China National Culture Group Limited (0745) AI Stock Analysis

• Market Cap: HK$145.31M
• Dividend Yield: N/A
• Average Volume (3M): 234.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 56.76%
• EPS Growth: 90.36%
• Country: HK
• Employees: 22
• Sector: Communication Services
• Sector Strength: 86
• Industry: Advertising Agencies
• EPS (TTM): -0.03
• Shares Outstanding: 234,366,460
• 10 Day Avg. Volume: 97,128
• 30 Day Avg. Volume: 234,614
• 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

• Rating: 39 Underperform
• Price Target: ―

China National Culture Group Limited's overall stock score reflects significant financial and operational challenges. The company's negative revenue growth, profitability issues, and cash flow problems weigh heavily on its financial health. Technical indicators suggest a lack of upward momentum, and the negative P/E ratio highlights valuation concerns. These factors contribute to a low score, indicating a need for substantial strategic improvements.

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	28.96M	43.71M	27.88M	43.02M	67.46M	78.09M
Gross Profit	5.26M	3.95M	5.44M	18.55M	23.04M	23.13M
EBITDA	-4.64M	4.68M	0.00	5.28M	-9.95M	-17.96M
Net Income	-37.63M	-4.78M	-43.67M	-1.50M	-34.55M	-56.32M
Balance Sheet
Total Assets	25.69M	51.88M	32.04M	78.01M	87.10M	101.81M
Cash, Cash Equivalents and Short-Term Investments	14.61M	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	12.23M	7.30M	15.29M	17.02M	30.77M	35.96M
Stockholders Equity	13.46M	44.58M	16.75M	60.98M	56.34M	65.85M
Cash Flow
Free Cash Flow	-978.00K	-955.00K	-5.64M	-3.58M	-8.50M	376.00K
Operating Cash Flow	-978.00K	-955.00K	-5.64M	-3.58M	-8.50M	376.00K
Investing Cash Flow	0.00	-34.00K	0.00	-1.40M	-10.68M	-4.92M
Financing Cash Flow	0.00	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
8121	61 Neutral	HK$17.01M	9.88	-3.24%	―	38.94%	-71.65%
Sector *	60 Neutral	$42.79B	1.96	-13.01%	4.01%	1.89%	-41.77%
8627	45 Neutral	HK$43.20M	14.86	-1.14%	―	-37.67%	-152.00%
0745	39 Underperform	HK$145.31M	―	-15.60%	―	56.76%	90.36%
8153	38 Underperform	HK$20.80M	―	-80.09%	―	-21.64%	-43.56%
8238	31 Underperform	HK$17.07M	―	-1039.35%	―	-11.50%	81.10%

China National Culture Group Limited Corporate Events

China National Culture Group Completes Rights Issue, Raises HK$15.1 Million

China National Culture Group Limited successfully completed its Rights Issue, raising approximately HK$15.1 million in net proceeds. The funds will be used to develop the company’s e-commerce business and for general working capital. The Rights Issue did not alter the company’s shareholder structure, and all conditions for the issue were met, allowing for the commencement of trading in the new shares.