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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

Virtual Mind Holding Company Limited

(1520)

Rating:52Neutral
Price Target:
HK$0.50
▼(-25.37%Downside)
The overall stock score is primarily impacted by weak financial performance due to declining revenue and negative profitability. Despite positive technical indicators suggesting a short-term uptrend, the negative valuation metrics weigh heavily. The absence of earnings call and corporate events insights leaves a gap in understanding future prospects.

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 through multiple streams, primarily focusing on technology-driven services and solutions. This includes offering software products, digital media content, and financial technology services. Key revenue streams include subscription fees for digital platforms, licensing of proprietary software, and advertising revenue from digital media properties. Virtual Mind also engages in strategic partnerships and alliances that enhance its market presence and provide additional income through collaborative ventures. These partnerships often involve revenue-sharing agreements or joint ventures that capitalize on emerging market opportunities and technological advancements.

Virtual Mind Holding Company Limited Financial Statement Overview

Summary
The company faces declining revenue, negative profitability margins, and persistent cash flow difficulties. Despite a stable balance sheet with reasonable leverage, negative returns and declining equity suggest financial strain.
Income Statement
45
Neutral
The company has been experiencing declining revenue, with a significant drop from 2019 to 2024. Gross profit margins have substantially decreased, and the net profit margin remains negative due to ongoing net losses. EBIT and EBITDA margins are also negative, indicating operational challenges. The revenue growth rate is volatile, with a recent increase in 2024 compared to 2023, but overall, the financial performance is weak with consistent losses.
Balance Sheet
55
Neutral
The balance sheet shows a reasonable debt-to-equity ratio, reflecting a manageable level of leverage. However, the company's equity ratio has been decreasing, indicating a reduced cushion of stockholders' equity against total assets. Return on equity is negative due to net losses, which impacts the financial health adversely. Despite these challenges, the company maintains a positive stockholders' equity.
Cash Flow
40
Negative
The company has faced persistent negative free cash flow, reflecting cash usage exceeding cash generation. Operating cash flow has been negative consistently, and there is no recent improvement in free cash flow trends. The absence of free cash flow growth and the inability to cover net income with operating cash flow highlight significant cash flow issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue129.59M66.33M89.62M139.82M114.47M
Gross Profit9.03M11.23M14.06M38.70M24.96M
EBITDA-55.28M-84.69M-49.20M-38.77M-58.68M
Net Income-76.63M-93.75M-65.88M-46.27M-68.11M
Balance Sheet
Total Assets195.07M214.19M288.37M234.83M283.70M
Cash, Cash Equivalents and Short-Term Investments66.51M43.80M11.21M15.35M78.55M
Total Debt26.60M43.91M31.46M7.95M4.97M
Total Liabilities65.05M65.47M79.07M38.58M45.27M
Stockholders Equity130.96M148.11M208.43M196.26M238.43M
Cash Flow
Free Cash Flow-79.09M-28.85M-82.49M-59.52M-20.75M
Operating Cash Flow-77.70M-27.73M-81.01M-58.79M-20.75M
Investing Cash Flow-1.24M-930.00K73.98M-730.00K4.42M
Financing Cash Flow53.84M10.24M46.66M-928.00K-6.01M

Virtual Mind Holding Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.67
Price Trends
50DMA
0.57
Positive
100DMA
0.53
Positive
200DMA
0.53
Positive
Market Momentum
MACD
0.03
Positive
RSI
60.60
Neutral
STOCH
61.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1520, the sentiment is Positive. The current price of 0.67 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.57, and above the 200-day MA of 0.53, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 61.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1520.

Virtual Mind Holding Company Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$528.61M3.846.38%2.07%7.08%190.74%
56
Neutral
$3.37B4.05-1.30%6.64%0.16%-63.79%
52
Neutral
HK$515.58M-57.25%95.39%30.86%
45
Neutral
HK$463.37M-1.72%14.05%56.22%
43
Neutral
HK$470.76M-5.04%46.93%63.40%
41
Neutral
HK$574.26M-47.70%59.71%3.93%
HK$403.41M4.402.94%10.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1520
Virtual Mind Holding Company Limited
0.67
0.35
109.38%
HK:2668
Pak Tak International Limited
0.15
-0.57
-79.17%
HK:0608
High Fashion International Limited
1.32
-0.15
-10.20%
HK:1906
Bonny International Holding Ltd.
0.34
>-0.01
-2.86%
HK:2298
Cosmo Lady (China) Holdings Co. Ltd.
0.24
0.04
20.00%
HK:3778
China Weaving Materials Holdings Ltd.
0.37
0.10
37.04%

Virtual Mind Holding Company Limited Corporate Events

Virtual Mind Extends Exclusivity for Proposed Acquisition
Jun 27, 2025

Virtual Mind Holding Company Limited has announced an extension of the exclusivity period for its proposed acquisition, allowing more time for due diligence. The extension, agreed upon mutually with the vendors, moves the deadline to August 30, 2025, while all other terms of the memorandum remain unchanged. The acquisition’s completion remains uncertain, and stakeholders are advised to exercise caution.

Virtual Mind Holding Appoints New Independent Director
Jun 18, 2025

Virtual Mind Holding Company Limited, incorporated in the Cayman Islands, has announced a change in its board of directors. Ms. Yeung Riviera has been appointed as an independent non-executive director effective June 17, 2025. Ms. Yeung meets all independence criteria and has no financial or other interests in the company or its subsidiaries, ensuring her unbiased contribution to the board. This appointment is expected to strengthen the company’s governance and align with regulatory requirements, potentially enhancing stakeholder confidence.

