Changyou Alliance (1039) AI Stock Analysis

• Market Cap: HK$85.11M
• Dividend Yield: N/A
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -22.35%
• EPS Growth: 48.91%
• Country: HK
• Employees: 60
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 1,810,953,200
• 10 Day Avg. Volume: 3,038,500
• 30 Day Avg. Volume: 2,502,433
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Changyou Alliance's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, persistent losses, and negative cash flows. Technical analysis provides mixed signals, with no strong momentum. Valuation is unattractive due to a negative P/E ratio and no dividend yield. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Changyou Alliance Business Overview & Revenue Model

Company Description

Changyou Alliance (1039) is a leading company primarily engaged in the online gaming and entertainment sector. It develops, operates, and publishes various online games, catering to a broad audience across multiple platforms. The company focuses on creating immersive gaming experiences and has a strong portfolio of products that include MMORPGs (Massively Multiplayer Online Role-Playing Games) and casual games, alongside offering digital entertainment services.

How the Company Makes Money

Changyou Alliance generates revenue through several key streams, primarily from in-game purchases, subscription models, and advertising. In-game purchases allow players to buy virtual goods and enhancements, contributing significantly to overall sales. The subscription model provides players access to premium content and exclusive features, creating a steady income flow. Additionally, the company engages in partnerships with other gaming companies and platforms to expand its reach and enhance its offerings, including co-development of games and cross-promotional activities, which further bolsters its revenue. Advertising within its games also serves as a source of income, especially from brands looking to target the gaming demographic.

Changyou Alliance Financial Statement Overview

Summary

Changyou Alliance is experiencing severe financial difficulties, with declining revenues and persistent losses. High debt levels, a weakening equity position, and negative cash flow highlight significant financial instability and operational challenges.

Income Statement

Changyou Alliance has been experiencing declining revenues over recent years, with a significant drop from 2020 to 2021 and a further decrease in 2024. The gross profit margin has remained low, and the company has consistently reported negative net profit margins, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational difficulties. Despite a slight improvement in gross profit in 2024, the overall income statement reflects a struggling financial performance.

Balance Sheet

The balance sheet shows a concerning debt profile, with total debt exceeding stockholders' equity, leading to a high debt-to-equity ratio. The equity ratio has been decreasing, indicating a weakening equity position relative to total assets. ROE is negative due to consistent net losses. However, the company has managed to maintain a reasonable level of cash and short-term investments, although this has declined over recent years. Overall, the balance sheet stability is a concern, with high leverage and declining equity.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating cash flow in previous years and zero free cash flow in the latest year. The free cash flow growth rate is concerning, as there has been no generation of positive free cash flow in 2024. The operating cash flow to net income ratio is not calculable due to zero operating cash flow, indicating cash flow management issues. Overall, the cash flow situation suggests the company is struggling to generate sufficient cash from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	180.71M	226.75M	215.04M	114.21M	268.84M
Gross Profit	39.27M	39.27M	28.27M	12.67M	1.04M
EBITDA	-1.95M	-5.33M	-17.55M	-93.97M	-71.28M
Net Income	-19.52M	-37.56M	-34.73M	-49.47M	-1.65M
Balance Sheet
Total Assets	138.82M	149.55M	154.41M	191.01M	289.94M
Cash, Cash Equivalents and Short-Term Investments	8.43M	25.71M	33.63M	51.34M	153.96M
Total Debt	165.75M	168.76M	145.69M	115.92M	93.99M
Total Liabilities	293.19M	302.87M	270.21M	253.23M	227.68M
Stockholders Equity	232.70M	234.69M	271.55M	311.12M	361.07M
Cash Flow
Free Cash Flow	-18.76M	6.65M	-7.15M	-103.90M	-105.36M
Operating Cash Flow	-18.39M	6.91M	-7.01M	-103.39M	-104.25M
Investing Cash Flow	-552.00K	-157.00K	-527.00K	-530.00K	30.40M
Financing Cash Flow	1.72M	-14.40M	-11.09M	3.82M	94.67M

Changyou Alliance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 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:1039, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 105.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1039.

