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A Metaverse Company (HK:1616)
:1616
Hong Kong Market
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A Metaverse Company (1616) AI Stock Analysis

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HK:1616

A Metaverse Company

(1616)

Rating:45Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The company's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and persistent losses. While technical indicators show bullish momentum, overbought conditions suggest caution. The negative P/E ratio and lack of dividend yield further weigh down the valuation score.

A Metaverse Company (1616) vs. iShares MSCI Hong Kong ETF (EWH)

A Metaverse Company Business Overview & Revenue Model

Company Description1616 is a pioneering metaverse company that creates immersive virtual experiences connecting people, businesses, and communities in a shared digital space. Operating at the intersection of technology, entertainment, and social interaction, 1616 offers a wide array of products and services, including virtual reality environments, digital asset creation, and online social platforms. The company is dedicated to fostering innovation in digital economies, enabling users to interact, transact, and communicate in a fully immersive metaverse landscape.
How the Company Makes Money1616 generates revenue through multiple streams within the metaverse ecosystem. The primary sources of income include virtual real estate leasing and sales, where users and businesses purchase or rent digital spaces to establish their presence. Additionally, the company earns from transaction fees associated with its virtual currency, used for exchanging goods and services within the platform. 1616 also monetizes through partnerships with brands for virtual advertising and sponsorships, offering them exposure to the metaverse audience. Furthermore, the company offers premium subscriptions for enhanced user experiences and exclusive content, along with hosting virtual events and concerts that generate ticket sales and sponsorship revenue. Strategic partnerships with technology firms and entertainment companies also contribute significantly to 1616's revenue by expanding its reach and enriching its platform's offerings.

A Metaverse Company Financial Statement Overview

Summary
The company is experiencing severe financial challenges, with a significant decline in revenue, negative profit margins, and inconsistent cash flows. The negative return on equity and inability to generate positive cash flow pose significant financial risks.
Income Statement
20
Very Negative
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
45
Neutral
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
25
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.68M23.75M38.09M96.11M94.12M
Gross Profit-24.04M-53.37M-173.06M-215.82M-40.39M
EBITDA-22.51M-2.38M-208.11M-499.24M-232.93M
Net Income-38.60M-15.64M-223.79M-533.85M-281.55M
Balance Sheet
Total Assets280.81M325.15M536.33M785.09M1.30B
Cash, Cash Equivalents and Short-Term Investments13.35M236.75M10.89M35.50M12.35M
Total Debt89.53M87.08M123.92M147.72M244.47M
Total Liabilities116.28M122.03M317.81M345.82M432.19M
Stockholders Equity164.53M203.12M218.77M436.81M873.37M
Cash Flow
Free Cash Flow1.15M48.70M-97.72M29.87M7.79M
Operating Cash Flow1.17M49.28M-91.34M30.56M7.99M
Investing Cash Flow-211.74M212.74M91.04M36.34M110.39M
Financing Cash Flow-14.13M-39.99M-24.48M-40.35M-300.13M

A Metaverse Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.06
Price Trends
50DMA
0.04
Positive
100DMA
0.04
Positive
200DMA
0.04
Positive
Market Momentum
MACD
<0.01
Positive
RSI
75.46
Negative
STOCH
100.00
Negative
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 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 75.46 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$46.60B4.15-11.40%4.15%1.85%-42.71%
51
Neutral
HK$122.40M-372.16%-87.05%72.21%
45
Neutral
HK$129.09M-21.00%-29.79%-146.84%
43
Neutral
HK$94.41M-77.19%-77.93%11.26%
41
Neutral
HK$60.28M
11.17%89.08%
39
Underperform
HK$109.02M
60.31%-73.59%
37
Underperform
HK$46.37M
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1616
A Metaverse Company
0.06
0.04
200.00%
HK:9958
Litian Pictures Holdings Limited
0.36
-2.23
-86.10%
HK:1326
Transmit Entertainment Ltd.
0.04
0.01
33.33%
HK:1566
CA Cultural Technology Group Ltd.
0.05
0.00
0.00%
HK:1740
Values Cultural Investment Limited
0.09
-0.01
-10.00%
HK:8280
China Digital Video Ltd.
0.07
0.04
133.33%

A Metaverse Company Corporate Events

A Metaverse Company Faces Board Reshuffle and Compliance Challenge
Aug 13, 2025

A Metaverse Company has announced significant changes in its board composition, including the resignation of four directors due to their pursuit of other business commitments. This includes the resignation of the chairman and CEO, which has led to a temporary non-compliance with the Hong Kong Stock Exchange’s listing rules regarding the minimum number of independent non-executive directors. The company is actively seeking suitable candidates to fill these vacancies to ensure compliance within three months.

