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

• Market Cap: HK$3.97B
• Dividend Yield: N/A
• Average Volume (3M): 3.02M
• 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: 2,500,127
• 30 Day Avg. Volume: 3,016,498
• 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: HK$8.50
• Price Target Upside: 26.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: HK$6.50 ▼(-3.27% Downside)

The overall stock score is primarily influenced by the company's financial performance, which is hindered by profitability and cash flow challenges. The technical analysis further indicates a bearish trend, with the stock trading below key moving averages and technical indicators suggesting oversold conditions. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield, making the stock less attractive to investors.

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, yet negative returns on equity and cash flow issues 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	-597.75M	-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: 6.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 6.72 is below the 20-day moving average (MA) of 7.73, below the 50-day MA of 7.45, and above the 200-day MA of 5.80, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 6.15 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	62 Neutral	€7.59B	12.88	7.02%	―	16.43%	17.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2598	57 Neutral	HK$9.55B	4.69	94.40%	―	―	―
9923	54 Neutral	HK$4.46B	37.84	3.35%	―	-9.32%	477.27%
9959	53 Neutral	HK$6.67B	―	-12.22%	―	11.43%	-94.89%
2121	41 Neutral	HK$3.97B	―	-27.20%	―	-3.78%	20.83%
6682	41 Neutral	HK$28.78B	―	-3.20%	―	―	―

Qingdao AInnovation Technology Group Co. Ltd Class H Corporate Events

AInnovation Forms Joint Venture with Hunlicar for AI and Blockchain Advancements

AInnovation Technology Group Co., Ltd has formed a joint venture with Hunlicar Group Limited, named HUNLICAR CHAINNOVATION LIMITED, to enhance its capabilities in AI and blockchain applications for the financial services sector. This collaboration aims to leverage Hunlicar’s industrial experience and AInnovation’s AI expertise to develop smart blockchain applications, promote real-world asset tokenization, and support the transition of financial institutions to Web 3.0, thereby enhancing AInnovation’s competitiveness in ‘AI + Financial Services’.

AInnovation Technology Group Schedules Board Meeting for Interim Results

AInnovation Technology Group Co., Ltd has announced a board meeting scheduled for August 22, 2025, to discuss and approve the unaudited interim results for the first half of 2025. The meeting will also consider the recommendation of an interim dividend and address other business matters, potentially impacting the company’s financial strategies and shareholder returns.

AInnovation Technology Group Announces Share Repurchase to Boost Shareholder Value

AInnovation Technology Group Co., Ltd has announced a share repurchase program, buying back 1,488,000 shares in July 2025 for HK$8,947,060 under a mandate allowing up to RMB100 million in repurchases. This move is intended to demonstrate confidence in the company’s business outlook and create value for shareholders, with the board ensuring that financial resources remain sufficient to support this initiative while maintaining a healthy financial position.

AInnovation Technology Group Announces Share Repurchase

AInnovation Technology Group Co., Ltd has announced the repurchase of 2,802,200 shares from the open market in June 2025, amounting to HK$16,662,126. This move, under the Share Repurchase Mandate, reflects the company’s confidence in its business outlook and is intended to create value for shareholders while maintaining a healthy financial position. The repurchase is subject to market conditions and the discretion of the Board, with no guarantees on the specifics of future repurchases.

Qingdao AInnovation Partners with KEENON Robotics for Industrial Robotics Advancement

Qingdao AInnovation Technology Group Co. Ltd has entered into a strategic cooperation agreement with KEENON Robotics to jointly develop and promote embodied intelligent robotic solutions for industrial applications. This collaboration aims to accelerate the transition from automation to intelligence in manufacturing by establishing a Joint R&D Laboratory and leveraging KEENON Robotics’ capabilities in R&D, intelligent manufacturing, and global deployment. The partnership is expected to drive innovative applications and commercial implementation of robotic solutions in industrial settings.

AInnovation Partners with KUKA Robotics to Innovate Intelligent Manufacturing

Qingdao AInnovation Technology Group Co. Ltd has entered into a cooperation agreement with KUKA Robotics, a leading industrial robot manufacturer, to integrate AI technologies with industrial robots. This collaboration aims to develop a new generation of intelligent industrial robot systems and expand market opportunities, enhancing the application of AI-driven manufacturing solutions.