Qidian International Co., Ltd. (1280) AI Stock Analysis

• Market Cap: HK$8.82B
• Dividend Yield: N/A
• Average Volume (3M): 789.82K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.69
• Revenue Growth: 27.68%
• EPS Growth: -973.10%
• Country: HK
• Employees: 283
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.01
• Shares Outstanding: 1,837,256,100
• 10 Day Avg. Volume: 839,034
• 30 Day Avg. Volume: 789,818
• PEG Ratio: <0.01
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 1.98
• P/FCF Ratio: -18.18
• 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: 41 Neutral
• Price Target: HK$4.00 ▲(2.56% Upside)

Qidian International Co., Ltd. is facing severe financial difficulties, with significant losses and high leverage impacting its financial performance. Technical analysis suggests a bearish trend, though the stock is nearing oversold levels. Valuation metrics are unfavorable due to negative earnings and lack of dividends. The company's ability to improve its financial health and operational efficiency will be crucial for future performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for Qidian's digital content services, suggesting successful market expansion and product appeal.

Asset Growth

Asset growth reflects potential for future revenue generation and indicates strategic investments in expanding the company's operational capacity.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single source, enhancing financial stability and resilience against market fluctuations.

Negative Factors

Negative Profit Margin

A negative profit margin indicates significant operational inefficiencies, which could hinder long-term profitability and require strategic cost management.

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, necessitating debt reduction strategies.

Cash Flow Challenges

Negative cash flows from operations indicate liquidity issues, threatening the company's ability to sustain operations without external financing.

Qidian International Co., Ltd. Business Overview & Revenue Model

Company Description

Qidian International Co., Ltd., an investment holding company, engages in the retail and bulk distribution sale of household appliances, mobile phones, and computers in the People's Republic of China. The company operates in three segments: Traditional Business, New Retail Business, and All Other. It is involved in the bulk distribution of air-conditioners, and imported and general merchandises; and provision of after-sales, installation, and maintenance services for household appliances. The company sells its household appliances merchandise by bulk distribution to retailers and distributors, as well as operates a chain of retail stores for selling household appliances, and import and general merchandises. In addition, Qidian International Co., Ltd. sells its products through an online platform. Further, it provides community, logistics, and warehouse services. The company was formerly known as Huiyin Smart Community Co., Ltd. and changed its name to Qidian International Co., Ltd. in February 2020. Qidian International Co., Ltd. was founded in 1993 and is headquartered in Yangzhou, the People's Republic of China.

How the Company Makes Money

Qidian International generates revenue through multiple streams, primarily from subscription fees paid by users accessing its vast library of online literature. The company also earns income through advertising on its platforms and through partnerships with other media companies for adaptations of its literary works into films, television series, and animated content. Additionally, in-app purchases and merchandise sales related to popular titles contribute to its earnings. Strategic collaborations with authors and content creators further enhance its revenue potential, as the company shares profits derived from successful titles and adaptations.

Qidian International Co., Ltd. Financial Statement Overview

Summary

Qidian International Co., Ltd. faces significant financial challenges. The income statement shows substantial losses despite revenue growth, with a negative net profit margin of -502.74%. The balance sheet reveals high leverage and negative equity, indicating financial instability. Cash flow issues are evident with negative operating and free cash flows, highlighting the need for improved cash generation and operational efficiency.

Income Statement

The income statement reveals a challenging financial position with a significant decline in profitability. The gross profit margin is approximately 26.65%, but the company faces a negative net profit margin of -502.74% for the latest period, indicating substantial losses. Revenue growth is positive at 38.22%, but the negative EBIT and EBITDA margins highlight operational inefficiencies. The company needs to address its cost structure and operational challenges to improve profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to negative equity, indicating financial instability and potential solvency issues. The equity ratio is also negative, reflecting a reliance on debt financing. However, the company has managed to increase its total assets over the years, suggesting some asset growth. Improving equity and reducing debt are critical for financial health.

Cash Flow

Cash flow analysis shows negative operating cash flow, indicating cash outflows from core operations, and a negative free cash flow growth rate. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The company must enhance its cash generation capabilities to sustain operations and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.57M	441.99M	319.81M	262.35M	301.17M	351.73M
Gross Profit	124.34M	117.82M	61.75M	38.70M	37.06M	23.96M
EBITDA	-23.72M	-2.21B	80.85M	-89.81M	-6.66M	-64.81M
Net Income	-2.21B	-2.22B	55.85M	-136.77M	-60.04M	-83.21M
Balance Sheet
Total Assets	585.16M	596.13M	313.66M	238.44M	360.47M	414.66M
Cash, Cash Equivalents and Short-Term Investments	24.99M	27.68M	162.30M	9.21M	15.27M	36.46M
Total Debt	147.28M	129.25M	492.94M	461.24M	450.57M	477.42M
Total Liabilities	393.52M	385.88M	729.76M	709.15M	693.37M	720.13M
Stockholders Equity	182.95M	198.88M	-432.65M	-488.50M	-351.74M	-326.45M
Cash Flow
Free Cash Flow	-9.81M	-48.07M	43.56M	-31.94M	5.40M	-6.31M
Operating Cash Flow	-8.70M	-46.96M	43.68M	-31.89M	6.21M	-5.50M
Investing Cash Flow	2.08M	1.87M	66.09M	231.00K	-655.00K	4.16M
Financing Cash Flow	4.98M	-89.53M	44.17M	25.40M	-27.39M	14.13M

Qidian International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1280, the sentiment is Negative. The current price of 3.9 is below the 20-day moving average (MA) of 4.43, below the 50-day MA of 4.44, and above the 200-day MA of 3.83, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 30.97 is Neutral, neither overbought nor oversold. The STOCH value of 7.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1280.