A Metaverse Company Announces New Board Leadership
Aug 13, 2025

A Metaverse Company, incorporated in the Cayman Islands, has announced changes to its board of directors, effective August 13, 2025. Ms. Y ANG Qinyan has been appointed as the Executive Director and will also serve as the Chairman of the Audit, Remuneration, and Nomination Committees. This strategic leadership appointment is expected to influence the company’s governance structure and operational oversight, potentially impacting its strategic direction and stakeholder relations.

A Metaverse Company Faces Board Reshuffle and Compliance Challenge
Aug 12, 2025

A Metaverse Company, listed on the Hong Kong Stock Exchange, announced significant changes in its board composition. Two independent non-executive directors, Mr. Huang Bo and Mr. Song Dawei, have resigned due to other business commitments, leading to non-compliance with the listing rules regarding the minimum number of independent directors. The company is actively seeking replacements to fill these vacancies within three months to restore compliance. Mr. Lam Kai Yeung has been appointed as the chairman of both the Remuneration and Nomination Committees.

A Metaverse Company Updates Board of Directors
Aug 12, 2025

A Metaverse Company, incorporated in the Cayman Islands, has announced the updated list of its board of directors and their roles, effective from August 12, 2025. The board comprises executive directors including Mr. LIU Dong as Chairman and Mr. LIU Zongjun as CEO, along with an independent non-executive director, Mr. LAM Kai Yeung, who chairs all three board committees. This restructuring signifies a strategic move to strengthen governance and oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

A Metaverse Company Faces Statutory Demand for Bond Payment
Aug 11, 2025

A Metaverse Company, incorporated in the Cayman Islands, has received a statutory demand from a creditor demanding payment of HK$33,391,777.78, which includes the outstanding principal and accrued interest on a bond issued by the company. The company is currently seeking legal advice regarding the statutory demand and warns shareholders and potential investors to exercise caution when dealing with its securities, as failure to meet the demand could result in a winding-up petition.

A Metaverse Company Addresses Audit Concerns with Strategic Action Plans
Aug 6, 2025

A Metaverse Company has announced a supplemental update regarding its 2024 and 2023 annual reports, addressing a qualified opinion issued by Moore CPA Limited due to insufficient audit evidence related to revenue and profit from its PRC entities. The company has implemented action plans to resolve tax payables and income tax issues, including selling equity in affected entities and enhancing internal controls. The board is confident in reducing the current tax payable to zero by the end of 2025, which will positively impact the company’s financial health and stakeholder confidence.

A Metaverse Company Announces Changes in Nomination Committee
Jul 31, 2025

A Metaverse Company, listed on the Hong Kong Stock Exchange, has announced a change in the composition of its Nomination Committee. Effective July 31, 2025, Ms. Yang Qinyan has been appointed as a member, replacing Mr. Liu Dong. The committee now consists of three members, enhancing its diversity and corporate governance practices. The Board believes these changes will strengthen the committee’s effectiveness, and Mr. Liu has expressed no disagreements with the decision.

A Metaverse Company Updates Nomination Committee Terms
Jul 31, 2025

A Metaverse Company has revised the terms of reference for its Nomination Committee, which is responsible for overseeing the appointment of directors to the board. The updated terms emphasize the inclusion of independent non-executive directors and gender diversity within the committee, potentially impacting the company’s governance and diversity initiatives.

A Metaverse Company Announces New Board of Directors
Jul 31, 2025

A Metaverse Company, incorporated in the Cayman Islands, has announced the composition of its board of directors as of July 31, 2025. The board includes executive directors such as Mr. LIU Dong as Chairman and Mr. LIU Zongjun as CEO, along with independent non-executive directors. The board has also established three committees: Audit, Remuneration, and Nomination, with various directors assigned as members or chairpersons. This announcement provides clarity on the leadership structure and governance of the company, potentially impacting its strategic direction and stakeholder confidence.

A Metaverse Company Announces Auditor Change to Enhance Cost Management
Jun 18, 2025

A Metaverse Company announced a change of auditor due to a disagreement over audit fees with Moore CPA Limited. The company appointed Asian Alliance (HK) CPA Limited as the new auditor, citing their extensive experience and cost-effective services. This change is expected to help the company manage costs better and support future business development, aligning with the interests of shareholders.

A Metaverse Company Announces AGM Results and Board Changes
May 26, 2025

A Metaverse Company announced the successful passage of all proposed resolutions at its Annual General Meeting held on May 26, 2025. The meeting also marked the retirement of an independent non-executive director and a change in the composition of board committees. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of the auditor, and granting of mandates to the board for issuing and repurchasing shares. This development reflects the company’s strategic continuity and governance stability, potentially reinforcing stakeholder confidence.

A Metaverse Company Announces New Board of Directors
May 26, 2025

A Metaverse Company has announced the composition of its board of directors and their respective roles, effective from May 26, 2025. This announcement is significant as it outlines the leadership structure and governance, which are crucial for strategic decision-making and operational efficiency within the company.

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: Aug 15, 2025