Welife Technology Limited (1703) AI Stock Analysis

• Market Cap: HK$78.20M
• Dividend Yield: N/A
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -24.50%
• EPS Growth: -182.81%
• Country: HK
• Employees: 224
• Sector: Technology
• Sector Strength: 88
• Industry: Restaurants
• EPS (TTM): <0.01
• Shares Outstanding: 1,150,000,000
• 10 Day Avg. Volume: 449,500
• 30 Day Avg. Volume: 3,958,833
• PEG Ratio: <0.01
• Price to Book (P/B): 6.34
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 9.11
• 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: 56 Neutral
• 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.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and effective product offerings, which are crucial for long-term business sustainability and competitiveness.

Profitability Improvement

Improved profitability reflects better cost management and operational efficiency, enhancing the company's financial health and ability to reinvest in growth.

Reduced Leverage

Reduced leverage decreases financial risk and increases financial flexibility, allowing the company to better manage its capital structure and pursue strategic opportunities.

Negative Factors

Cash Flow Challenges

Lack of cash flow generation poses liquidity risks and limits the company's ability to fund operations and growth initiatives, potentially affecting long-term viability.

Trading Suspension

Prolonged trading suspension due to compliance issues can erode investor confidence and limit access to capital markets, impacting the company's financial flexibility and growth prospects.

Winding-Up Petition

A winding-up petition indicates severe financial distress and legal challenges, which could lead to asset liquidation and disrupt business operations if not resolved.

Welife Technology Limited Business Overview & Revenue Model

Company Description

Welife Technology Ltd. engages in the operation of the restaurant. It offers dining and banquet services. The company was founded on June 7, 2018, and is headquartered in Hong Kong.

How the Company Makes Money

Welife 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	228.62M	228.62M	422.41M	304.36M	294.12M	224.08M
Gross Profit	30.14M	30.14M	129.66M	113.61M	112.23M	73.93M
EBITDA	-1.93M	-1.93M	32.94M	57.38M	64.28M	3.35M
Net Income	-31.97M	-31.97M	28.84M	-6.94M	-32.01M	-124.27M
Balance Sheet
Total Assets	79.27M	79.27M	183.67M	255.80M	336.60M	536.01M
Cash, Cash Equivalents and Short-Term Investments	22.74M	22.74M	78.29M	95.80M	100.18M	147.50M
Total Debt	11.97M	11.97M	74.04M	175.97M	257.28M	402.99M
Total Liabilities	70.57M	70.57M	142.83M	243.93M	317.83M	485.23M
Stockholders Equity	8.70M	8.70M	40.84M	11.87M	18.77M	50.78M
Cash Flow
Free Cash Flow	-3.93M	6.06M	0.00	57.28M	34.76M	20.31M
Operating Cash Flow	-2.54M	7.45M	0.00	59.88M	37.96M	32.41M
Investing Cash Flow	-3.50M	1.94M	0.00	17.96M	-23.20M	-722.00K
Financing Cash Flow	-33.71M	-62.93M	0.00	-62.27M	-82.08M	-3.20M

Welife Technology Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Negative
• 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:1703, the sentiment is Neutral. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1703	56 Neutral	HK$78.20M	-12.45	-28.84%	―	-24.50%	-182.81%
8120	50 Neutral	HK$67.08M	-1.17	-72.12%	―	-19.83%	5.64%
8412	48 Neutral	HK$51.34M	-9.62	-75.14%	―	-56.48%	74.85%
8428	48 Neutral	HK$76.14M	-2.91	―	―	―	―
3666	43 Neutral	HK$103.57M	-1.09	―	―	-40.25%	-0.84%
8232	41 Neutral	HK$115.96M	-13.71	-77.73%	―	-2.95%	56.44%

Welife Technology Limited Corporate Events

Welife Technology Limited Reports Strong Interim Financial Results

Welife Technology Limited, a company listed on the Hong Kong Stock Exchange, reported a significant improvement in its financial performance for the six months ending September 30, 2025. The company achieved a 32.3% increase in revenue to approximately HK$131.5 million and a profit of approximately HK$9.3 million, reversing a loss from the previous year. Despite these positive results, the board decided not to recommend any dividend for the period.

Welife Technology Addresses Non-Compliance in Recent Acquisition

Welife Technology Limited, through its subsidiary Shining Proud Limited, has acquired the entire issued share capital of two target companies for HK$5,621,000. However, the company failed to comply with the notification and announcement requirements under the Hong Kong Stock Exchange’s Listing Rules due to an oversight. The company has acknowledged this non-compliance and has taken remedial actions, including enhancing compliance training and revising internal control systems, to prevent future occurrences.

Welife Technology Limited Announces Upcoming Board Meeting

Welife Technology Limited has announced that its Board of Directors will meet on November 28, 2025, to discuss and approve the unaudited consolidated interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, which could have implications for the company’s financial strategy and stakeholder returns.

Welife Technology Announces Director Resignation

Welife Technology Limited announced the resignation of Mr. Char Shik Ngor Stephen from his roles as an independent non-executive director, chairman of the nomination committee, and member of the audit and remuneration committees. Mr. Char resigned to focus on his personal business development and confirmed no disagreements with the board. The company expressed gratitude for his contributions.

Welife Technology Limited Adjourns Winding-Up Petition Hearing

Welife Technology Limited, a company listed on the Stock Exchange of Hong Kong, has announced the adjournment of a winding-up petition hearing to February 9, 2026. The company disputes the facts leading to the petition and plans to oppose it vigorously, having engaged legal advisers to support its defense. The outcome of this legal matter could significantly impact the company’s operations and stakeholder interests.