Huanxi Media Group Ltd. (1003) AI Stock Analysis

• Market Cap: HK$1.12B
• Dividend Yield: N/A
• Average Volume (3M): 12.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 85
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.03
• Shares Outstanding: 3,656,472,400
• 10 Day Avg. Volume: 23,942,000
• 30 Day Avg. Volume: 12,695,001
• PEG Ratio: 0.02
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 49.74
• P/FCF Ratio: -9.00
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The overall stock score of 46 reflects significant financial challenges, including declining revenue, negative cash flows, and operational inefficiencies. Technical analysis indicates neutral to bearish momentum, while the lack of valuation metrics raises concerns about profitability and shareholder returns.

Positive Factors

Strong Content Portfolio

The company's focus on high-quality content production provides a competitive edge in the entertainment industry, appealing to both domestic and international audiences and supporting long-term revenue streams.

Diverse Revenue Streams

Multiple revenue streams from film production, streaming, and licensing enhance financial stability and reduce dependency on a single income source, supporting long-term business resilience.

Strategic Partnerships

Strategic partnerships expand market reach and distribution capabilities, increasing potential audience size and revenue opportunities, which is crucial for sustainable growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market position and demand for content, which could undermine long-term growth and profitability.

Negative Cash Flows

Negative cash flows suggest liquidity issues, limiting the company's ability to invest in new projects and potentially affecting operational sustainability.

Profit Margin Concerns

Negative profit margins highlight operational inefficiencies and cost management issues, which could hinder long-term profitability and competitive positioning.

Huanxi Media Group Ltd. Business Overview & Revenue Model

Company Description

Huanxi Media Group Limited, an investment holding company, engages in the media and entertainment, and related businesses in the People's Republic of China and Hong Kong. The company develops and invests in films and television drama series. It also develops and operates huanxi.com, an online video platform, as well as offers internet audio-visual programs services. The company was formerly known as 21 Holdings Limited and changed its name to Huanxi Media Group Limited in October 2015. Huanxi Media Group Limited was incorporated in 1994 and is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

Huanxi Media Group generates revenue primarily through multiple streams, including film production and distribution, online streaming services, and licensing of its content. The company makes money by producing films that are released in theaters, followed by distribution rights sales to various platforms. Additionally, Huanxi Media operates its own streaming service, which provides subscription-based access to its extensive library of films and television shows. Key partnerships with other media companies and streaming platforms enhance its reach and revenue potential. The success of its productions and the popularity of its content in the Chinese market significantly contribute to its earnings.

Huanxi Media Group Ltd. Financial Statement Overview

Summary

Huanxi Media Group Ltd. faces significant financial challenges with declining revenue and profit margins, coupled with negative cash flows. While the company maintains a solid equity base, the overall financial health is impacted by operational inefficiencies and liquidity concerns.

Income Statement

The company has experienced significant fluctuations in revenue, with a sharp decline in 2024 compared to previous years. Profitability metrics are concerning, with negative gross profit margin and net profit margin for 2024. Revenue volatility suggests instability in core operations.

Balance Sheet

While the company maintains a reasonable equity ratio, indicating low leverage, the total debt has increased over time. However, the strong stockholders' equity position provides some stability amidst financial challenges.

Cash Flow

Cash flow from operations has been inconsistent and negative in recent years, signaling potential liquidity issues. The inability to generate positive free cash flow in 2024 further exacerbates these concerns. Cash reserves appear to be depleting without sufficient inflow from operations or financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.91M	34.18M	1.33B	13.63M	158.35M	633.18M
Gross Profit	-132.36M	-185.14M	906.26M	-93.28M	-119.80M	-183.98M
EBITDA	-244.26M	-38.70M	519.76M	-117.26M	20.32M	429.13M
Net Income	-274.00M	-260.82M	159.13M	-221.81M	-235.56M	-237.26M
Balance Sheet
Total Assets	1.85B	1.95B	2.23B	2.22B	2.27B	1.75B
Cash, Cash Equivalents and Short-Term Investments	38.68M	148.61M	310.15M	53.70M	118.78M	142.14M
Total Debt	43.62M	56.75M	17.87M	138.18M	122.79M	71.31M
Total Liabilities	761.74M	793.74M	780.67M	888.60M	613.70M	299.18M
Stockholders Equity	1.08B	1.15B	1.45B	1.33B	1.66B	1.45B
Cash Flow
Free Cash Flow	-84.00M	-188.86M	362.94M	-46.08M	-483.47M	-572.49M
Operating Cash Flow	-83.96M	-188.82M	364.31M	-45.94M	-483.32M	-572.27M
Investing Cash Flow	473.00K	1.39M	23.06M	4.06M	-545.00K	1.39M
Financing Cash Flow	15.69M	28.60M	-128.25M	-11.71M	440.57M	455.08M

Huanxi Media Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1003, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.34, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 8.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1003.