Changyou Alliance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8473	69 Neutral	HK$159.04M	31.56	4.12%	27.14%	-20.22%	-66.17%
Sector *	56 Neutral	HK$25.46B	5.06	-2.69%	5.60%	-0.43%	-53.15%
1545	56 Neutral	HK$160.00M	88.89	0.60%	4.75%	-30.83%	-89.29%
1039	48 Neutral	HK$85.11M	―	-8.36%	―	-22.35%	48.91%
1759	48 Neutral	HK$213.84M	39.77	-3.26%	―	14.00%	-239.86%
0814	47 Neutral	HK$131.91M	―	-11.30%	―	-0.14%	-106.85%
2122	46 Neutral	HK$97.32M	―	-1969.58%	―	-17.33%	5.35%

Changyou Alliance Corporate Events

Changyou International Updates on 2020 Share Option Scheme

Changyou International Group Limited has issued a supplemental announcement regarding its 2020 Share Option Scheme, stating that the number of options available for grant remained unchanged at 181,095,327 as of both January 1, 2024, and December 31, 2024. This update does not affect any other information in the company’s annual report for the year ended December 31, 2024, and all other details remain unchanged.

Changyou International Group Announces Upcoming Board Meeting

Changyou International Group Limited has announced a board meeting scheduled for August 28, 2025, in Hong Kong. The meeting will focus on approving the interim results for the first half of 2025 and considering the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Changyou International Group Schedules EGM to Approve Facility Agreements

Changyou International Group Limited has announced an extraordinary general meeting to be held on August 20, 2025, in Hong Kong. The meeting will address resolutions related to the approval and ratification of supplemental facility agreements with PCL, which involve unsecured revolving loan facilities of up to HK$100 million for both the 2019 and 2021 Facility Agreements. These agreements are significant as they allow Changyou to adjust financial terms and potentially enhance its operational flexibility and financial strategy.

Changyou International Group Announces Delay in Circular Dispatch

Changyou International Group Limited, a company incorporated in the Cayman Islands, announced a delay in the dispatch of a circular related to its Fourth Supplemental 2019 Facility Agreement and Second Supplemental 2021 Facility Agreement. The circular, which includes information on revolving loan facility annual caps and recommendations from the Independent Board Committee and Financial Adviser, will now be sent to shareholders by August 15, 2025, instead of the originally planned date of July 18, 2025. This delay is due to the need for additional time to finalize certain information.

Changyou International Group Enhances Governance with New Nomination Committee

Changyou International Group Limited has established a nomination committee composed primarily of independent non-executive directors, with a focus on maintaining gender diversity. The committee is tasked with reviewing the board’s structure, identifying qualified board candidates, assessing director independence, and supporting board performance evaluations. This initiative aims to enhance corporate governance and align board composition with the company’s strategic objectives, potentially impacting stakeholder confidence and the company’s market positioning.

Changyou International Group Announces Changes to Nomination Committee

Changyou International Group Limited, a company incorporated in the Cayman Islands, has announced changes to its Nomination Committee in response to the amended Corporate Governance Code and Listing Rules of the Hong Kong Stock Exchange. Effective from June 24, 2025, Mr. Cheng Jerome will step down as chairman of the Nomination Committee but will remain as chairman of the Board and an executive director. Mr. Wong Chi Keung will take over as chairman of the Nomination Committee, and Ms. Liu Jingyan will join as a member, resulting in a committee comprising Mr. Wong Chi Keung, Mr. Chan Chi Keung, Alan, and Ms. Liu Jingyan.

Changyou International Group Announces Board Composition and Committee Roles

Changyou International Group Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the organization. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Cheng Jerome serving as Chairman. The board has established three committees: Audit, Nomination, and Remuneration, with specific directors assigned to each committee. This announcement highlights the company’s governance structure, which is crucial for stakeholders to understand the leadership and oversight mechanisms in place.

Changyou International Delays Circular Dispatch for Facility Agreements

Changyou International Group Limited, listed on the Hong Kong Stock Exchange, has announced a delay in the dispatch of its circular related to the Fourth Supplemental 2019 Facility Agreement and the Second Supplemental 2021 Facility Agreement. The circular, which includes important information and recommendations for shareholders, was initially expected to be sent out by June 20, 2025, but will now be postponed to on or before July 18, 2025, to allow more time for preparation and finalization of the contents.

Changyou International Updates Financial Agreements with PCL

Changyou International Group Limited, a company incorporated in the Cayman Islands, has announced updates to its financial agreements with PCL, an indirect non-wholly owned subsidiary. The company has entered into the Fourth Supplemental 2019 Facility Agreement and the Second Supplemental 2021 Facility Agreement, which involve conditional variations to the terms of their respective revolving loan facilities. These agreements are part of the company’s ongoing financial strategy and involve continuing connected transactions under Hong Kong’s Listing Rules.

Changyou International Group Announces Unanimous Approval of AGM Resolutions

Changyou International Group Limited, a company incorporated in the Cayman Islands, announced that all proposed ordinary resolutions were passed at its Annual General Meeting held on 30 May 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates related to share issuance and repurchase. The unanimous approval of these resolutions by shareholders indicates strong support for the company’s current management and strategic direction.