Wisdom Sports Group (1661) AI Stock Analysis

• Market Cap: HK$167.46M
• Dividend Yield: N/A
• Average Volume (3M): 56.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 42.20%
• EPS Growth: 7.41%
• Country: HK
• Employees: 27
• Sector: Communication Services
• Sector Strength: 97
• Industry: Media & Entertainment
• EPS (TTM): -0.12
• Shares Outstanding: 190,294,200
• 10 Day Avg. Volume: 102,330
• 30 Day Avg. Volume: 56,290
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 2.20
• P/FCF Ratio: -3.82
• 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$0.84 ▼(-2.79% Downside)

The overall stock score is primarily impacted by financial performance challenges, including unprofitability and weak cash flow. Technical analysis indicates a bearish trend, and valuation metrics are poor due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

A 142% year-over-year revenue surge shows durable market demand and the company’s ability to scale top line. Sustained high growth provides runway to absorb fixed costs and invest in product and distribution, improving the odds of eventual margin recovery.

Balance Sheet Strength

A very high equity ratio and minimal leverage provide financial stability and flexibility. Low debt reduces interest burden and bankruptcy risk, enabling management to fund content, marketing or product development without immediate refinancing pressure.

Improving Gross Margin

An improving gross margin signals operational efficiencies or better product mix that can scale with revenue. If sustained, higher gross margins create structural room to cover SG&A and move toward positive EBIT as the business grows.

Negative Factors

Large Operating Losses

Very deep operating and net losses are a structural risk: they erode equity and require either sustained external funding or rapid margin improvement. Without durable path to profitability, the business model faces long-term viability and capital-raising challenges.

Negative Free Cash Flow

Material negative free cash flow weakens financial self-sufficiency and forces reliance on financing or equity raises. Even with low debt, persistent cash burn can dilute shareholders or curtail investment in content and distribution critical for long-term growth.

Small Operating Scale

A very small workforce constrains in-house production, sales, and operational capacity as the company scales. Sustained revenue growth may outstrip internal capabilities, creating reliance on partners, outsourcing, or rapid hiring which can stress margins and execution.

Wisdom Sports Group Business Overview & Revenue Model

Company Description

Wisdom Sports Group, an investment holding company, engages in the provision of events operation and marketing services in the People's Republic of China. The company operates through two segments, Events Operation and Marketing; and Sports Services. The Events Operation and Marketing segment provides marketing services in conjunction with sports-related competitions, including corporate sponsorship. The Sports Services segment offers services primarily to government, marathon runners, and media companies in conjunction with sports-related competitions. This segment is also involved in the live broadcasting of tournaments and marathon timing; and program production and equipment rental activities. The company was formerly known as Wisdom Holdings Group and changed its name to Wisdom Sports Group in September 2015. Wisdom Sports Group was founded in 2000 and is headquartered in Beijing, China.

How the Company Makes Money

Wisdom Sports Group generates revenue primarily through athlete representation fees, which are earned as a percentage of the contracts negotiated for the athletes they represent. Additionally, the company earns income from organizing and managing sports events, charging entry fees, and securing sponsorship deals. Sports marketing initiatives, including brand partnerships and endorsements, also contribute significantly to the company's earnings. Strategic partnerships with sports organizations and brands help amplify revenue streams by creating collaborative opportunities for marketing and event promotions.

Wisdom Sports Group Financial Statement Overview

Summary

The company exhibits strong revenue growth but remains unprofitable with negative net profit and EBIT margins. The balance sheet is stable with low leverage, but negative cash flow and ongoing net losses highlight financial challenges.

Income Statement

The company has experienced significant revenue growth from 2023 to 2024, with a revenue increase of 142%. Despite this, the company remains unprofitable with a negative net profit margin of -67.36% and a negative EBIT margin of -57.22% in 2024. The gross profit margin improved to 12.98% in 2024, indicating some operational efficiency gains. Overall, while revenue is growing, profitability remains a significant challenge.

Balance Sheet

The company's balance sheet shows a strong equity base with an equity ratio of 85.58% in 2024, suggesting stability. The debt-to-equity ratio is low at 0.02, indicating minimal leverage. However, the return on equity is negative due to continued net losses, highlighting ongoing financial difficulties despite a solid equity position.

Cash Flow

The company's cash flow situation is concerning with a negative free cash flow of -$44.9 million in 2024. The operating cash flow to net income ratio is 0.83, which suggests some conversion of accounting losses into cash flow, but overall cash generation is weak. Free cash flow growth is negative, indicating challenges in generating cash despite increased revenue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.95M	78.07M	32.24M	4.98M	12.17M	8.94M
Gross Profit	12.68M	10.14M	-840.00K	3.50M	-212.00K	-381.00K
EBITDA	-76.75M	-44.11M	-68.42M	-12.68M	-42.76M	-48.21M
Net Income	-87.83M	-52.58M	-87.18M	-75.48M	-47.85M	-43.98M
Balance Sheet
Total Assets	367.31M	411.40M	412.36M	499.15M	586.60M	607.90M
Cash, Cash Equivalents and Short-Term Investments	170.60M	252.64M	180.48M	185.54M	229.90M	199.76M
Total Debt	600.00K	7.68M	6.61M	0.00	0.00	324.00K
Total Liabilities	33.90M	59.93M	43.76M	38.38M	52.26M	48.09M
Stockholders Equity	334.11M	352.18M	369.27M	461.45M	534.99M	560.43M
Cash Flow
Free Cash Flow	-91.09M	-44.90M	-40.93M	24.58M	25.80M	-19.75M
Operating Cash Flow	-90.61M	-43.92M	-40.05M	24.59M	26.95M	-19.73M
Investing Cash Flow	72.28M	79.51M	-55.89M	19.94M	-32.95M	-7.08M
Financing Cash Flow	53.00K	38.64M	6.37M	0.00	-331.00K	-400.00K

Wisdom Sports Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1661, the sentiment is Positive. The current price of 0.86 is above the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.75, and above the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.39 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1661.

