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Virtual Mind Holding Company Limited (HK:1520)
:1520
Hong Kong Market

Virtual Mind Holding Company Limited (1520) AI Stock Analysis

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HK:1520

Virtual Mind Holding Company Limited

(1520)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
HK$0.94
▼(-14.13% Downside)
The score is primarily pressured by ongoing losses and negative operating/free cash flow despite strong recent revenue growth. Technical indicators are bearish with the stock trading below key moving averages and a negative MACD, while valuation signals are constrained by a negative P/E driven by unprofitability.
Positive Factors
Revenue Growth
Nearly doubling revenue year-over-year signals durable market traction for the company's AI/VR/software offerings. Sustained top-line expansion provides a base to scale R&D, distribution and customer success investments, improving odds of eventual margin recovery and market share gains.
Balance Sheet Strength
High equity ratio and very low leverage give the company structural financial flexibility to absorb ongoing losses, fund product development, and pursue partnerships without excessive default risk. This capital structure supports multi-quarter execution on growth plans.
Diversified Revenue Model
A mix of subscription-based AI apps, one-time VR licenses, consulting services and partnerships reduces single-channel dependence. Recurring subscription and licensing revenue improves revenue predictability and customer retention, supporting sustainable cash inflows over time.
Negative Factors
Negative Profitability
Persistent negative operating and net margins indicate the business has not yet converted revenue scale into profits. Continued unprofitability erodes retained earnings, limits reinvestment capacity, and requires a clear strategic path to margin improvement for long-term viability.
Cash Flow Deficit
Ongoing negative operating and free cash flows create structural liquidity risk, forcing reliance on financing to fund operations. Over multiple quarters this can dilute shareholders, raise funding costs, and constrain the firm's ability to invest in product and go-to-market expansion.
Declining Gross Margin
A falling gross margin suggests rising costs or pricing pressure versus revenue gains, undermining the scalability of the business model. If margins continue to deteriorate, revenue growth will struggle to translate into sustainable profitability absent cost control or higher-value offerings.

Virtual Mind Holding Company Limited (1520) vs. iShares MSCI Hong Kong ETF (EWH)

Virtual Mind Holding Company Limited Business Overview & Revenue Model

Company DescriptionVirtual Mind Holding Company Limited, an investment holding company, designs, manufactures, and trades in apparel in the United States, Hong Kong, and internationally. The company provides its products under the private labels and its own proprietary labels. It also offers designing, marketing, and advertising services; and money lending services to individual consumers and small businesses. The company was formerly known as CEFC Hong Kong Financial Investment Company Limited and changed its name to Virtual Mind Holding Company Limited. Virtual Mind Holding Company Limited was incorporated in 2013 and is headquartered in Wanchai, Hong Kong.
How the Company Makes MoneyThe company generates revenue primarily through the sale of its software products and services, which include subscription-based models for AI applications and one-time licensing fees for virtual reality solutions. Additionally, Virtual Mind Holding Company Limited earns income from consulting services, where they assist businesses in integrating their technologies into existing systems. Partnerships with other tech firms and enterprises expand their market reach and enhance their product offerings, contributing to a diversified revenue stream. The company also explores new avenues such as digital advertising and content creation, further bolstering its financial performance.

