flow	-955.00K	-955.00K	-5.64M	-3.58M	-8.50M	376.00K
Investing Cash Flow	-34.00K	-34.00K	0.00	-1.40M	-10.68M	-4.92M
Financing Cash Flow	15.30M	15.30M	0.00	6.81M	18.51M	6.16M

China National Culture 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%
8121	55 Neutral	HK$25.81M	-6.31	-7.45%	―	34.13%	-139.87%
0745	53 Neutral	HK$164.06M	20.83	31.70%	―	56.81%	―
8627	49 Neutral	HK$82.40M	-34.87	-3.32%	―	-55.47%	-205.41%
8153	42 Neutral	HK$23.92M	-0.34	-55.12%	―	-16.79%	62.70%
8238	40 Underperform	HK$20.73M	-1.04	―	―	22.85%	76.33%

China National Culture Group Limited Corporate Events

China National Culture Group Announces 2025 Interim Results

China National Culture Group Limited has announced its unaudited interim results for the six months ending September 30, 2025. This announcement complies with the Hong Kong Stock Exchange’s listing rules and provides stakeholders with insights into the company’s financial performance and strategic direction.

China National Culture Group Partners with Gansu Performing Arts for Global Stage Play Venture

China National Culture Group Limited has announced a non-legally binding memorandum of understanding with Gansu Performing Arts Group to establish a joint venture focused on the global performance and promotion of a stage play. This collaboration is expected to expand the company’s movie segment and enhance its presence in the PRC market by leveraging the extensive local network and reputation of the state-owned Gansu Performing Arts Group.

China National Culture Group Projects HK$18 Million Profit for H2 2025

China National Culture Group Limited has announced an expected net profit of approximately HK$18 million for the six months ending 30 September 2025, driven by increased revenue, gross profit, and fair value gains on financial assets. The interim results, based on unaudited management accounts, are yet to be finalized and reviewed, with full financial results anticipated by the end of November 2025.

China National Culture Group Schedules Board Meeting to Discuss Interim Results and Dividends

China National Culture Group Limited has announced a forthcoming board meeting scheduled for November 28, 2025. The meeting will focus on approving the interim results for the company and its subsidiaries, and considering the payment of an interim dividend for the six months ending September 30, 2025. This announcement indicates the company’s ongoing efforts to maintain transparency and shareholder engagement by updating stakeholders on its financial performance and potential dividend distribution.