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China Ecotourism Group Limited (HK:1371)
:1371
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China Ecotourism Group Limited (1371) AI Stock Analysis

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HK:1371

China Ecotourism Group Limited

(Frankfurt:1371)

Rating:41Neutral
Price Target:
HK$0.50
▲(51.52%Upside)
China Ecotourism Group Limited's overall stock score is primarily influenced by its poor financial performance, characterized by declining revenues, persistent losses, and insolvency risk. Technical analysis also reflects weak market sentiment. The negative P/E ratio and absence of dividend yield highlight valuation concerns. Immediate financial restructuring is necessary to improve the company's sustainability.

China Ecotourism Group Limited (1371) vs. iShares MSCI Hong Kong ETF (EWH)

China Ecotourism Group Limited Business Overview & Revenue Model

Company DescriptionChina Ecotourism Group Limited, an investment holding company, provides technology and operation services for lottery systems, terminal equipment, and game products in the lottery market in the People's Republic of China and internationally. The company offers video lottery systems, computer-generated ticket games (CTG), and KENO-type lottery systems. It is also involved in the research, development, and manufacture of lottery ticket scanners and terminal equipment, as well as lottery systems and equipment; and research and development, processing, production, and sale of natural and health food. In addition, the company provides treasury management services, as well as develops lottery transaction and management systems. The company was formerly known as China LotSynergy Holdings Limited and changed its name to China Ecotourism Group Limited in February 2021. China Ecotourism Group Limited was incorporated in 2000 and is headquartered in Southern, Hong Kong.
How the Company Makes MoneyChina Ecotourism Group Limited generates revenue through several key streams. The primary source of income is the development and operation of ecotourism sites, where the company charges admission fees and offers guided tours to visitors. Additionally, the company operates eco-friendly accommodations and hospitality services, providing lodging and amenities to tourists. The company may also engage in partnerships with local governments and environmental organizations to promote conservation efforts, receiving funding or financial incentives in return. These activities combined contribute to the company's earnings by attracting tourists interested in sustainable travel and leveraging natural and cultural resources.

China Ecotourism Group Limited Financial Statement Overview

Summary
The company's financial performance is extremely poor, with declining revenues, persistent losses, negative equity, and no cash generation. Urgent financial restructuring is needed.
Income Statement
20
Very Negative
The income statement reveals significant challenges. The gross profit margin has decreased, and the company has reported consistent net losses and negative EBIT and EBITDA margins. Revenue has declined sharply by over 50% from the previous year, indicating a significant downturn in business performance.
Balance Sheet
15
Very Negative
The balance sheet shows financial instability with negative stockholders' equity, indicating insolvency. The debt-to-equity ratio is not applicable due to negative equity, and total liabilities exceed total assets. This suggests high financial leverage and risk.
Cash Flow
10
Very Negative
Cash flow analysis is concerning, with zero operating cash flow and free cash flow. The company has not generated any free cash flow, and there is no operating cash flow to net income or free cash flow to net income ratio due to negative earnings.
BreakdownJun 2024Jun 2023Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue67.32M138.53M124.92M118.56M154.35M
Gross Profit27.69M41.88M49.28M27.52M61.49M
EBITDA-103.22M-79.72M-119.93M-388.67M13.94M
Net Income-271.97M-146.02M-280.91M-623.92M-550.10M
Balance Sheet
Total Assets114.60M504.61M573.21M747.47M1.08B
Cash, Cash Equivalents and Short-Term Investments27.67M104.88M107.97M76.43M64.73M
Total Debt64.56M454.33M330.89M373.17M433.58M
Total Liabilities534.91M642.20M472.98M579.17M549.40M
Stockholders Equity-652.81M-372.73M-143.60M-91.06M235.58M
Cash Flow
Free Cash Flow-38.08M-10.34M-53.31M-23.18M-45.38M
Operating Cash Flow-38.08M-7.33M-48.02M-21.29M-7.23M
Investing Cash Flow-1.06M-8.61M-4.91M45.09M-42.62M
Financing Cash Flow-15.48M18.33M78.09M-19.29M-28.32M

China Ecotourism Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.33
Price Trends
50DMA
0.36
Positive
100DMA
0.30
Positive
200DMA
0.24
Positive
Market Momentum
MACD
-0.02
Positive
RSI
46.20
Neutral
STOCH
38.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1371, the sentiment is Positive. The current price of 0.33 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.36, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 38.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1371.

China Ecotourism Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
HK$24.98B3.78-1.97%5.91%-0.17%-66.83%
41
Neutral
€50.96M
6.90%-80.61%
$10.63M-8.56%
67
Neutral
HK$89.40M0.30
60
Neutral
HK$40.00M10.5320.64%70.92%
44
Neutral
HK$80.98M-28.31%-0.38%51.41%
20
Underperform
HK$92.34M
63.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1371
China Ecotourism Group Limited
0.33
0.10
44.10%
DE:MRU3
Rich Goldman Holdings Limited
HK:0959
Century Entertainment International Holdings Limited
0.72
0.51
242.86%
HK:1655
Okura Holdings Limited
0.15
-0.05
-25.00%
HK:8308
Gudou Holdings Limited
0.06
-0.03
-33.33%
HK:8400
Asia Pioneer Entertainment Holdings Ltd.
0.04
0.01
33.33%

China Ecotourism Group Limited Corporate Events

China Ecotourism Group Announces Adjournment of Winding-Up Petition and Creditors’ Meeting
Jul 25, 2025

China Ecotourism Group Limited has announced a further adjournment of its winding-up petition hearing to September 29, 2025, following a court order. Additionally, the company has received court approval to convene a creditors’ meeting to consider a scheme of arrangement, with the meeting tentatively scheduled for September 24, 2025. These developments are part of the company’s ongoing efforts to address its financial challenges and restructure its obligations, which are crucial for its operational stability and future positioning in the industry.