Qidian International Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2420	67 Neutral	HK$1.63B	8.89	27.30%	3.73%	23.59%	―
9896	64 Neutral	HK$51.16B	20.11	20.87%	3.14%	13.14%	-19.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1020	52 Neutral	HK$667.47M	-9.92	-363.59%	―	-37.11%	-223.08%
2411	46 Neutral	HK$3.83B	-3.55	-29.04%	0.40%	-15.49%	-544.89%
1280	41 Neutral	HK$8.82B	-1.81	―	―	27.68%	-973.10%

Qidian International Co., Ltd. Corporate Events

Qidian International Announces Share Award Grant to Director

Qidian International Co., Ltd. has announced a proposed grant of share awards under its Share Award Scheme. The company will grant 1,200,000 new shares, representing approximately 0.07% of the total issued shares, to Mr. Wang Xianfu, a non-executive director. The shares will vest after twelve months and are subject to a one-year lock-up period upon vesting. The grant does not have performance targets, but the decision considered Mr. Wang’s experience in the education and training industry. This move could potentially align the interests of the director with the company’s long-term performance.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.

Qidian International Updates on Legal Proceedings Involving Subsidiary

Qidian International Co., Ltd. has announced an update on legal proceedings involving its subsidiary, Anhui Four Seas, and its controlling shareholder, Yangzhou Huiyin Commercial Chain. The People’s Court of Tianjiaan District has issued a ruling to preserve assets of Yangzhou Huiyin up to RMB61,076,715, which includes bank accounts, real estate, and other assets. This ruling is part of the enforcement of a previous judgment and does not currently impact the company’s operations or financial position. The company will continue to monitor the situation and provide updates as necessary.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.

Qidian International Embraces Digital Asset Platform for Liquor Tokenization

Qidian International Co., Ltd. has announced the tokenization of its raw liquor assets on a virtual asset operating platform, a move that is expected to enhance the company’s brand value and broaden its customer base. The company is not directly involved in the issuance or sale of these tokens, as all structuring and marketing are handled by Chunlianda and the SPV. This initiative is seen as a strategic step to introduce the company’s products to digital asset investors and establish partnerships for future digital asset and supply chain digitization projects.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.

China Qidian Guofeng Holdings Wins Legal Appeal, Removing Litigation Risk

China Qidian Guofeng Holdings Limited has announced a significant legal development concerning its subsidiary. The Jiangsu Yangzhou Intermediate People’s Court has overturned a previous judgment against the company, dismissing all claims by Nanjing Haihuitong. This ruling removes a litigation risk and is not expected to adversely affect the company’s operations, financial position, or cash flows.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.

China Qidian Guofeng Embraces Digital Transformation with Liquor Asset Tokenization

China Qidian Guofeng Holdings Limited has announced the tokenization of its raw liquor assets on the ADG platform, a decentralized RWA issuance and management platform on the Binance Chain. This move is expected to enhance the company’s brand value, diversify its investor base by providing global capital access, and promote the internationalization of both the Qidian Guofeng brand and Chinese liquor culture. The initiative aims to consolidate the company’s business foundation, leverage digital asset technologies, and position the company at the forefront of digital transformation in traditional asset sectors.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.

Qidian International to Acquire AI Technology Firm in HK$460 Million Deal

Qidian International Co., Ltd. has entered into an agreement to acquire an AI technology company for HK$460,000,000, which will be paid through the issuance of new shares. This acquisition, considered a discloseable transaction under Hong Kong’s Listing Rules, aims to enhance Qidian’s capabilities in the AI-driven e-commerce sector, though it remains subject to certain conditions.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.

Qidian International to Boost ‘Shengjiu’ Brand Visibility Through Strategic Advertising Agreement

Qidian International Co., Ltd. has entered into an Advertising Agreement with Empire Majesty through its subsidiary, Guizhou Renhuai, to promote the ‘Shengjiu’ brand. The agreement, valued at RMB450,000,000 over three years, involves the issuance of 33,610,009 Consideration Shares for the first year’s services. This move is part of a strategic initiative to expand the brand’s visibility using airport and high-speed railway station advertising media. The issuance of shares under a general mandate reflects the company’s strategic use of equity to finance its marketing efforts, potentially enhancing its market presence and shareholder value.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.

Qidian International Reports Improved Revenue Amidst Continued Losses

Qidian International Co., Ltd. reported its interim financial results for the first half of 2025, showing an increase in revenue to RMB 181,907 thousand from RMB 173,335 thousand in the same period of 2024. Despite the revenue growth and improved gross profit margin from 18.9% to 20.5%, the company still faced a loss before tax of RMB 21,461 thousand, which is an improvement from the previous year’s loss of RMB 37,940 thousand. The results indicate a challenging financial environment but show signs of operational improvements.

The most recent analyst rating on (HK:1280) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Qidian International Co., Ltd. stock, see the HK:1280 Stock Forecast page.