Huanxi Media Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	66 Neutral	HK$471.79M	8.45	8.69%	6.90%	25.88%	0.69%
1981	61 Neutral	HK$1.74B	9.37	7.57%	5.71%	0.59%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1060	56 Neutral	HK$25.69B	41.50	3.30%	―	40.31%	212.50%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
1003	46 Neutral	HK$1.12B	―	―	―	―	―
1159	43 Neutral	HK$248.25M	1.34	―	―	-57.01%	―

Huanxi Media Group Ltd. Corporate Events

Huanxi Media Announces Amendments to Share and Warrant Subscriptions

Huanxi Media Group Ltd. announced amendments to its Share Subscription and Warrant Subscription Agreements, increasing the number of Subscription Shares to 727,638,000 and decreasing the number of Warrants to 731,294,472. These changes are expected to result in gross proceeds of approximately HK$218,290,000 from the Subscription and HK$7,313,000 from the Warrant Subscription, which will impact the company’s share capital and potentially enhance its financial position.

Huanxi Media Group Announces Trading Halt Pending Warrant Issuance

Huanxi Media Group Limited has announced a trading halt on its shares on the Hong Kong Stock Exchange, effective from November 12, 2025. This suspension is due to an impending announcement regarding the issuance of warrants, which could have significant implications for the company’s financial operations and investor relations.

Huanxi Media Group Ltd. Announces Strategic AI Partnership with Shanghai Stepfun

Huanxi Media Group Ltd. has entered into a strategic framework agreement with Shanghai Stepfun Intelligent Technology Co., Ltd. to establish a joint venture aimed at leveraging AI and large model technologies. This collaboration will enhance data cooperation, model development, and the creation of new entertainment content, potentially strengthening Huanxi’s market position and offering innovative solutions in the cultural and entertainment sectors.

Huanxi Media Group Announces Share Subscription and Warrant Issuance

Huanxi Media Group Ltd. announced the subscription of new shares and the issuance of warrants. The company has agreed to issue 548,470,854 new shares at a price of HK$0.30 each, representing a discount to recent trading prices, and plans to issue warrants at an effective price of HK$0.45, which is a premium over recent trading prices. These financial maneuvers are intended to raise capital and potentially strengthen the company’s market position.

Huanxi Media Group Faces Compliance Issue Over Share Sale

Huanxi Media Group Ltd. announced that Newwood Investments Limited, a company controlled by former chairman Mr. Dong Ping, sold 119,370,000 shares, representing 3.26% of the company’s total issued share capital, during a blackout period. This sale violated the Model Code for Securities Transactions, as it occurred without the knowledge or consent of the company’s relevant directors, who were unable to prevent the transaction due to lack of control over Newwood’s actions.

Huanxi Media Group Announces Director Resignation

Huanxi Media Group Ltd. has announced the resignation of Ms. Li Ni from her role as a non-executive director, effective September 15, 2025. Ms. Li has decided to step down to focus more on her other business commitments. The company has expressed gratitude for her contributions during her tenure, and there are no disagreements or issues related to her departure that need to be addressed. This change in the board composition is not expected to impact the company’s operations or market position significantly.

Huanxi Media Group Ltd. Announces Board Restructuring

Huanxi Media Group Ltd. has announced changes to its board of directors, effective from September 15, 2025. The new board structure includes Xiang Shaokun, Steven as CEO, with a mix of executive, non-executive, and independent non-executive directors. The announcement also details the composition of the board’s committees, highlighting the roles of Wong Tak Chuen, Li Xiaolong, Wang Hong, and Hu Hui in the audit, remuneration, and nomination committees. These changes may impact the company’s governance and strategic direction.