China Ecotourism Group Limited (1371) AI Stock Analysis

• Market Cap: HK$28.72M
• Dividend Yield: N/A
• Average Volume (3M): 170.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 66.22%
• EPS Growth: 73.39%
• Country: HK
• Employees: 185
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.03
• Shares Outstanding: 154,422,100
• 10 Day Avg. Volume: 78,472
• 30 Day Avg. Volume: 170,119
• PEG Ratio: 0.01
• Price to Book (P/B): -0.11
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 2.77
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.17 ▼(-22.27% Downside)

The score is driven down primarily by weak financial health (ongoing losses and negative equity), with bearish technicals reinforcing downside risk. Valuation provides limited support because losses make the P/E less meaningful and there is no stated dividend yield.

Positive Factors

Improving Operating Cash Flow

A shift to positive operating cash flow is a durable improvement in cash generation, reducing reliance on external financing. Sustained OCF supports working capital, reinvestment in eco-lodges and experiences, and provides buffer to navigate seasonal tourism cycles over months.

Diversified Revenue Streams

Multiple revenue lines—attraction tickets, eco-lodging, packaged tours and ancillary services—spread demand risk and enable cross-selling. Partnerships with local governments and conservation groups create stable distribution channels and recurring demand from sustainable tourism segments.

Leading Ecotourism Position

Positioning as a leading ecotourism operator and focus on sustainable practices create brand credibility and barriers to entry. Strong alignment with environmental and cultural conservation supports long-term demand from eco-conscious travelers and underpins partnership leverage with local authorities.

Negative Factors

Negative Shareholders' Equity

Negative shareholders' equity denotes a capital deficiency and constrains financing flexibility. Over months, this limits ability to raise debt or equity on favorable terms, increases insolvency risk under stress, and hampers funding for capex or expansion initiatives.

Persistent Losses and Margin Pressure

Ongoing negative EBIT and net margins, coupled with worsening gross margin, signal structural cost or pricing issues. Without sustainable margin recovery, the business will struggle to convert revenue into profits long term, limiting reinvestment and weakening competitiveness.

Modest FCF Growth and Cash Volatility

Although OCF turned positive, modest free cash flow growth and a low OCF-to-net-income ratio indicate fragile cash conversion. This limits capacity for steady capex, maintenance of eco-assets, and cushions against seasonal or demand shocks over the coming months.

China Ecotourism Group Limited Business Overview & Revenue Model

Company Description

China Ecotourism Group Limited (1371) is a leading player in the ecotourism sector in China, focusing on sustainable tourism practices that promote environmental conservation and cultural heritage. The company operates in various segments, including nature-based tourism, eco-lodging, and travel services, offering a range of products and services designed to enhance the travel experience while minimizing ecological impact. Through its innovative ecotourism initiatives, the company aims to attract environmentally conscious travelers and promote responsible tourism practices across China.

How the Company Makes Money

China Ecotourism Group Limited generates revenue through multiple streams primarily centered around its ecotourism offerings. Key revenue sources include ticket sales from ecotourism attractions, accommodation fees from eco-lodges and resorts, and travel packages that include guided tours and experiences in natural settings. The company also benefits from partnerships with local governments and conservation organizations, which help in promoting its services and attracting tourists. Additionally, it may generate income through ancillary services such as transportation, merchandise sales, and food services within its tourism sites, further enhancing its overall earnings.

China Ecotourism Group Limited Financial Statement Overview

Summary

Financials are weak overall: despite 13.77% revenue growth and improving operating cash flow (turning positive), the company still has persistent losses (negative net/EBIT margins) and a deteriorating gross margin. The balance sheet is a major risk with negative shareholders’ equity, indicating financial instability.

Income Statement

The company has shown some revenue growth, with a 13.77% increase in the latest year. However, profitability remains a significant concern, with negative net profit margins and EBIT margins indicating ongoing operational challenges. The gross profit margin has decreased compared to previous years, suggesting pressure on cost management.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is negative due to negative equity, which is a critical risk factor. Return on equity is positive but misleading due to negative equity, and the equity ratio is concerning, reflecting a weak financial position.

Cash Flow

Cash flow from operations has improved, turning positive in the latest year, which is a positive sign. Free cash flow growth is modest, and the free cash flow to net income ratio is nearly 1, indicating efficient cash conversion despite net losses. However, the operating cash flow to net income ratio is low, highlighting potential cash flow volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.89M	111.89M	67.32M	138.53M	124.92M	118.56M
Gross Profit	18.57M	40.11M	27.69M	41.88M	49.28M	27.52M
EBITDA	-36.25M	-36.20M	-103.22M	-79.72M	-119.93M	-388.67M
Net Income	-72.36M	-72.36M	-271.97M	-146.02M	-280.91M	-623.92M
Balance Sheet
Total Assets	157.56M	157.56M	114.60M	504.61M	573.21M	747.47M
Cash, Cash Equivalents and Short-Term Investments	78.56M	78.56M	27.67M	104.88M	107.97M	76.43M
Total Debt	162.64M	162.64M	64.56M	454.33M	330.89M	373.17M
Total Liabilities	648.97M	648.97M	534.91M	642.20M	472.98M	579.17M
Stockholders Equity	-723.19M	-723.19M	-652.81M	-372.73M	-143.60M	-91.06M
Cash Flow
Free Cash Flow	26.87M	27.76M	-38.08M	-10.34M	-53.31M	-23.18M
Operating Cash Flow	27.89M	27.89M	-38.08M	-7.33M	-48.02M	-21.29M
Investing Cash Flow	-128.00K	-128.00K	-1.06M	-8.61M	-4.91M	45.09M
Financing Cash Flow	1.43M	1.43M	-15.48M	18.33M	78.09M	-19.29M

China Ecotourism Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1371, the sentiment is Negative. The current price of 0.22 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.23, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 37.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1371.