Virtual Mind Holding Announces Board and Management Restructuring
Jun 17, 2025

Virtual Mind Holding Company Limited, a company incorporated in the Cayman Islands, has announced significant changes in its board and management structure. The company has appointed Ms. Yeung Riviera as an independent non-executive director, replacing Ms. Lo Wing Sze, who resigned to focus on her business interests. Additionally, the company has restructured its board committees, with Mr. Mei Weiyi taking on new leadership roles. The company’s head office and principal place of business in Hong Kong have also been relocated. These changes are expected to impact the company’s governance and operational dynamics.

Virtual Mind Holding Company Limited Announces Board Composition and Roles
Jun 17, 2025

Virtual Mind Holding Company Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of both executive and independent non-executive directors, with specific members assigned to various committees such as Audit, Remuneration, Nomination, and Corporate Governance. This announcement clarifies the leadership structure and governance roles within the company, potentially impacting its strategic direction and operational oversight.

Virtual Mind Holding Secures Unanimous Shareholder Support at AGM
Jun 10, 2025

Virtual Mind Holding Company Limited announced that all resolutions proposed at its Annual General Meeting on June 10, 2025, were unanimously passed by shareholders. This includes the re-election of directors, approval of financial statements, and granting of mandates for share issuance and repurchase. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued strategic operations and governance stability.

Executive Director Resignation at Virtual Mind Holding
Jun 2, 2025

Virtual Mind Holding Company Limited, incorporated in the Cayman Islands, has announced the resignation of Mr. Gong Xiaohan as an executive director, effective June 2, 2025. Mr. Gong will transition to the role of senior vice president of operations within the company. The board expressed gratitude for his contributions and confirmed there are no disagreements or issues related to his resignation that need to be addressed.

Virtual Mind Holding Announces Board Composition and Roles
Jun 2, 2025

Virtual Mind Holding Company Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles within the company. The board consists of both executive and independent non-executive directors, with specific members assigned to 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 direction and operational oversight.

Virtual Mind Holding Announces Executive Changes
Apr 30, 2025

Virtual Mind Holding Company Limited, incorporated in the Cayman Islands, has announced a significant change in its executive team. Mr. Wong Wai Kai Richard has been appointed as the new Chief Operating Officer, effective April 30, 2025, while Mr. Chan Ming Leung Terence has resigned as Executive Director to focus on his own business. The company expressed gratitude for Mr. Chan’s contributions and welcomed Mr. Wong to his new role, highlighting the continuity and strategic management within the company.

Virtual Mind Holding Company Limited Announces Board Composition and Roles
Apr 30, 2025

Virtual Mind Holding Company Limited, incorporated in the Cayman Islands, has announced the list of its directors and their roles within the company. This announcement details the composition of the board, which includes executive and independent non-executive directors, and outlines their participation in various board committees, such as the Audit, Remuneration, Nomination, and Corporate Governance Committees. This update provides stakeholders with insights into the governance structure of the company, which is crucial for understanding the company’s strategic direction and decision-making processes.

Virtual Mind Holding Company Limited Announces 2025 AGM and Key Resolutions
Apr 30, 2025

Virtual Mind Holding Company Limited has announced its annual general meeting (AGM) to be held on June 10, 2025, in Hong Kong. The meeting will address ordinary business matters such as the approval of financial statements, re-election of directors, and the authorization of directors’ remunerations. Additionally, the AGM will consider special business resolutions, including granting directors the power to issue shares under certain conditions, which could impact the company’s capital structure and shareholder value.

Virtual Mind Completes Successful Share Placement to Bolster Growth
Apr 28, 2025

Virtual Mind Holding Company Limited has successfully completed the placing of 122,652,000 new shares under a general mandate, raising approximately HK$47.59 million. The funds raised will be allocated towards repaying outstanding liabilities, providing general working capital, and developing business operations. This strategic move enhances the company’s capital structure and positions it for future growth, while maintaining the independence of its shareholders.

Virtual Mind Enters Technology Licensing Agreement with N-Bridge Capital
Apr 7, 2025

Virtual Mind Holding Company Limited, through its wholly-owned subsidiary Virtual Mind New Consumption, has entered into a technology licensing cooperation agreement with N-Bridge Capital. This agreement allows Virtual Mind New Consumption to use the licensed technology for its business platform until December 2027. The agreement is part of the company’s continuing connected transactions, with Mr. Mei Weiyi, the Chairman, having a material interest due to his 40% stake in N-Bridge Capital. The transactions are expected to be recurring and conducted in the ordinary course of business, subject to reporting and annual review requirements under the Listing Rules.

Virtual Mind Holding Eyes Strategic Acquisition in N-Bridge Capital
Apr 7, 2025

Virtual Mind Holding Company Limited has announced a memorandum of understanding for a potential acquisition of up to 15% equity interest in N-Bridge Capital Group Limited. This strategic move involves negotiations with the vendors, including Mr. Mei Weiyi, the company’s chairman, and aims to strengthen Virtual Mind’s investment portfolio. The acquisition will be financed through the issuance of new shares at a discounted rate, and the company will conduct due diligence during an exclusivity period until June 30, 2025.

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: Jun 28, 2025