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Wisdom Sports Group (HK:1661)
:1661
Hong Kong Market

Wisdom Sports Group (1661) AI Stock Analysis

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HK:1661

Wisdom Sports Group

(1661)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
HK$0.95
▲(10.47% Upside)
The score is held back primarily by weak financial performance—large ongoing losses and negative free cash flow despite strong revenue growth—while technicals provide meaningful support due to an established uptrend and constructive momentum. Valuation is also a constraint given the negative P/E and lack of dividend yield data.
Positive Factors
Strong Revenue Growth
A 142% revenue jump over 2023–2024 indicates accelerating market adoption and scale potential. Durable top-line growth provides a larger base to absorb fixed costs, supports investment in content and distribution, and materially improves prospects for margin recovery over months.
Low Leverage / Strong Equity Base
Very low debt and a high equity ratio give the company financial flexibility to fund operations or growth without immediate refinancing. This balance sheet stability reduces solvency risk, allowing management time to execute a path to profitability over the medium term.
Improving Gross Profit Margin
An improving gross margin signals efficiency gains or better pricing power at the unit level. If sustained as revenue scales, these structural improvements can translate into durable operating leverage and form the foundation for long-term margin expansion.
Negative Factors
Large Net Losses
Deep negative margins indicate core operations are not yet profitable and constrain reinvestment. Persistent heavy losses can force dilution or cutbacks, and create uncertainty about achieving positive operating leverage within a 2–6 month horizon without structural business changes.
Negative Free Cash Flow / Cash Burn
Substantial negative free cash flow signals ongoing cash burn that will require external funding or draw on reserves. Over a multi-month horizon this limits strategic optionality, increases financing risk, and pressures management to prioritize liquidity over long-term investments.
Negative Return on Equity
Negative ROE shows shareholder capital is not generating returns, reflecting structural profitability shortfalls. Without a clear turnaround, poor capital efficiency undermines long-term investor returns and raises questions about management's ability to allocate equity productively.

Wisdom Sports Group (1661) vs. iShares MSCI Hong Kong ETF (EWH)

Wisdom Sports Group Business Overview & Revenue Model

Company DescriptionWisdom 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 MoneyWisdom 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
Strong 2023–2024 revenue growth (+142%) is offset by continued heavy losses (net margin -67.36%, EBIT margin -57.22%) and weak cash generation (free cash flow -$44.9M). Balance sheet leverage is very low (debt-to-equity 0.02) with a high equity ratio (85.58%), but negative ROE and ongoing cash burn keep the score low.
Income Statement
35
Negative
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
45
Neutral
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue73.95M78.07M32.24M4.98M12.17M8.94M
Gross Profit12.68M10.14M-840.00K3.50M-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 Assets367.31M411.40M412.36M499.15M586.60M607.90M
Cash, Cash Equivalents and Short-Term Investments170.60M252.64M180.48M185.54M229.90M199.76M
Total Debt600.00K7.68M6.61M0.000.00324.00K
Total Liabilities33.90M59.93M43.76M38.38M52.26M48.09M
Stockholders Equity334.11M352.18M369.27M461.45M534.99M560.43M
Cash Flow
Free Cash Flow-91.09M-44.90M-40.93M24.58M25.80M-19.75M
Operating Cash Flow-90.61M-43.92M-40.05M24.59M26.95M-19.73M
Investing Cash Flow72.28M79.51M-55.89M19.94M-32.95M-7.08M
Financing Cash Flow53.00K38.64M6.37M0.00-331.00K-400.00K

Wisdom Sports Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.86
Price Trends
50DMA
0.81
Positive
100DMA
0.82
Positive
200DMA
0.82
Positive
Market Momentum
MACD
0.05
Negative
RSI
59.72
Neutral
STOCH
37.65
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 below the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.81, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 37.65 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$450.60M8.078.69%6.04%25.88%0.69%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
56
Neutral
HK$29.58B48.003.30%40.31%212.50%
50
Neutral
HK$186.49M-2.36-23.22%42.20%7.41%
48
Neutral
HK$336.20M1.68-57.01%
46
Neutral
HK$362.67M-1.85-6.83%-57.29%88.62%
41
Neutral
HK$2.07B-5.81-76.43%63.92%-62.77%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1661
Wisdom Sports Group
1.01
-0.08
-7.34%
HK:1159
Starlight Culture Entertainment Group Limited
2.20
1.25
131.58%
HK:1060
Damai Entertainment Holdings Limited
0.96
0.47
95.92%
HK:2230
Medialink Group Ltd.
0.23
0.05
30.11%
HK:2309
Birmingham Sports Holdings Limited
2.21
0.26
13.33%
HK:6698
STAR CM Holdings Limited
0.94
-2.46
-72.35%

Wisdom Sports Group Corporate Events

China Frontier Technology Group Moves to Replace Auditor Over Fees, Taps Prism Hong Kong
Jan 27, 2026

China Frontier Technology Group has announced a proposed change of auditor, with existing auditor Infinity CPA Limited set to resign upon shareholder approval at an extraordinary general meeting, and Prism Hong Kong Limited to be appointed to fill the resulting vacancy until the next annual general meeting. The shift follows unsuccessful negotiations with Infinity over audit fees and timing, and a competitive selection process in which Prism offered a lower fee and demonstrated strong experience auditing Hong Kong-listed companies, as well as operational efficiency and access to relevant experts. The board and audit committee state there are no other matters needing shareholder attention in relation to the resignation, emphasize that Infinity had only begun preliminary planning work for the 2025 audit, and expect the change to have no significant impact on the timetable or quality of the Group’s annual audit and results, underscoring a focus on cost management without compromising audit standards.

The most recent analyst rating on (HK:1661) stock is a Hold with a HK$0.96 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 Names Zhang Yingzhao as New Executive Director
Jan 23, 2026

China Frontier Technology Group has appointed 27-year-old Zhang Yingzhao as an executive director, effective 23 January 2026, in a move that adds a younger profile with international academic credentials to its leadership team. Zhang, who holds degrees from University College London and The University of Manchester, brings experience across executive support, business coordination, marketing communications and partnership development from roles at organisations including China International Futures, Beijing Nebula Technology and Hong Kong Blue Dream. She has entered into a three-year service contract, with remuneration set by the board and its remuneration committee, and her appointment is expected to support the company’s operational coordination and stakeholder engagement as it refines its strategic direction under a refreshed board composition.

The most recent analyst rating on (HK:1661) stock is a Hold with a HK$1.00 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
Jan 23, 2026

China Frontier Technology Group, previously Wisdom Sports Group and incorporated in the Cayman Islands, has confirmed the composition of its board of directors and independent non-executive directors as of 23 January 2026, underscoring its adherence to Hong Kong listing governance requirements. The company announced that Chairlady and executive director Ren Song, along with executive directors Zhang Panpan and Zhang Yingzhao and independent non-executive directors Leung Hiu Man, Gao Wenjuan and Peng Xiaoliu, will also assume defined roles across the audit, remuneration and nomination committees, a move that clarifies oversight responsibilities and may provide stakeholders with greater transparency over board structure and internal control functions.

The most recent analyst rating on (HK:1661) stock is a Hold with a HK$1.00 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 Announces Board and Audit Committee Reshuffle
Jan 13, 2026

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
Jan 13, 2026

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
Dec 24, 2025

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
Dec 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 27, 2026