China Ecotourism Group Announces Adjournment of Winding-Up Petition Hearing
Jul 23, 2025

China Ecotourism Group Limited has announced a further adjournment of its winding-up petition hearing, which was initially heard before the Master of the Hong Kong High Court on July 23, 2025. The hearing has been rescheduled to July 28, 2025, before a Companies Judge. The company has committed to keeping its shareholders and investors informed of any significant developments regarding the petition, advising caution when dealing in its shares.

China Ecotourism Group Completes Bond Exchange
Jul 9, 2025

China Ecotourism Group Limited announced the successful completion of an exchange of outstanding convertible bonds into new bonds. This move, approved by over 90% of bondholders, marks a significant step in the company’s financial restructuring efforts, potentially enhancing its market positioning and operational stability.

China Ecotourism Group Secures Major Lottery Terminal Projects
Jun 30, 2025

China Ecotourism Group Limited announced that its subsidiary, Guangzhou Lottnal Terminal Company Limited, has secured procurement projects for approximately 5,000 sports lottery terminals across several Chinese provinces. This achievement, along with securing a technical service project for the Guangdong Computer Welfare Lottery Sales Management System, underscores the Group’s strategy for sustained growth in lottery terminal equipment and technical systems, strengthening its market position.

China Ecotourism Group Appoints New Independent Non-Executive Director
Jun 25, 2025

China Ecotourism Group Limited has announced the appointment of Mr. Duan Xinxiao as an independent non-executive director. Mr. Duan has confirmed his independence according to the relevant listing rules and has no financial or other interests in the company’s business or connections with any core connected persons. This appointment is part of the company’s ongoing efforts to strengthen its board with independent oversight, potentially enhancing its governance and stakeholder confidence.

China Ecotourism Group Secures Key Lottery Project in Guangdong
Jun 25, 2025

China Ecotourism Group Limited announced that its subsidiary, Bestinfo Cyber, has won the bid for the Guangdong Province Computer Welfare Lottery Sales Management System Technical Service Project. This achievement underscores the company’s expertise in the lottery sector and its commitment to technological advancement and service excellence, potentially strengthening its market position and benefiting stakeholders by enhancing the operations of Guangdong Welfare Lottery.

China Ecotourism Group Appoints New Independent Director
Jun 17, 2025

China Ecotourism Group Limited has announced the appointment of Mr. Lau Fai Lawrence as an independent non-executive director and a member of the Audit Committee, effective from June 17, 2025. Mr. Lau is a certified public accountant with extensive experience in various companies, which is expected to enhance the company’s compliance with listing rules and strengthen its governance structure.

China Ecotourism Group Limited Announces Board and Committee Structure
Jun 17, 2025

China Ecotourism Group Limited has announced the composition of its board of directors and the establishment of three committees: Audit, Remuneration, and Nomination. This strategic organizational structure aims to enhance governance and operational efficiency, potentially strengthening the company’s position in the ecotourism sector.

China Ecotourism Group Proposes Bond Exchange to Streamline Debt Restructuring
Jun 13, 2025

China Ecotourism Group Limited has proposed an exchange of its outstanding New Option 1 Bonds for new unlisted bonds, aiming to streamline its debt restructuring process. This move is expected to save time and costs for the company, as it transitions the legal governance of these bonds from English law to Hong Kong law, potentially impacting stakeholders by altering the terms of bond holdings.

China Ecotourism Group Announces Change of Hong Kong Office Address
Jun 2, 2025

China Ecotourism Group Limited has announced a change in the address of its head office and principal place of business in Hong Kong. The new address is Unit 1202, 12/F., Landmark South, 39 Yip Kan Street, Wong Chuk Hang, Hong Kong. This update clarifies the company’s previous announcement on May 19, 2025, and is part of their ongoing operational adjustments.

China Ecotourism Group Pursues Debt Restructuring Amid Financial Challenges
May 30, 2025

China Ecotourism Group Limited has announced updates regarding the disclaimer of opinion in its annual report for the year ended June 30, 2024. The company is actively pursuing a debt restructuring plan, which includes a scheme of arrangement with creditors under Hong Kong law. They have engaged Acclime Corporate Advisory as their restructuring adviser and are in discussions with creditors to formulate a restructuring plan. Additionally, the company has applied to the High Court of Hong Kong for permission to convene a creditors’ meeting to consider and approve the proposed scheme, with a hearing scheduled for July 24, 2025. These steps are part of the company’s efforts to address financial challenges and keep stakeholders informed of significant developments.

China Ecotourism Group Announces Change of Head Office Address
May 19, 2025

China Ecotourism Group Limited has announced a change in the address of its head office and principal place of business in Hong Kong, effective from May 19, 2025. This move to a new location at Unit 1201, 12/F., Landmark South, 39 Yip Kan Street, Wong Chuk Hang, Hong Kong, is part of the company’s strategic operational adjustments, although the telephone and facsimile numbers will remain unchanged.

China Ecotourism Group Announces Adjournment of Winding-Up Petition Hearing
May 14, 2025

China Ecotourism Group Limited has announced an adjournment of a winding-up petition hearing to July 23, 2025, following a consensual application by the company and the petitioner. This development indicates ongoing legal proceedings that may impact the company’s operations and requires shareholders and investors to exercise caution.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025