A Metaverse Company (1616) AI Stock Analysis

• Market Cap: HK$71.00M
• Dividend Yield: N/A
• Average Volume (3M): 3.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -29.79%
• EPS Growth: -146.84%
• Country: HK
• Employees: 22
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.01
• Shares Outstanding: 2,151,577,000
• 10 Day Avg. Volume: 3,230,600
• 30 Day Avg. Volume: 3,944,466
• PEG Ratio: 0.02
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.96
• 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

• Rating: 52 Neutral
• Price Target: ―

The company's financial struggles, highlighted by declining revenues and profitability, are significant risks, resulting in a low financial performance score. However, technical indicators show strong upward momentum, contributing positively to the score. The negative P/E ratio and absence of dividend yield are additional valuation concerns. Overall, the stock score reflects these mixed factors, with technical strength somewhat balancing financial weaknesses.

A Metaverse Company Business Overview & Revenue Model

Company Description

Starrise Media Holdings Limited, an investment holding company, produces, distributes, licenses, and/or transfers drama series and films in the People's Republic of China. The company also leases equipment, costumes, and props relating to drama series and films production. The company was formerly known as Silverman Holdings Limited and changed its name to Starrise Media Holdings Limited in October 2017. Starrise Media Holdings Limited was incorporated in 2010 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

1616 generates revenue through a variety of channels, capitalizing on the growing demand for digital experiences. Key revenue streams include the sale and leasing of virtual real estate within the metaverse, where users and businesses can purchase or rent customizable spaces for various purposes, such as virtual storefronts, meeting rooms, or entertainment venues. Additionally, the company profits from in-game purchases and subscriptions within its metaverse-based gaming platforms, offering users enhanced features, virtual goods, and exclusive content. 1616 also provides digital content creation tools and services, enabling individuals and businesses to develop and monetize their own virtual experiences. Strategic partnerships with tech companies, entertainment brands, and advertisers further enhance 1616's earnings by integrating branded content and sponsorship opportunities within its platforms.

A Metaverse Company Financial Statement Overview

Summary

The company faces severe financial challenges, with a dramatic decline in revenue, negative profitability margins, and volatile cash flows. While the debt is manageable, negative returns on equity and cash flow issues highlight significant risks.

Income Statement

The company has experienced a significant decline in revenue from 2019 to 2024, with total revenue decreasing from $284.2M in 2019 to $16.7M in 2024. Gross profit margin and net profit margin have been negative, indicating challenges in covering costs and achieving profitability. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has been fluctuating but remains relatively moderate in recent years. However, the equity ratio has been declining, suggesting reduced shareholder equity relative to total assets. The return on equity is negative, driven by persistent net losses, indicating poor returns to shareholders.

Cash Flow

The company has experienced significant volatility in cash flows, with recent periods showing zero operating cash flow. Free cash flow has been inconsistent, reflecting challenges in generating cash from operations. The operating and free cash flow to net income ratios are unfavorable due to continuous net losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.68M	23.75M	38.09M	96.11M	94.12M
	Gross Profit
-24.04M	-53.37M	-173.06M	-215.82M	-40.39M
	EBIT
-22.19M	-6.77M	-241.53M	-341.00M	37.88M
	EBITDA
-22.51M	-2.38M	-208.11M	-499.24M	-232.93M
	Net Income Common Stockholders
-38.60M	-15.64M	-223.79M	-533.85M	-281.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.35M	236.75M	10.89M	35.50M	12.35M
	Total Assets
280.81M	325.15M	536.33M	785.09M	1.30B
	Total Debt
89.53M	87.08M	123.92M	147.72M	244.47M
	Net Debt
76.19M	-149.67M	113.03M	112.22M	232.12M
	Total Liabilities
116.28M	122.03M	317.81M	345.82M	432.19M
	Stockholders Equity
164.53M	203.12M	218.77M	436.81M	873.37M
Cash Flow		Free Cash Flow
0.00	48.70M	-97.72M	29.87M	7.79M
	Operating Cash Flow
0.00	49.28M	-91.34M	30.56M	7.99M
	Investing Cash Flow
0.00	212.74M	91.04M	36.34M	110.39M
	Financing Cash Flow
0.00	-39.99M	-24.48M	-40.35M	-300.13M

A Metaverse Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1616, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 84.31 is Negative, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1616.

A Metaverse Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
1616	52 Neutral	HK$71.00M	―	-21.00%	―	-29.79%	-146.84%
1326	42 Neutral	HK$111.61M	―		―	60.31%	-73.59%
1566	41 Neutral	HK$60.28M	―		―	11.17%	89.08%
9958	38 Underperform	HK$35.64M	―	-372.16%	―	-87.05%	72.21%
8280	37 Underperform	HK$38.34M	―		―	―	―
1740	37 Underperform	HK$75.74M	―	-76.84%	―	170.29%	30.69%

A Metaverse Company Corporate Events

A Metaverse Company Announces 2025 AGM and Key Resolutions

A Metaverse Company has announced its upcoming annual general meeting scheduled for May 26, 2025, in Beijing, China. The meeting will address several key agenda items, including the adoption of financial statements for the year ended December 31, 2024, the re-election of directors, and the re-appointment of Moore CPA Limited as auditor. Additionally, shareholders will vote on resolutions granting directors the authority to issue additional shares, which could impact the company’s capital structure and shareholder value.

A Metaverse Company Announces Board Changes

A Metaverse Company, listed on the Hong Kong Stock Exchange, has announced the retirement of Mr. Kwok Pak Shing as an independent non-executive director, who will not seek re-election at the upcoming annual general meeting. The company has appointed Mr. Song Dawei, a seasoned professional with a background in automotive, electronic technology, and communications, as a new independent non-executive director effective April 9, 2025. This change is expected to bring fresh perspectives to the board, enhancing the company’s strategic direction and governance.

A Metaverse Company Announces New Board Composition

A Metaverse Company, incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles, effective from April 9, 2025. The board consists of executive directors, including Mr. LIU Dong as Chairman and Mr. LIU Zongjun as CEO, alongside independent non-executive directors. The company has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as chairmen and members, which may streamline governance and decision-making processes.

A Metaverse Company Reports Increased Losses and Revenue Decline for 2024

A Metaverse Company reported a significant decline in its financial performance for the year ended December 31, 2024. The company experienced a 29.5% decrease in revenue to approximately RMB16.7 million and a gross loss of RMB22.5 million, which is an improvement from the previous year’s gross loss of RMB53.4 million. However, the loss attributable to equity shareholders increased to RMB38.6 million, up from RMB15.6 million in the previous year. The board has decided not to recommend any final dividend for the year.

A Metaverse Company Reschedules Board Meeting to Finalize Annual Results

A Metaverse Company has announced a change in the date of its board meeting, originally set for March 25, 2025, now rescheduled to March 31, 2025. This adjustment is due to the need for additional time to finalize the company’s consolidated annual results for the year ending December 31, 2024, which will also include considerations for a potential final dividend. This delay may impact stakeholders’ expectations regarding the company’s financial performance and dividend decisions.

A Metaverse Company Schedules Board Meeting for Financial Review

A Metaverse Company has announced a board meeting scheduled for March 25, 2025, to discuss and approve the audited consolidated annual results for the year ending December 31, 2024. The meeting will also consider the possibility of declaring a final dividend, which could impact the company’s financial strategy and shareholder returns.