China Metal Resources Utilization Ltd. (1636) AI Stock Analysis

• Market Cap: HK$277.86M
• Dividend Yield: N/A
• Average Volume (3M): 457.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -69.37%
• EPS Growth: -20.23%
• Country: HK
• Employees: 250
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): N/A
• Shares Outstanding: 448,155,730
• 10 Day Avg. Volume: 1,067,480
• 30 Day Avg. Volume: 457,946
• PEG Ratio: 0.04
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -23.78
• 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: 46 Neutral
• Price Target: HK$0.61 ▲(38.18% Upside)

The score is primarily held down by very weak financial performance (persistent losses, negative equity, and poor cash generation). Technical indicators show some near-term momentum, but not enough to offset the underlying financial distress, while valuation is not supportive due to a negative P/E and no dividend yield data.

Positive Factors

Diversified revenue streams

Multiple revenue channels—processing/refining scrap metals plus trading—provide structural flexibility versus single-product firms. Over 2–6 months this mix helps smooth cycle effects in metal prices, supports margin recovery opportunities, and enables redeployment of trading proceeds to operations.

Position in circular economy

Regulatory and corporate decarbonization trends create durable demand for recycled non‑ferrous metals. The firm’s sustainability positioning supports long‑term customer access, potential preferential contracts, and resilience as raw‑material recycling becomes a structural source for industrial supply chains.

Industrial partnerships provide demand stability

Established supplier and industrial off‑take relationships lower feedstock volatility and support throughput planning. Over months this reduces working‑capital swings, helps optimize plant utilization and supports marginal-cost advantages versus smaller, spot‑dependent recyclers.

Negative Factors

Negative shareholders' equity (insolvency risk)

Negative equity is a structural solvency flag that reduces financing options, raises creditor scrutiny, and limits ability to absorb shocks. Over the medium term it impairs capital investment, increases refinancing risk, and can force asset sales or restructuring if cash cushions remain inadequate.

Severe multi-year revenue decline

A ~69% revenue contraction indicates loss of scale and pricing or volume erosion. Sustained top‑line decline undermines fixed‑cost absorption and operational leverage, making margin recovery harder and reducing bargaining power with suppliers and customers over the medium term.

Weak cash generation

Persistent near‑zero operating cash flow and negative free cash flow signal structural inability to self‑fund operations or capex. Over months this forces dependence on external financing, constrains maintenance and growth spending, and raises the likelihood of restructuring under adverse market conditions.

China Metal Resources Utilization Ltd. Business Overview & Revenue Model

Company Description

China Metal Resources Utilization Limited, together with its subsidiaries, engages in the manufacturing and trading of copper and related products in the People's Republic of China. It operates through three segments: Recycled Copper Products, Power Transmission and Distribution Cables, and Communication Cables. The company processes recycled scrap copper and electrolytic copper to manufacture a range of copper products, including copper wire rods, wires, plates, and granules; and trades in aluminum and nickel products. It is also involved in the manufacture and sale of various power transmission and distribution, and communication cables. The company was incorporated in 2013 and is headquartered in Mianyang, the People's Republic of China.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of recycled non-ferrous metals such as copper, aluminum, and zinc. It profits from processing scrap metal, which involves collecting, sorting, and refining materials to create market-ready products. Additionally, China Metal Resources Utilization Ltd. engages in trading activities, where it purchases scrap metals at lower prices and sells the refined metals at a premium. Key partnerships with industrial clients and suppliers enhance its operational efficiency and provide stable demand for its products. The company's focus on sustainability and compliance with environmental regulations also positions it favorably in the market, potentially leading to partnerships with government and private sectors looking for eco-friendly solutions.

China Metal Resources Utilization Ltd. Financial Statement Overview

Summary

Financial statements indicate severe weakness: multi-year revenue decline and persistent losses with negative gross/net and EBIT/EBITDA margins, negative shareholders’ equity (insolvency risk), and weak operating/free cash flow with several years of negative free cash flow.

Income Statement

The company has experienced significant revenue decline and persistent losses over the years. The gross profit margin and net profit margin are negative, indicating an inability to cover costs and generate profits. EBIT and EBITDA margins are also negative, further highlighting operational inefficiencies and financial distress.

Balance Sheet

The company's balance sheet shows alarming signs of financial distress with negative stockholders' equity, indicating insolvency. The debt-to-equity ratio is not calculable due to negative equity, but the high level of debt relative to assets suggests significant financial risk. The equity ratio is negative, further emphasizing the precarious financial position.