Virtual Mind Holding Company Limited Financial Statement Overview

Summary
Virtual Mind Holding Company Limited is facing financial difficulties, with consistent losses and negative cash flows. Despite a strong equity position and low leverage, the company struggles with profitability and cash generation. The significant revenue growth is a positive sign, but operational efficiency needs improvement to achieve sustainable financial health.
Income Statement
The company has experienced significant revenue growth from 2023 to 2024, with a revenue increase of 95.4%. However, profitability remains a concern with negative EBIT and net income margins, indicating ongoing operational challenges. Gross profit margin has decreased over the years, suggesting pressure on cost management.
Balance Sheet
The balance sheet shows a relatively healthy equity position with an equity ratio of 67.1% in 2024. However, the company has a negative return on equity due to persistent net losses. The debt-to-equity ratio is low at 0.20, indicating low leverage, which is a positive aspect.
Cash Flow
The cash flow statement reveals negative operating and free cash flows, highlighting liquidity challenges. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income into cash. The company has been relying on financing activities to support cash needs.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue122.79M129.59M66.33M89.62M139.82M114.47M
Gross Profit6.41M9.03M11.23M14.06M38.70M24.96M
EBITDA-75.45M-55.28M-84.69M-49.20M-38.77M-58.68M
Net Income-91.13M-76.63M-93.75M-65.88M-46.27M-68.11M
Balance Sheet
Total Assets189.19M195.07M214.19M288.37M234.83M283.70M
Cash, Cash Equivalents and Short-Term Investments14.74M17.09M43.80M65.20M31.03M78.55M
Total Debt15.69M26.60M43.91M31.46M7.95M4.97M
Total Liabilities42.70M65.05M65.47M79.07M38.58M45.27M
Stockholders Equity147.73M130.96M148.11M208.43M196.26M238.43M
Cash Flow
Free Cash Flow-55.14M-79.09M-28.85M-82.49M-59.52M-20.75M
Operating Cash Flow-53.75M-77.70M-27.73M-81.01M-58.79M-20.75M
Investing Cash Flow7.73M-1.24M-930.00K73.98M-730.00K4.42M
Financing Cash Flow32.27M53.84M10.24M46.66M-928.00K-6.01M

Virtual Mind Holding Company Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.09
Price Trends
50DMA
1.18
Negative
100DMA
1.35
Negative
200DMA
1.06
Negative
Market Momentum
MACD
-0.05
Positive
RSI
37.95
Neutral
STOCH
9.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1520, the sentiment is Negative. The current price of 1.09 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.18, and above the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 9.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1520.

Virtual Mind Holding Company Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
HK$473.70M5.912.55%2.33%-4.07%-26.53%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
HK$800.60M7.264.94%6.04%0.72%2.24%
51
Neutral
HK$351.91M-19.77-2.76%4.55%-1.24%5.98%
46
Neutral
HK$647.29M-24.16-6.24%5.88%16.82%
45
Neutral
HK$951.84M-7.49-60.17%90.88%29.21%
44
Neutral
HK$1.49B-4.65-74.13%2.67%-54.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1520
Virtual Mind Holding Company Limited
0.99
0.33
50.00%
HK:2668
Pak Tak International Limited
0.29
-0.16
-35.23%
HK:0608
High Fashion International Limited
1.55
-0.16
-9.36%
HK:1906
Bonny International Holding Ltd.
0.43
0.03
7.50%
HK:2298
Cosmo Lady (China) Holdings Co. Ltd.
0.33
0.08
29.92%
HK:3778
China Weaving Materials Holdings Ltd.
3.20
-1.18
-26.94%

Virtual Mind Holding Company Limited Corporate Events

Virtual Mind Chairman Boosts Stake to Signal Confidence in Company’s Prospects
Jan 9, 2026

Virtual Mind Holding Company Limited has disclosed that its chairman and executive director, Mei Weiyi, purchased 1.5 million shares of the company on the market on 9 January 2026, bringing his total holdings to 5.25 million shares plus 17.5 million share awards, equivalent in aggregate to about 2.39% of the company’s issued share capital. The company states that Mei’s increased stake reflects his strong confidence in Virtual Mind’s future development prospects and is intended to support the firm’s sustainable and stable growth, protect the interests of the company and its shareholders, and bolster overall investor confidence in the stock.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Subsidiary Strikes Three-Year Sports Nutrition Partnership with COFCO Unit
Jan 8, 2026

Virtual Mind Holding Company Limited announced that its wholly-owned subsidiary Beijing 1520 Technology Co., Ltd. has signed a three-year strategic cooperation framework agreement with COFCO Food Technology Development (Beijing) Co., Ltd. to jointly develop the sports nutrition food market. The partnership includes establishing a joint laboratory to conduct research on sports aquatic products and peptide-based formulations that meet compliance standards, as well as creating a platform for technical exchanges among experts in food nutrition and water quality. Beyond R&D, the parties plan multi-dimensional cooperation across supply chain integration, market promotion and sales network building, supported by regular high-level meetings and dedicated liaison teams to coordinate implementation, which is expected to strengthen Virtual Mind’s capabilities and positioning in the sports nutrition segment and deepen its presence in the broader health industry value chain.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Shareholders Unanimously Approve Sale and Purchase Agreement at EGM
Jan 8, 2026