China Ecotourism Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1655	67 Neutral	HK$152.40M	2.06	―	―	―	―
8400	64 Neutral	HK$40.00M	9.09	24.70%	―	28.47%	-4.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0959	44 Neutral	HK$92.34M	-10.27	―	―	―	63.51%
1371	43 Neutral	HK$28.72M	-0.40	―	―	66.22%	73.39%
0070	43 Neutral	HK$93.06M	-0.94	-10.06%	―	1.24%	-96.15%
8308	42 Neutral	HK$88.88M	-1.30	-34.01%	―	-0.31%	34.83%

China Ecotourism Group Limited Corporate Events

China Ecotourism Advances Court-Backed Debt Restructuring and Extends HK$15 Million Facility

China Ecotourism Group Limited has provided a quarterly update on steps taken to address the auditor’s disclaimer of opinion in its annual report for the year ended 30 June 2025, focusing on a comprehensive debt restructuring and liquidity support. The company has formulated a creditors’ scheme of arrangement under Hong Kong’s Companies Ordinance, obtained High Court approval to convene a creditors’ meeting, secured the requisite statutory majorities from creditors to approve the scheme, and received a sanction order from the High Court, which will become effective once the scheme’s conditions precedent are fulfilled and registered. In parallel, the hearing of a winding-up petition against the company has been adjourned to 2 March 2026, and a HK$15 million working capital facility from a new investor to its wholly owned subsidiary, China Lot Synergy Group Limited, has been renewed and extended to 30 June 2026, bolstering near-term liquidity while the restructuring proceeds. The company has cautioned shareholders and potential investors to exercise care in dealing in its shares as it continues to work through the restructuring process.

The most recent analyst rating on (HK:1371) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on China Ecotourism Group Limited stock, see the HK:1371 Stock Forecast page.

China Ecotourism Group Wins Sports Lottery Terminal Projects in Key Provinces

China Ecotourism Group Limited, through its subsidiary Guangzhou Lottnal Terminal Company Limited, has secured several sports lottery terminal procurement and maintenance projects across key provinces in China, namely Guangdong, Jiangsu, and Zhejiang, in recent months. These achievements highlight the company’s strong market presence as these provinces collectively represent 25% of national lottery sales, underscoring substantial industry recognition and potential operational expansion.

The most recent analyst rating on (HK:1371) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Ecotourism Group Limited stock, see the HK:1371 Stock Forecast page.

China Ecotourism Group Secures Major Zhejiang Sports Lottery Terminal Contracts

China Ecotourism Group Limited announced that its subsidiary, Guangzhou Lottnal Terminal Company Limited, has secured multiple successful bids for Zhejiang Sports Lottery terminal projects this year, totaling approximately 2,500 traditional sales terminals. This achievement underscores the Group’s strong positioning in the vibrant and growing sports lottery market in China, characterized by increasing sales revenue and market standardization.

The most recent analyst rating on (HK:1371) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Ecotourism Group Limited stock, see the HK:1371 Stock Forecast page.

China Ecotourism Group Announces Adjournment of Winding-Up Petition Hearing

China Ecotourism Group Limited has announced a further adjournment of its winding-up petition hearing, which has been postponed for three months following a joint application by consent summons. The company aims to keep its shareholders and investors informed of any significant developments and advises caution when dealing in its shares.

The most recent analyst rating on (HK:1371) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Ecotourism Group Limited stock, see the HK:1371 Stock Forecast page.

China Ecotourism Group Limited AGM Resolutions Unanimously Approved

At the annual general meeting held on November 26, 2025, China Ecotourism Group Limited successfully passed all proposed resolutions with unanimous shareholder approval. These resolutions included the re-election of directors, authorization of director remuneration, reappointment of auditors, and granting of mandates to the board for share repurchase and issuance. The unanimous approval reflects strong shareholder confidence in the company’s governance and strategic direction.

The most recent analyst rating on (HK:1371) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Ecotourism Group Limited stock, see the HK:1371 Stock Forecast page.

China Ecotourism Group Announces Closure of Register for AGM

China Ecotourism Group Limited has announced the closure of its register of members to determine the entitlement for attending and voting at the upcoming Annual General Meeting (AGM) scheduled for November 26, 2025. This move is crucial for the company as it ensures that only registered shareholders can participate in the AGM, potentially impacting shareholder engagement and decision-making processes.

The most recent analyst rating on (HK:1371) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Ecotourism Group Limited stock, see the HK:1371 Stock Forecast page.

China Ecotourism Group Limited Announces 2025 Annual General Meeting

China Ecotourism Group Limited has announced its upcoming annual general meeting scheduled for November 26, 2025, in Hong Kong. The meeting will address several key agenda items, including the adoption of financial statements, re-election of directors, and authorization of board powers concerning share purchases and issuance. These resolutions are expected to impact the company’s governance and strategic direction, potentially influencing its market positioning and shareholder interests.

The most recent analyst rating on (HK:1371) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Ecotourism Group Limited stock, see the HK:1371 Stock Forecast page.