A Metaverse Company (1616) AI Stock Analysis

• Market Cap: HK$58.09M
• Dividend Yield: N/A
• Average Volume (3M): 10.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -29.79%
• EPS Growth: -146.84%
• Country: HK
• Employees: 22
• Sector: Communication Services
• Sector Strength: 87
• Industry: Entertainment
• EPS (TTM): -0.01
• Shares Outstanding: 2,151,577,000
• 10 Day Avg. Volume: 12,134,000
• 30 Day Avg. Volume: 10,086,000
• PEG Ratio: 0.02
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.25
• 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: 42 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenue and negative cash flows. Technical analysis shows neutral momentum, but valuation metrics are concerning due to negative earnings and lack of dividends. Without any positive guidance or significant corporate events, the stock remains high-risk.

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 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

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
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 Assets	280.81M	325.15M	536.33M	785.09M	1.30B
Cash, Cash Equivalents and Short-Term Investments	13.35M	236.75M	10.89M	35.50M	12.35M
Total Debt	89.53M	87.08M	123.92M	147.72M	244.47M
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	1.15M	48.70M	-97.72M	29.87M	7.79M
Operating Cash Flow	1.17M	49.28M	-91.34M	30.56M	7.99M
Investing Cash Flow	-211.74M	212.74M	91.04M	36.34M	110.39M
Financing Cash Flow	-14.13M	-39.99M	-24.48M	-40.35M	-300.13M

A Metaverse Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1616, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$40.74B	-1.35	-12.05%	3.97%	2.04%	-69.68%
9958	47 Neutral	HK$36.00M	―	-372.16%	―	-87.05%	72.21%
1616	42 Neutral	HK$58.09M	―	-21.00%	―	-29.79%	-146.84%
1326	42 Neutral	HK$109.02M	―		―	60.31%	-73.59%
1566	41 Neutral	HK$60.28M	―		―	11.17%	89.08%
1740	38 Underperform	HK$57.06M	―	-76.84%	―	-91.55%	1.34%
8280	37 Underperform	HK$40.19M	―		―	―	―

A Metaverse Company Corporate Events

A Metaverse Company Announces Auditor Change to Enhance Cost Management

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

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

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.

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.