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

• Market Cap: HK$3.25B
• Dividend Yield: N/A
• Average Volume (3M): 3.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$5.50 ▼(-1.26% Downside)

The score is primarily held back by weak financial performance—ongoing losses and negative operating cash flow outweigh modest revenue growth and a low-leverage balance sheet. Technicals are moderately positive with an uptrend and positive MACD, but momentum appears near overbought. Valuation is also pressured due to negative earnings and no dividend support.

Positive Factors

Conservative leverage

A low debt-to-equity ratio provides durable financial flexibility, reducing insolvency risk and enabling the company to fund investment or weather downturns without immediate refinancing. This structural strength supports long-term operational resilience and strategic optionality.

Stable gross margins

A consistent ~35% gross margin indicates the core software/infrastructure business retains pricing power or cost control at the gross level. If SG&A and R&D are managed, this structural margin base can underpin future profitability once operating losses are addressed.

Positive revenue trend

Sustained top-line growth, albeit modest, signals ongoing market demand and revenue momentum in the core business. Over a 2-6 month horizon this supports scale advantages and the potential to leverage fixed costs toward improved operating leverage if cost discipline follows.

Negative Factors

Negative operating cash flow

Persistent negative operating cash flow is a structural weakness that erodes liquidity and forces reliance on external financing or equity raises. Over months this can constrain R&D, sales investment, or growth initiatives, and increases financing costs and dilution risk.

Ongoing unprofitability

Negative net and EBIT margins indicate the company cannot yet convert revenue into sustainable profits. Without a credible path to operating profitability, this undermines return generation, hinders reinvestment capacity, and creates execution risk over the medium term.

Negative return on equity

A negative ROE shows the firm is not generating returns for shareholders despite a healthy equity base. This structural inefficiency suggests capital is underutilized or misallocated, making it harder to attract long-term investors until profitability and ROE normalize.

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

Revenue growth is modest (TTM +4.95%), but profitability is the key weakness with negative net profit and EBIT margins. Balance sheet leverage is conservative (debt-to-equity 0.11) yet ROE is negative, and liquidity is pressured by negative operating cash flow and weakening free cash flow trends.

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: 5.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 5.57 is below the 20-day moving average (MA) of 6.38, below the 50-day MA of 5.94, and below the 200-day MA of 6.14, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 34.86 is Neutral, neither overbought nor oversold. The STOCH value of 4.61 is Positive, 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$8.47B	15.12	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$3.69B	31.91	3.35%	―	-9.32%	477.27%
2598	58 Neutral	HK$7.61B	3.87	94.40%	―	―	―
2121	49 Neutral	HK$3.25B	-6.07	-27.20%	―	-3.78%	20.83%
6682	49 Neutral	HK$26.03B	-111.16	-3.20%	―	―	―
9959	41 Neutral	HK$4.76B	-4.09	-12.22%	―	11.43%	-94.89%

Qingdao AInnovation Technology Group Co. Ltd Class H Corporate Events

AInnovation Signs Strategic Cooperation Pact with SJTU Hainan Institute on Intelligent Marine Technology

AInnovation Technology Group Co., Ltd has entered into a strategic cooperation agreement with the Shanghai Jiao Tong University Hainan Research Institute to deepen collaboration in intelligent marine technology and equipment, combining the university’s deep-sea, marine equipment and testing expertise with AInnovation’s AI-empowered robotics capabilities. The partners will jointly develop technologies such as underwater intelligent operation equipment, multi-axis robotic arms, underwater target recognition and tracking, integrated air-sea-subsea unmanned systems and marine environmental perception, and plan to establish a joint laboratory, pursue talent cultivation, commercialisation of research outcomes and resource sharing, strengthening industry-academia-research integration and potentially accelerating the industrialisation of advanced marine and AI technologies for stakeholders in this sector.

The most recent analyst rating on (HK:2121) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Qingdao AInnovation Technology Group Co. Ltd Class H stock, see the HK:2121 Stock Forecast page.

AInnovation Technology Steps Up Share Buy-Backs to Signal Confidence

AInnovation Technology Group has updated investors on its share repurchase activity, confirming that it bought back 1,084,200 shares on the open market in December 2025 for a total consideration of HK$5.97 million under an existing RMB100 million repurchase mandate approved in May 2025. The board says the buy-backs, to be carried out in compliance with Hong Kong listing rules, takeover and buy-back codes, and PRC company law, are intended to signal confidence in the company’s business outlook and enhance shareholder value, and that current financial resources are sufficient to support the programme while maintaining a healthy balance sheet, though future repurchases remain subject to market conditions and board discretion.

The most recent analyst rating on (HK:2121) stock is a Sell with a HK$5.50 price target. To see the full list of analyst forecasts on Qingdao AInnovation Technology Group Co. Ltd Class H stock, see the HK:2121 Stock Forecast page.

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.

The most recent analyst rating on (HK:2121) stock is a Sell with a HK$5.50 price target. To see the full list of analyst forecasts on Qingdao AInnovation Technology Group Co. Ltd Class H stock, see the HK:2121 Stock Forecast page.

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.

The most recent analyst rating on (HK:2121) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Qingdao AInnovation Technology Group Co. Ltd Class H stock, see the HK:2121 Stock Forecast page.