A Metaverse Company (1616) AI Stock Analysis

• Market Cap: HK$129.09M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -29.79%
• EPS Growth: -146.84%
• Country: HK
• Employees: 22
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 2,151,577,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 3.51
• P/FCF Ratio: 50.83
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.06 ▼(-1.67% 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.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance 1616's platform offerings and expand its market reach, supporting long-term revenue growth and competitive positioning.

Revenue Diversification

A diversified revenue model mitigates risk by reducing dependence on a single income stream, enhancing financial stability and resilience.

Leadership Changes

New leadership can bring fresh perspectives and strategies, potentially improving governance and operational oversight, impacting long-term performance.

Negative Factors

Declining Revenues

Significant revenue decline indicates challenges in market demand or competitive positioning, threatening long-term business sustainability.

Board Reshuffle and Compliance Issues

Frequent board changes and compliance issues can disrupt strategic continuity and erode stakeholder confidence, affecting long-term governance.

Negative Cash Flows

Negative cash flows limit the company's ability to invest in growth opportunities and meet financial obligations, risking future viability.

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

A Metaverse Company generates revenue through several key streams. Primarily, the company monetizes virtual real estate by allowing users to purchase, lease, or develop properties within its metaverse, creating a marketplace for digital assets. Additionally, in-game purchases, such as customizable avatars, skins, and virtual goods, contribute significantly to its earnings. Subscription models offer users premium access to exclusive content and features, providing a steady stream of recurring revenue. Furthermore, partnerships with brands and advertisers enable sponsored experiences and product placements, leveraging the platform's user base for targeted marketing campaigns. The company's focus on fostering a robust ecosystem within the metaverse enhances user retention and attracts new users, all of which are critical to its financial success.

A Metaverse Company Financial Statement Overview

Summary

The company is facing severe financial challenges, with declining revenues, persistent losses, and negative cash flows. The debt structure is manageable, but the inability to generate positive returns on equity and cash flow from operations poses 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
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	88.68M	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: Positive
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1740	47 Neutral	HK$95.45M	-0.98	-77.19%	―	-77.93%	11.26%
1616	45 Neutral	HK$129.09M	-3.08	―	―	-29.79%	-146.84%
8280	43 Neutral	HK$42.66M	-2.13	―	―	-46.31%	87.99%
1566	41 Neutral	HK$60.28M	-0.66	―	―	―	―
9958	39 Underperform	HK$58.68M	-1.05	―	―	-87.05%	72.21%
1326	39 Underperform	HK$70.08M	-0.21	―	―	60.31%	-73.59%

A Metaverse Company Corporate Events

A Metaverse Company Faces Operational Changes Amid Trading Suspension

A Metaverse Company has announced the resignation of its company secretary, Ms. Chan Yin Wah, effective from August 14, 2025, with no claims or disagreements reported. Additionally, the company’s principal place of business in Hong Kong has ceased operations, and trading of its shares has been suspended since August 15, 2025, due to ongoing provisional liquidation proceedings. Stakeholders are advised to exercise caution due to the associated risks.