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Welife Technology Limited (HK:1703)
:1703
Hong Kong Market
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Welife Technology Limited (1703) AI Stock Analysis

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HK:1703

Welife Technology Limited

(1703)

Rating:56Neutral
Price Target:
Welife Technology's strong revenue growth and improved profitability are offset by significant challenges in cash generation and financial stability. The technical analysis does not indicate any strong trends, and lack of valuation metrics adds uncertainty. Overall, the stock presents moderate potential but with notable risks.

Welife Technology Limited (1703) vs. iShares MSCI Hong Kong ETF (EWH)

Welife Technology Limited Business Overview & Revenue Model

Company DescriptionWelife Technology Limited (1703) is a diversified technology company involved in the development and distribution of innovative solutions across various sectors. The company specializes in providing technology-driven products and services aimed at enhancing lifestyle and operational efficiency. Its core offerings include software solutions, hardware products, and integrated systems tailored to meet the needs of consumers and businesses alike.
How the Company Makes MoneyWelife Technology Limited generates revenue through a combination of product sales, service contracts, and strategic partnerships. The company earns money by selling its technology products directly to consumers and businesses, offering software licensing agreements, and providing subscription-based services. Additionally, Welife Technology leverages partnerships with other tech firms to expand its market reach and enhance its product offerings, leading to increased sales and recurring revenue streams. The company also invests in research and development to innovate and maintain a competitive edge in the technology sector.

Welife Technology Limited Financial Statement Overview

Summary
Welife Technology shows strong revenue growth and improved profitability, but faces challenges in cash generation and financial stability. While leverage has decreased, the company remains at risk due to its low equity base and insufficient cash flow generation.
Income Statement
75
Positive
Welife Technology has shown a significant improvement in its income statement metrics. The gross profit margin improved from 24.39% in 2023 to 30.69% in 2024, indicating better cost management. The net profit margin turned positive at 6.83% in 2024, a substantial recovery from the negative margins in previous years. Revenue growth was robust at 38.77% in 2024, demonstrating strong topline growth. However, the EBIT margin at 30.69% in 2024 reflects dependency on non-operating items, as EBITDA margin showed a decrease from the prior year.
Balance Sheet
60
Neutral
The balance sheet shows a mixed picture. While the debt-to-equity ratio improved to 1.81 in 2024, indicating reduced leverage, the company still carries significant debt levels. Return on Equity (ROE) was strong at 70.61% in 2024, showing efficient use of equity, but this is partly due to low equity levels. The equity ratio remains low at 22.24%, suggesting higher financial risk.
Cash Flow
40
Negative
The cash flow statement reveals challenges, as operating cash flow and free cash flow were reported as zero in 2024, which might indicate issues in cash generation. In previous years, free cash flow growth showed positive trends, but the current lack of operating cash flow is concerning. The absence of cash flows in 2024 suggests potential liquidity management issues.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue422.41M304.36M294.12M224.08M650.80M
Gross Profit129.66M113.61M112.23M73.93M266.61M
EBITDA32.94M57.38M64.28M3.35M76.36M
Net Income28.84M-6.94M-32.01M-124.27M-112.37M
Balance Sheet
Total Assets183.67M255.80M336.60M536.01M765.89M
Cash, Cash Equivalents and Short-Term Investments78.29M95.80M100.18M147.50M139.01M
Total Debt74.04M175.97M257.28M402.99M545.57M
Total Liabilities142.83M243.93M317.83M485.23M627.60M
Stockholders Equity40.84M11.87M18.77M50.78M138.30M
Cash Flow
Free Cash Flow0.0057.28M34.76M20.31M21.20M
Operating Cash Flow0.0059.88M37.96M32.41M64.91M
Investing Cash Flow0.0017.96M-23.20M-722.00K-62.68M
Financing Cash Flow0.00-62.27M-82.08M-3.20M-125.96M

Welife Technology Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.05
Price Trends
50DMA
0.05
Positive
100DMA
0.05
Positive
200DMA
0.05
Negative
Market Momentum
MACD
>-0.01
Neutral
RSI
100.00
Negative
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1703, the sentiment is Neutral. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1703.

