Qingdao AInnovation Technology Group Co. Ltd Class H (2121) AI Stock Analysis

• Market Cap: HK$3.08B
• Dividend Yield: N/A
• Average Volume (3M): 3.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: -3.78%
• EPS Growth: 20.83%
• Country: HK
• Employees: 962
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.11
• Shares Outstanding: 563,544,430
• 10 Day Avg. Volume: 2,627,426
• 30 Day Avg. Volume: 3,000,445
• PEG Ratio: -1.32
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 2.45
• P/FCF Ratio: -75.06
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$5.50 ▲(3.38% Upside)

The overall stock score is primarily impacted by weak financial performance and bearish technical indicators. The company's profitability challenges and negative cash flow are significant concerns. Additionally, the stock's valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest a cautious outlook for the stock.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to invest in growth opportunities.

Revenue Model Diversification

Diverse revenue streams from software, cloud services, and consulting enhance resilience against market fluctuations and support steady income.

Industry Positioning

Focus on AI and IoT positions the company well in high-growth tech sectors, supporting long-term demand for its innovative solutions.

Negative Factors

Profitability Challenges

Ongoing profitability issues with negative margins indicate operational inefficiencies, which can hinder sustainable growth and investor confidence.

Negative Operating Cash Flow

Negative operating cash flow raises concerns about liquidity and the company's ability to finance operations without external funding.

Negative Return on Equity

Negative ROE suggests inefficiencies in using equity to generate profits, potentially impacting investor returns and company valuation.

Qingdao AInnovation Technology Group Co. Ltd Class H Business Overview & Revenue Model

Company Description

Qingdao AInnovation Technology Group Co., Ltd., together with its subsidiaries, engages in the research, development, and sale of artificial intelligence-based software and hardware technology solutions in China. The company develops ManuVision Intelligent Machine Vision platform, an edge-based machine vision inspection software system; MatrixVision Intelligent Edge Video platform that systematically combines edge computing and deep learning; and Orion Distributed Machine Learning platform, a machine learning platform. It serves manufacturing, financial, and other industries. The company was formerly known as Shenzhen AInnovation Technology Co., Ltd. and changed its name to Qingdao AInnovation Technology Group Co., Ltd. in December 2020. Qingdao AInnovation Technology Group Co., Ltd. was incorporated in 2018 and is headquartered in Qingdao, China.

How the Company Makes Money

Qingdao AInnovation Technology Group generates revenue primarily through the sale of software solutions and hardware products tailored for specific industries. Its revenue model is built on a combination of direct sales, subscription services, and project-based contracts. Key revenue streams include licensing fees from proprietary software, recurring income from cloud-based services, and consulting fees for implementation and support. The company also benefits from strategic partnerships with leading tech firms and government initiatives aimed at enhancing technological adoption, which contribute to its earnings and market expansion.

Qingdao AInnovation Technology Group Co. Ltd Class H Financial Statement Overview

Summary

The company shows modest revenue growth but faces significant profitability challenges with negative net profit margins. The balance sheet is strong with low leverage, but negative returns on equity and cash flow issues, particularly negative operating cash flow, highlight liquidity concerns.

Income Statement

The company shows a modest revenue growth rate of 4.95% in the TTM, indicating some positive momentum. However, profitability remains a significant concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is stable at around 35%, but the persistent negative net income suggests that the company is struggling to convert revenue into profit.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio of 0.11, indicating conservative leverage and a strong equity position. However, the return on equity is negative, highlighting inefficiencies in generating returns from equity. The equity ratio is relatively healthy, suggesting a stable asset base, but the negative ROE is a concern for potential investors.

Cash Flow

Cash flow analysis shows negative operating cash flow, which is a red flag for liquidity. The free cash flow to net income ratio is positive, suggesting some efficiency in managing cash relative to net losses. However, the negative free cash flow growth rate indicates deteriorating cash generation capabilities, which could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.22B	1.75B	1.56B	861.17M	462.32M
Gross Profit	474.57M	423.07M	588.49M	507.08M	267.24M	134.62M
EBITDA	-317.64M	-360.91M	-478.39M	-281.06M	-587.78M	-271.00M
Net Income	-454.48M	-593.81M	-582.34M	-363.04M	-635.12M	-360.63M
Balance Sheet
Total Assets	2.61B	2.62B	3.29B	3.27B	2.26B	1.40B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.22B	1.45B	1.80B	1.59B	1.05B
Total Debt	165.39M	181.06M	156.39M	147.70M	87.57M	15.31M
Total Liabilities	977.31M	910.90M	1.07B	909.47M	469.60M	1.91B
Stockholders Equity	1.46B	1.54B	2.03B	2.27B	1.79B	-517.91M
Cash Flow
Free Cash Flow	-24.32M	-39.80M	-186.59M	-325.90M	-288.77M	-192.71M
Operating Cash Flow	-18.31M	-35.79M	-180.32M	-304.30M	-236.77M	-174.21M
Investing Cash Flow	-68.61M	-29.71M	-188.70M	-292.81M	-46.99M	-19.23M
Financing Cash Flow	-248.97M	-74.02M	75.83M	685.69M	800.16M	630.31M

Qingdao AInnovation Technology Group Co. Ltd Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2121, the sentiment is Negative. The current price of 5.32 is below the 20-day moving average (MA) of 5.64, below the 50-day MA of 6.10, and below the 200-day MA of 5.86, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 36.97 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2121.

Qingdao AInnovation Technology Group Co. Ltd Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6608	73 Outperform	HK$8.39B	14.61	7.02%	―	16.43%	17.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9923	58 Neutral	HK$3.73B	33.78	3.35%	―	-9.32%	477.27%
2598	58 Neutral	HK$7.27B	3.83	94.40%	―	―	―
6682	43 Neutral	HK$22.54B	-100.33	-3.20%	―	―	―
9959	41 Neutral	HK$4.98B	-4.44	-12.22%	―	11.43%	-94.89%
2121	40 Underperform	HK$3.08B	-5.88	-27.20%	―	-3.78%	20.83%

Qingdao AInnovation Technology Group Co. Ltd Class H Corporate Events

AInnovation Technology Group Updates Acquisition Terms and Annual Report

AInnovation Technology Group Co., Ltd has entered into a supplemental agreement to amend the terms of its acquisition of a 51% equity interest in AInnovation EHigher (Shanghai) Intelligence Technology Co., Ltd. The changes include adjusting the collection date for performance commitments and payment arrangements for the year 2024. This strategic move is aimed at fostering future business cooperation and is deemed fair and reasonable by the company’s board. Additionally, the company has disclosed supplemental information related to its 2024 annual report, including another share transfer agreement to acquire a 51% equity interest in Qingdao Aolipu Qizhi Intelligent Industrial Technology Co., Ltd.

AInnovation Technology Group Announces Share Repurchase to Boost Shareholder Value

Qingdao AInnovation Technology Group Co. Ltd has announced the repurchase of 570,100 shares from the open market in October 2025, amounting to HK$4,305,500. This move, under the Share Repurchase Mandate, reflects the company’s confidence in its business outlook and aims to create value for shareholders while maintaining a strong financial position.

Qingdao AInnovation Technology Group Announces Share Repurchase Plan

Qingdao AInnovation Technology Group Co. Ltd has announced a share repurchase plan, buying back 590,700 shares in September 2025 for HK$4,810,602. This move, under the Share Repurchase Mandate, is intended to demonstrate confidence in the company’s business outlook and create shareholder value, while maintaining a healthy financial position.