Virtual Mind Holding Company Limited has announced that shareholders overwhelmingly approved, by way of poll, an ordinary resolution at its extraordinary general meeting held on 8 January 2026 to approve, confirm and ratify a Sale and Purchase Agreement and the related transactions. All votes cast, representing 149,523,562 shares or 100% of the votes at the meeting, were in favour of the resolution, with no votes against, no abstentions required under listing rules, and no voting restrictions, signalling strong shareholder support for the transaction and providing clear board and investor backing for the company’s proposed corporate actions under that agreement.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind to Use HK$60 Million Warrant Proceeds to Digitise IP Services With Web3, AI and VR
Dec 24, 2025

Virtual Mind Holding Company Limited has issued a supplemental announcement on its share subscription facility and planned issue of warrants, explaining that the capital raise will fund a technology-driven upgrade of its traditional IP services business. The group intends to integrate Web3 blockchain, AI and VR into its IP product design, development and marketing processes, including putting IP products and membership identities on-chain, creating tamper-proof digital identities, and using AI-powered data analytics and interactive digital features to enhance authenticity, traceability, anti-counterfeiting controls and user engagement, with the warrant subscription expected to raise around HK$60 million for these initiatives.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Overhauls Top Management to Drive Compliance, Fintech and Web3 Strategy
Dec 24, 2025

Virtual Mind Holding Company Limited has reshuffled its top management, moving non-executive director Zheng Kaixin into the role of chief executive officer effective 24 December 2025 as part of an internal reorganisation aimed at strengthening compliance and technology-driven operations. At the same time, the group has appointed fintech veteran Yi Zuoxing as chief investment officer to oversee investor relations, communications and capital operations, and promoted existing executive Zeng Jing to co-chief financial officer alongside the current CFO, expanding financial oversight. The new leadership team brings deep experience in payment technology, digital finance, AI, and capital markets, notably including Zheng’s track record at Ant Group in large-scale payment system restructuring, cross-border payments and digital currency applications, which is expected to support the group’s ambitions in Web3.0 integration, regulatory compliance and global expansion, while Yi and Zeng reinforce investment management, governance and financial risk control for stakeholders.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Announces Board and Committee Composition
Dec 24, 2025

Virtual Mind Holding Company Limited, a Cayman Islands-incorporated company listed in Hong Kong under stock code 1520, has announced the current composition of its board of directors and board committees. The board comprises four executive directors, one non-executive director and three independent non-executive directors, who collectively oversee the company’s governance structure through four key committees: audit, remuneration, nomination and corporate governance. The company has clarified the chairmanships and memberships of each committee, underlining the roles of independent non-executive directors in leading core oversight bodies such as the audit and remuneration committees, which reflects an emphasis on regulatory compliance, board transparency and strengthened corporate governance practices for stakeholders.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Calls January 2026 EGM to Approve Key Sale and Purchase Agreement
Dec 19, 2025

Virtual Mind Holding Company Limited has called an extraordinary general meeting (EGM) of shareholders to be held in Hong Kong on 8 January 2026, with contingency arrangements in place for severe weather conditions in the city. The sole item of business is to seek shareholder approval, confirmation and ratification of a Sale and Purchase Agreement and to authorise any director to execute all necessary documents and actions, including non-fundamental variations or waivers, to implement the transaction, underscoring the agreement’s importance to the company’s future corporate actions and governance.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Extends Loan Assignment Deadline and Schedules EGM
Dec 16, 2025

Virtual Mind Holding Company Limited has announced an extension of the Long Stop Date for its Sale and Purchase Agreement related to the assignment of loans, now set for January 31, 2026. This extension allows additional time to fulfill the agreement’s conditions, with no other changes to the terms. Additionally, the company has scheduled an Extraordinary General Meeting (EGM) on January 8, 2026, to approve the agreement, with a temporary closure of the register of members to determine shareholder voting eligibility.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Clarifies Share Subscription Agreement
Dec 5, 2025