Wisdom Sports Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	66 Neutral	HK$446.75M	7.93	8.69%	6.04%	25.88%	0.69%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1060	56 Neutral	HK$27.49B	47.00	3.30%	―	40.31%	212.50%
1159	47 Neutral	HK$329.11M	1.75	―	―	-57.01%	―
6698	46 Neutral	HK$398.54M	-1.95	-6.83%	―	-57.29%	88.62%
2309	41 Neutral	HK$1.90B	-5.47	-76.43%	―	63.92%	-62.77%
1661	40 Underperform	HK$167.46M	-2.06	-23.22%	―	42.20%	7.41%

Wisdom Sports Group Corporate Events

China Frontier Technology Group Announces Board and Audit Committee Reshuffle

China Frontier Technology Group, the Hong Kong-listed company formerly known as Wisdom Sports Group, has announced a reshuffle of its board and board committees, underscoring ongoing evolution in its corporate governance structure. Executive director Chang Hai Song and independent non-executive director Wu Mingcong have resigned with effect from 13 January 2026, citing changes in work arrangements and other business commitments, and both confirmed there are no disputes or claims against the company and nothing requiring shareholder or regulator attention. Following Wu’s departure, he has stepped down from the audit committee, and the company has appointed independent non-executive director Peng Xiaoliu to the audit committee from the same date, maintaining committee continuity and preserving independent oversight as the board composition is streamlined to two executive directors and three independent non-executive directors.

The most recent analyst rating on (HK:1661) stock is a Hold with a HK$0.70 price target. To see the full list of analyst forecasts on Wisdom Sports Group stock, see the HK:1661 Stock Forecast page.

China Frontier Technology Group Sets New Board and Committee Structure

China Frontier Technology Group, formerly Wisdom Sports Group and incorporated in the Cayman Islands, has announced the composition of its board of directors and key governance committees with effect from 13 January 2026. The board now comprises two executive directors—Chairlady Ren Song and Zhang Panpan—and three independent non-executive directors, Gao Wenjuan, Leung Hiu Man and Peng Xiaoliu, who together populate the audit, remuneration and nomination committees under the leadership of Ren and Leung. The refreshed governance structure, with clearly delineated committee roles and a majority of independent oversight on the audit committee, underscores the company’s effort to strengthen corporate governance and board accountability as it operates under its new corporate identity and strategic direction.

The most recent analyst rating on (HK:1661) stock is a Hold with a HK$0.70 price target. To see the full list of analyst forecasts on Wisdom Sports Group stock, see the HK:1661 Stock Forecast page.

Wisdom Sports Group Sells Loss-Making Subsidiary for HK$8 Million and Retains Major Prepayment Asset

The company has agreed to sell the entire issued share capital of a subsidiary (the Target Company) for HK$8 million under a sale and purchase agreement signed on 24 December 2025, and to assign a large prepayment asset of approximately RMB96.23 million (HK$105.76 million) from the target group to its Shenzhen Qianke unit, meaning this prepayment will not be part of the disposal. Upon completion, the Target Company will cease to be a subsidiary and its results will no longer be consolidated, a move driven by the target group’s weakening financial performance, including declining media content revenues and a second consecutive year of operating losses; the transaction is classified as a discloseable transaction under Hong Kong listing rules, requiring announcement but not shareholder approval, and remains conditional, so investors are cautioned that it may or may not proceed.

The most recent analyst rating on (HK:1661) stock is a Sell with a HK$0.69 price target. To see the full list of analyst forecasts on Wisdom Sports Group stock, see the HK:1661 Stock Forecast page.

China Frontier Technology Group Replaces Auditor Over Fee Dispute

China Frontier Technology Group has announced a change of auditor after Infinity CPA Limited resigned effective 18 December 2025 due to an inability to agree on the audit fee for the financial year ending 31 December 2025. Both the board and Infinity stated there were no other disagreements or issues related to the resignation, and the company emphasized that Infinity had not yet begun audit work for 2025 and that the change is not expected to affect the timing or conduct of its annual audit or results. On the recommendation of its audit committee, the board has appointed Prism Hong Kong Limited as the new auditor to fill the vacancy until the next annual general meeting, citing Prism’s experience with listed companies, technical competence, independence and market reputation, and asserting that the new appointment is in the best interests of the company and its shareholders.

The most recent analyst rating on (HK:1661) stock is a Sell with a HK$0.69 price target. To see the full list of analyst forecasts on Wisdom Sports Group stock, see the HK:1661 Stock Forecast page.