Ruicheng (China) Media Group Limited (1640) AI Stock Analysis

• Market Cap: HK$1.99B
• Dividend Yield: N/A
• Average Volume (3M): 472.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: 309.32%
• EPS Growth: -205.04%
• Country: HK
• Employees: 107
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.10
• Shares Outstanding: 560,000,000
• 10 Day Avg. Volume: 813,600
• 30 Day Avg. Volume: 472,733
• PEG Ratio: -0.03
• Price to Book (P/B): 8.84
• Price to Sales (P/S): 3.81
• P/FCF Ratio: 25.24
• 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: 40 Underperform
• Price Target: HK$3.50 ▼(-10.71% Downside)

Overall score is weighed down primarily by poor financial performance (declining revenue, persistent losses, and negative operating/free cash flow) and a weak technical trend (price below major moving averages with negative MACD). Valuation offers limited support because the negative P/E reflects unprofitability and there is no dividend yield provided.

Positive Factors

Diversified revenue streams

Multiple monetization channels (production sales, distribution, advertising, licensing, merchandise, events) provide structural revenue flexibility across content cycles. This reduces single-platform dependency and helps sustain cash inflows as individual segments fluctuate.

Content production and distribution capability

Owning production and distribution capabilities and content expertise creates durable asset value: IP, libraries and distribution relationships support recurring licensing, international sales and long-term monetization beyond single release windows.

Positive stockholders' equity

Maintaining positive equity provides a financial cushion versus insolvency risk, supporting continued operations and access to financing. It gives management room to restructure, pursue strategic partnerships, or weather content investment cycles over the medium term.

Negative Factors

Sharp revenue decline

A sustained drop in top-line scale erodes bargaining power with platforms and advertisers, reduces fixed-cost coverage and limits reinvestment in content. Structural revenue contraction threatens long-term competitiveness and ability to rebuild market share without significant strategic change.

Persistent negative operating and free cash flow

Continued negative operating and free cash flow undermines the company’s ability to self-fund productions, service debt or invest in growth. Over months this forces reliance on external financing, dilutive capital raises or cuts to content spend, harming long-term growth prospects.

Rising leverage and declining equity ratio

Increasing leverage raises interest burdens and refinancing risk, limiting strategic flexibility. A falling equity ratio reduces balance-sheet resilience during industry downturns and can constrain ability to secure favorable financing for content slates or distribution expansion.

Ruicheng (China) Media Group Limited Business Overview & Revenue Model

Company Description

Qian Xun Technology Limited, an investment holding company, provides various advertising services in the People's Republic of China and internationally. It operates through Advertisement and E-Commerce segments. The company offers television advertising; online advertising on platforms, such as websites, mobile applications, social media platforms, and search engines; outdoor advertising on LED screens on or in buildings, and metros or advertising light boxes in car shelters; and other advertising services on radio, magazines, newspapers, and livestreams. It also engages in the sale of used electronic products through e-commerce platforms; and provision of software-as-a-service. The company was formerly known as Ruicheng (China) Media Group Limited and changed its name to Qian Xun Technology Limited in February 2025. Qian Xun Technology Limited was founded in 2003 and is headquartered in Beijing, China.

How the Company Makes Money

Ruicheng (China) Media Group Limited generates revenue through multiple key streams, primarily from the production and distribution of films and television shows. The company earns money by producing content that is then sold to various platforms, including streaming services, television networks, and international distributors. Additionally, Ruicheng benefits from advertising revenues generated from its broadcasting channels. The company may also engage in partnerships with other media entities for co-productions or content licensing, which can provide additional financial resources. Furthermore, merchandise sales and event hosting related to its productions can contribute to its overall earnings.

Ruicheng (China) Media Group Limited Financial Statement Overview

Summary

Ruicheng (China) Media Group Limited is facing significant financial challenges, with declining revenues, low profitability, and increasing leverage. The negative cash flows further emphasize liquidity concerns. While the company has a positive stockholders' equity, the overall financial health remains weak, necessitating strategic improvements to stabilize and grow.

Income Statement

The company has experienced a significant decline in revenue over recent years, with revenue dropping from 845.82M in 2019 to 356.83M in 2024. The gross profit margin has also decreased, indicating reduced profitability. Furthermore, the company has reported negative EBIT and net income in recent years, illustrating ongoing operational challenges and unprofitability.

