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

• Market Cap: HK$2.14B
• Dividend Yield: N/A
• Average Volume (3M): 472.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• 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: 39 Underperform
• Price Target: HK$3.00 ▼(-20.42% Downside)

The overall stock score of 39 reflects significant financial challenges, including declining revenues and profitability, negative cash flows, and a high debt-to-equity ratio. The technical analysis indicates a bearish trend, and the valuation is poor due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest a weak investment outlook.

Positive Factors

Market Position

Ruicheng's focus on high-quality content creation and expertise in storytelling positions it well to maintain and potentially grow its market presence in the competitive media industry.

Revenue Streams

Diverse revenue streams from content production, advertising, and partnerships provide resilience against industry volatility and potential for stable cash flows.

Positive Stockholders' Equity

Maintaining positive stockholders' equity provides a buffer against financial instability and supports long-term operational sustainability.

Negative Factors

Declining Revenue

Significant revenue decline over recent years indicates challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

Negative Cash Flows

Negative cash flows highlight liquidity issues, limiting the company's ability to invest in growth opportunities and manage debt effectively.

Rising Leverage

Increasing leverage poses financial risks, potentially leading to higher interest costs and reduced financial flexibility, affecting long-term stability.

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: 3.77
• 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 3.77 is below the 20-day moving average (MA) of 3.89, below the 50-day MA of 3.89, and below the 200-day MA of 4.09, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 35.06 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6113	58 Neutral	HK$784.00M	43.39	23.44%	1.90%	3.04%	-22.93%
1948	57 Neutral	HK$2.44B	19.90	8.02%	0.94%	40.20%	26.39%
2422	54 Neutral	HK$780.00M	-12.13	-16.52%	―	10.61%	-1448.48%
1762	53 Neutral	HK$1.21B	480.00	0.45%	―	35.73%	-88.89%
0205	49 Neutral	HK$700.68M	-50.00	-6.02%	―	-4.13%	76.38%
1640	39 Underperform	HK$2.14B	-24.92	-33.53%	―	309.32%	-205.04%

Ruicheng (China) Media Group Limited Corporate Events

Qian Xun Technology Announces Change in Authorized Representative

Qian Xun Technology Limited, a company incorporated in the Cayman Islands, has announced a change in its authorized representative. On October 3, 2025, Mr. Leng Xuejun resigned from his position as an authorized representative to focus on other commitments, though he will continue as an executive director. Mr. Li Tianzi has been appointed as the new authorized representative, effective the same day. The board welcomes Mr. Li to his new role.

Qian Xun Technology Explores Strategic Acquisition to Enhance Blockchain Solutions

Qian Xun Technology Limited, a company focused on blockchain technology, has entered into a non-legally binding memorandum of understanding to potentially acquire 100% equity interest in PUNKCODE TECHNOLOGY CO., LIMITED, a Web3 financial technology company based in Hong Kong. The acquisition aims to enhance Qian Xun’s capabilities in blockchain wallet solutions and cross-border payment systems, addressing issues such as low payment efficiency and high settlement costs in the second-hand digital transaction industry.