Welife Technology Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$46.11B2.929.68%6.81%1.22%1.90%
76
Outperform
HK$136.77B40.2910.43%0.98%36.74%36.49%
70
Outperform
$38.10B10.448.59%7.26%20.21%23.24%
62
Neutral
$1.39B6.638.83%4.55%-20.69%-30.40%
57
Neutral
HK$25.10B4.09-2.03%5.85%-0.24%-68.05%
56
Neutral
HK$55.20M4.44
42
Neutral
HK$455.60M-4.41%54.40%-150.36%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1703
Welife Technology Limited
0.05
0.00
0.00%
HK:1787
Shandong Gold Mining Co., Ltd. Class H
24.30
7.61
45.60%
HK:1282
Glory Sun Financial Group Limited
0.17
0.06
54.55%
HK:3698
Huishang Bank
3.28
1.21
58.68%
HK:3303
Jutal Offshore Oil Services
0.65
0.14
27.20%
HK:2380
China Power International Development
3.05
-0.32
-9.60%

Welife Technology Limited Corporate Events

Welife Technology Announces Interim Results Corrections and Legal Settlements
Apr 15, 2025

Welife Technology Limited announced corrections to its unaudited interim results for the six months ended 30 September 2024, highlighting significant post-reporting period events. The company disclosed the disposal of its subsidiaries, Eternal Grand Group and Global Gourmet Group, to independent third parties, as well as ongoing litigations related to unpaid bonds and professional fees. A settlement was reached regarding a winding-up petition, resulting in a litigation loss of approximately HK$13,804,000 for the year ended 31 March 2024, and the petition was subsequently dismissed by the High Court of Hong Kong.

Welife Technology Faces Continued Trading Suspension Amid Compliance Review
Mar 16, 2025

Welife Technology Limited has received additional resumption guidance from the Hong Kong Stock Exchange, requiring an independent internal control review to ensure compliance with listing rules. Trading of the company’s shares remains suspended since November 2023, and will continue until the company addresses the issues and satisfies the Stock Exchange’s requirements.

Welife Technology Faces Winding-Up Petition Amidst Debt Dispute
Mar 12, 2025

Welife Technology Limited, incorporated in the Cayman Islands, is facing a winding-up petition filed by 杰晟思控股 (深圳) 有限公司 due to an alleged failure to repay debts amounting to RMB9,400,000. The petition is scheduled for a hearing on April 16, 2025, in the High Court of Hong Kong. The company’s assets and share transfers may be affected unless a court order states otherwise. Welife Technology has engaged legal counsel to protect its interests and considers the petition an abuse of process, with plans to potentially apply for its dismissal.

Welife Technology Limited Announces Board Composition and Roles
Mar 10, 2025

Welife Technology Limited has announced the composition of its board of directors and the roles within its board committees. The company has appointed executive, non-executive, and independent non-executive directors, with specific individuals assigned to the audit, nomination, and remuneration committees. This announcement provides clarity on the leadership structure, which may influence the company’s governance and strategic direction.

Welife Technology Seeks to Resume Trading Amidst Operational Continuity
Feb 27, 2025

Welife Technology Limited has submitted a resumption proposal to the Hong Kong Stock Exchange to resume trading of its shares, following a suspension. The company continues its restaurant operations and is working to fulfill the necessary conditions for resumption, including completing audits and addressing board composition issues.

Welife Technology Limited Corrects Board Meeting Date
Feb 26, 2025

Welife Technology Limited announced a correction to a previous announcement regarding the date of its board meeting. The meeting will take place on March 7, 2025, to approve various financial results and possibly recommend an interim dividend. This correction ensures stakeholders are accurately informed about the company’s financial reporting schedule.

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: Apr 07, 2025