Balance Sheet

The debt-to-equity ratio has increased over time, suggesting rising leverage which could pose financial risks. The equity ratio has also declined, indicating reduced financial stability. However, the company maintains a positive stockholders' equity, which provides some level of financial stability.

Cash Flow

The company has struggled with negative operating and free cash flows in recent years, which highlights liquidity challenges. With no available positive free cash flow growth, the company's ability to generate cash from operations is concerning, which could impact future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	937.07M	356.83M	378.71M	412.66M	441.05M	446.99M
Gross Profit	45.18M	22.50M	23.57M	10.63M	20.57M	37.45M
EBITDA	-79.87M	-79.86M	-26.51M	-27.11M	12.65M	228.00K
Net Income	-77.60M	-123.70M	-23.47M	-11.38M	445.00K	2.84M
Balance Sheet
Total Assets	745.05M	459.19M	575.66M	574.16M	404.27M	407.41M
Cash, Cash Equivalents and Short-Term Investments	110.56M	33.97M	17.85M	5.08M	34.87M	17.77M
Total Debt	234.78M	96.64M	148.98M	117.18M	116.29M	126.69M
Total Liabilities	503.53M	305.39M	392.88M	368.04M	186.48M	190.09M
Stockholders Equity	241.55M	153.82M	182.79M	206.26M	217.64M	217.20M
Cash Flow
Free Cash Flow	-137.31M	53.88M	-36.50M	-33.33M	11.66M	-89.89M
Operating Cash Flow	-136.05M	53.96M	-36.50M	-33.33M	11.66M	-89.87M
Investing Cash Flow	-11.56M	2.29M	156.00K	623.00K	29.38M	-12.83M
Financing Cash Flow	220.55M	-40.13M	49.12M	2.92M	-7.25M	35.74M

Ruicheng (China) Media Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1640, the sentiment is Negative. The current price of 3.92 is above the 20-day moving average (MA) of 3.75, above the 50-day MA of 3.78, and below the 200-day MA of 4.09, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 47.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1640.

Ruicheng (China) Media Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1948	67 Neutral	HK$2.80B	21.87	8.02%	0.94%	40.20%	26.39%
1762	61 Neutral	HK$1.40B	613.33	0.45%	―	35.73%	-88.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6113	58 Neutral	HK$832.00M	42.98	23.44%	1.90%	3.04%	-22.93%
2422	56 Neutral	HK$1.40B	-21.35	-16.52%	―	10.61%	-1448.48%
0205	47 Neutral	HK$1.03B	-74.19	-6.02%	―	-4.13%	76.38%
1640	40 Underperform	HK$1.99B	-23.86	-33.53%	―	309.32%	-205.04%

Ruicheng (China) Media Group Limited Corporate Events

Qianxun Technology launches PayKet stablecoin platform to drive fintech pivot and new revenue streams

Qianxun Technology Limited has launched PayKet, a global digital currency financial services platform built on compliant stablecoins such as USDT and USDC, targeting cross-border trade and overseas users. PayKet offers cross-border trade settlement designed to shorten settlement cycles, reduce exchange-rate risk and fees versus traditional SWIFT payments, and improve capital turnover; it also integrates the Group’s IoT warehousing and AI price prediction to support supply-chain financing and low-risk, compliant digital currency wealth management, alongside enterprise wallets, developing consumer wallets, and a PayKet U card linked to major card networks for online and offline spending. The platform is underpinned by a compliance-focused infrastructure through RD Technologies, a licensed stored value and trust/corporate service provider in Hong Kong, and by cooperation with ROOFER SECURITIES, a licensed securities firm seeking a virtual asset service provider licence to assist in issuing compliant wealth management products. Management expects to leverage its existing annual overseas transaction volume of more than one million second-hand mobile phones for on-device and in-store promotion of PayKet, completing a closed-loop ecosystem from transactions and logistics to settlement and financing, and creating new revenue streams from payment, settlement and value-added service fees and commissions that could enhance overall margins and reposition the Group as a digital currency-focused fintech service provider for cross-border trade.

The most recent analyst rating on (HK:1640) stock is a Sell with a HK$3.00 price target. To see the full list of analyst forecasts on Ruicheng (China) Media Group Limited stock, see the HK:1640 Stock Forecast page.