Cash Flow

The cash flow situation is concerning, with operating cash flow frequently at or near zero, and free cash flow negative in several years. This indicates challenges in generating sufficient cash to fund operations and growth. The lack of positive free cash flow growth is a critical weakness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	354.69M	468.04M	837.70M	2.39B	7.72B	16.70B
Gross Profit	746.00K	-30.73M	-111.89M	-289.73M	151.60M	62.58M
EBITDA	-134.49M	-188.38M	-288.48M	-2.56B	219.77M	-150.13M
Net Income	-638.79M	-652.46M	-805.78M	-4.76B	-95.48M	-387.25M
Balance Sheet
Total Assets	1.07B	1.08B	1.38B	2.40B	6.73B	6.26B
Cash, Cash Equivalents and Short-Term Investments	880.00K	3.61M	18.33M	2.39M	11.95M	47.32M
Total Debt	1.71B	1.72B	1.65B	1.60B	1.80B	1.89B
Total Liabilities	5.43B	5.24B	4.89B	5.10B	5.02B	4.77B
Stockholders Equity	-4.36B	-4.16B	-3.51B	-2.70B	1.71B	1.49B
Cash Flow
Free Cash Flow	-25.47M	-18.04M	-69.81M	-212.38M	114.20M	134.85M
Operating Cash Flow	-25.47M	-17.66M	-69.31M	-212.29M	116.07M	151.79M
Investing Cash Flow	92.00K	-33.00K	14.36M	198.29M	-380.46M	-484.74M
Financing Cash Flow	7.35M	3.00M	70.91M	4.52M	228.05M	322.87M

China Metal Resources Utilization Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1636, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.62, and below the 200-day MA of 0.73, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1636.

China Metal Resources Utilization Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1258	74 Outperform	HK$61.26B	17.76	20.71%	2.28%	-6.03%	37.62%
0505	73 Outperform	HK$925.21M	4.04	9.41%	―	24.22%	-5.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0661	56 Neutral	HK$3.40B	-67.86	-1.52%	―	-4.02%	-1500.00%
1370	51 Neutral	HK$490.60M	-1.44	-41.19%	―	-6.51%	41.00%
1636	46 Neutral	HK$277.86M	-0.40	―	―	-69.37%	-20.23%

China Metal Resources Utilization Ltd. Corporate Events

China Metal Resources Intensifies Capital Hunt to Resolve Auditor’s Going‑Concern Disclaimer

China Metal Resources Utilization Limited has updated investors on efforts to address a disclaimer of opinion issued by its auditors on its 2024 financial statements, which was primarily driven by going-concern issues. The company is prioritising a critical debt restructuring that hinges on securing new equity investment of RMB300 million to RMB500 million, and during the recent period three Sichuan-based investors, including a subsidiary of a provincial-level state-owned enterprise, have been conducting due diligence on a potential capital injection. A previously announced RMB400 million convertible bond investment by Kaiyue remains delayed due to liquidity problems, though the company still expects this transaction to complete once those issues are resolved. While discussions with banks and tax authorities over restructuring various creditor claims are ongoing, management has indicated that definitive agreements are unlikely until fresh capital is raised, operations normalise, and major state-owned creditors agree to swap debt into equity. The group continues to implement cost control and working capital measures, but acknowledges these alone will not remove the auditors’ going-concern disclaimer, and notes that the bank accounts and operating assets of its main subsidiaries have been unfrozen, allowing operations to resume normal levels once the required capital is secured.

The most recent analyst rating on (HK:1636) stock is a Hold with a HK$0.64 price target. To see the full list of analyst forecasts on China Metal Resources Utilization Ltd. stock, see the HK:1636 Stock Forecast page.

China Metal Resources Utilization Faces Financial Uncertainty Amid Investment Efforts

China Metal Resources Utilization Ltd. announced that its auditors have issued a disclaimer opinion on its financial statements for the year ended December 31, 2024, due to concerns about the company’s ability to continue as a going concern. The company is actively seeking new investment, with a potential investor from Sichuan province conducting due diligence. Despite setbacks with previous investors, the company remains focused on securing RMB300 million to RMB500 million to drive its debt restructuring process. Additionally, the company is maintaining communications with creditors and managing cost control and working capital, although these measures alone are insufficient to resolve the financial concerns. The lifting of frozen bank accounts and assets has positioned the company to resume normal operations once the necessary investment is secured.

The most recent analyst rating on (HK:1636) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on China Metal Resources Utilization Ltd. stock, see the HK:1636 Stock Forecast page.