Virtual Mind Holding Company Limited has clarified details regarding its Share Subscription Facility Agreement, which involves issuing shares and warrants over the next three years. This strategic move, facilitated by an agreement with an alternative investment fund under the Global Emerging Markets Group, aims to bolster the company’s financial strategy and market positioning.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Delays Circular Dispatch for N-Bridge Acquisition
Dec 1, 2025

Virtual Mind Holding Company Limited has announced a further delay in the dispatch of a circular related to its acquisition of a 10% equity interest in N-Bridge Capital Group Limited. This acquisition is considered a disclosable and connected transaction under the Listing Rules. The delay is due to the additional time needed to prepare and finalize the necessary information for the circular, which is now expected to be dispatched by January 14, 2026. This postponement may affect the company’s timeline for completing the acquisition and could have implications for its strategic positioning and stakeholder engagement.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Delays Circular on Loan Assignment Transaction
Dec 1, 2025

Virtual Mind Holding Company Limited, listed on the Hong Kong Stock Exchange, announced a further delay in the despatch of a circular related to a discloseable and connected transaction involving the assignment of loans. The circular, which includes important details such as the Sale and Purchase Agreement and recommendations from the Independent Board Committee, was initially expected by December 1, 2025, but is now postponed to January 14, 2026, to allow more time for preparation.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Announces Details of Share Award Scheme
Nov 25, 2025

Virtual Mind Holding Company Limited has announced further details regarding its Share Award Scheme, specifically focusing on the performance targets and clawback mechanisms associated with the grants of award shares. The company has set performance targets that include milestone achievements in fundraising, new business ventures, and partnerships, with a requirement for recipients to serve the group for more than one year. Additionally, a clawback mechanism is in place to retrieve shares if a grantee harms the company’s interests or reputation through legal violations or professional misconduct.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Announces Board Restructuring
Nov 12, 2025

Virtual Mind Holding Company Limited has announced significant changes to its board of directors, impacting its governance structure. Effective from November 12, 2025, Ms. Yeung Riviera has resigned as an independent non-executive director to focus on her business pursuits. Mr. Cheung Pak To, BBS, with extensive experience in public administration and corporate governance, has been appointed as an independent non-executive director, while Ms. Kot Mui has been appointed as a non-executive director. These changes are expected to influence the company’s strategic direction and board dynamics.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Company Announces Board Composition and Committee Roles
Nov 12, 2025

Virtual Mind Holding Company Limited has announced the composition of its board of directors, detailing the roles and functions of each member. The board comprises executive, non-executive, and independent non-executive directors, who are also members of various committees such as Audit, Remuneration, Nomination, and Corporate Governance. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic decision-making and stakeholder engagement.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Grants 4 Million Award Shares to Employees
Nov 12, 2025

Virtual Mind Holding Company Limited announced the grant of 4,000,000 Award Shares to two employees under its Share Award Scheme, with a vesting period of 12 months and performance targets required for vesting. The market value of these shares is HK$4,720,000, and they are subject to a clawback mechanism under certain conditions, such as financial misstatements or misconduct by the employees. This move is part of the company’s strategy to incentivize employees without exceeding 1% of the shares in issue, and it does not require shareholder approval.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Delays Circular Dispatch for N-Bridge Capital Acquisition
Oct 31, 2025

Virtual Mind Holding Company Limited, a company incorporated in the Cayman Islands, announced a further delay in the dispatch of a circular related to its acquisition of a 10% equity interest in N-Bridge Capital Group Limited. This acquisition is classified as a disclosable and connected transaction under the Listing Rules. The delay in dispatching the circular, which includes important details and advice regarding the transaction, is due to the need for additional time to prepare and finalize the necessary information. The company now expects to dispatch the circular by December 1, 2025.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

Virtual Mind Holding Company Delays Circular Dispatch for Loan Assignment
Oct 31, 2025

Virtual Mind Holding Company Limited has announced a delay in the dispatch of a circular related to a discloseable and connected transaction involving the assignment of loans. The company cited the need for additional time to prepare and finalize the information required for the circular, which will now be dispatched by December 1, 2025. This delay may impact the timeline for shareholder engagement and decision-making regarding the transaction.

The most recent analyst rating on (HK:1520) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Virtual Mind Holding Company Limited stock, see the HK:1520 Stock Forecast page.

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: Jan 09, 2026