Flowing Cloud Technology Ltd. (6610) AI Stock Analysis

• Market Cap: HK$407.87M
• Dividend Yield: N/A
• Average Volume (3M): 10.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: -15.20%
• EPS Growth: -206.58%
• Country: HK
• Employees: 124
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.07
• Shares Outstanding: 2,601,757,000
• 10 Day Avg. Volume: 10,713,200
• 30 Day Avg. Volume: 10,983,445
• PEG Ratio: 0.11
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -3.52
• 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 Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

Flowing Cloud Technology Ltd. faces significant financial and operational challenges, as evidenced by declining revenues, negative earnings, and zero cash flow generation. The technical analysis indicates bearish momentum with oversold conditions, while the valuation is unattractive due to negative earnings and lack of dividends. These factors collectively result in a low overall stock score.

Flowing Cloud Technology Ltd. Business Overview & Revenue Model

Company Description

Flowing Cloud Technology Ltd provides smart marketing technology solutions in China. It offers standardized SaaS marketing solutions based on AR/VR engine, AI behavior algorithm, cloud computing, and other technical capabilities for small and medium-sized enterprises in industries, such as e-commerce, education, cultural tourism, etc. The company was founded in 2008 and is based in Beijing, China.

How the Company Makes Money

Flowing Cloud Technology Ltd. generates revenue through the sale and licensing of its AR and VR software solutions. A significant portion of its income comes from partnerships with companies in various industries, such as gaming developers and educational institutions, who integrate Flowing Cloud's technology into their products and services. Additionally, the company may earn from consulting services, providing customized AR/VR experiences, and offering ongoing support and maintenance for its platforms. Collaborations with hardware manufacturers to create proprietary AR/VR devices could also contribute to its revenue streams.

Flowing Cloud Technology Ltd. Financial Statement Overview

Summary

Flowing Cloud Technology Ltd. faces financial pressures with declining revenues and profitability, alongside zero cash flow generation in the latest period. Despite a strong balance sheet with low leverage and high equity, the income and cash flow statements highlight significant operational and cash flow challenges.

Income Statement

The income statement shows a significant decline in key profitability metrics. Gross profit margin decreased as revenue dropped from 2023 to 2024, and the company reported a negative EBIT and net income in 2024, indicating operational challenges. Revenue also declined from 2023 to 2024, reversing a previous growth trend.

Balance Sheet

The balance sheet remains relatively strong with high stockholders' equity and a healthy equity ratio. The debt-to-equity ratio is low, indicating low leverage. However, a decrease in total revenue and profitability may impact future financial stability.

Cash Flow

Cash flow analysis shows significant concerns with zero reported operating and free cash flow in 2024. The company had negative operating and free cash flows in previous years, raising sustainability concerns. Lack of sufficient cash flow generation poses risks to ongoing operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	995.35M	1.24B	1.07B	595.29M	338.60M
Gross Profit	200.04M	420.72M	374.00M	175.52M	104.70M
EBITDA	-18.84M	292.76M	291.64M	130.67M	77.28M
Net Income	-43.70M	263.94M	236.75M	70.20M	58.88M
Balance Sheet
Total Assets	1.77B	1.72B	1.53B	583.51M	390.60M
Cash, Cash Equivalents and Short-Term Investments	167.12M	335.90M	407.96M	214.28M	104.02M
Total Debt	89.69M	98.39M	85.89M	28.06M	39.52M
Total Liabilities	387.51M	269.04M	302.05M	136.94M	211.18M
Stockholders Equity	1.38B	1.45B	1.22B	443.68M	178.05M
Cash Flow
Free Cash Flow	-156.48M	-112.04M	-210.56M	6.76M	5.52M
Operating Cash Flow	-117.60M	-52.61M	-155.50M	24.48M	24.95M
Investing Cash Flow	-48.20M	-18.80M	-224.01M	-16.90M	1.45M
Financing Cash Flow	-4.89M	458.00K	574.26M	102.68M	65.91M

Flowing Cloud Technology Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 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:6610, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.21, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 31.30 is Neutral, neither overbought nor oversold. The STOCH value of 12.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6610.

Flowing Cloud Technology Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0536	―	HK$810.53M	9.76	23.35%	9.90%	-6.93%	-18.99%
1808	―	HK$734.66M	6.86	27.53%	―	421.56%	328.43%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8635	―	HK$753.60M	-32.24	-23.23%	4.11%	-21.29%	15.16%
9600	―	HK$218.02M	―	-14.03%	―	15.44%	10.57%
6610	―	HK$407.87M	-1.17	-16.28%	―	-15.20%	-206.58%
8148	―	HK$403.17M	955.56	-31.21%	―	1.55%	39.81%

Flowing Cloud Technology Ltd. Corporate Events

Flowing Cloud Technology Ltd. Proposes Share Consolidation

Flowing Cloud Technology Ltd. has announced a proposed share consolidation plan, where every twenty issued and unissued shares of par value US$0.00001 each will be consolidated into one share of US$0.00020. This move is subject to shareholder approval at an Extraordinary General Meeting (EGM) and the approval of the Stock Exchange’s Listing Committee. The consolidation will not change the relative rights of shareholders, but it will adjust the number of shares and share options available. Shareholders and investors are advised to exercise caution as the consolidation’s execution depends on meeting specific conditions.

The most recent analyst rating on (HK:6610) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Flowing Cloud Technology Ltd. stock, see the HK:6610 Stock Forecast page.

Flowing Cloud Technology Ltd. Announces New Share Placement to Raise HK$74.53 Million

Flowing Cloud Technology Ltd. has announced a placement of new shares under a general mandate, involving up to 433,429,200 shares at a price of HK$0.174 per share. The placement aims to raise approximately HK$74.53 million in net proceeds, which will be allocated towards acquiring advertising traffic, enhancing research and development capabilities, and general working capital. This move could strengthen the company’s financial position and support its growth initiatives.

The most recent analyst rating on (HK:6610) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Flowing Cloud Technology Ltd. stock, see the HK:6610 Stock Forecast page.

Flowing Cloud Technology Ltd. Faces Financial Challenges Amidst Technological Advancements

Flowing Cloud Technology Ltd. reported a significant decline in financial performance for the first half of 2025, with a 14.9% drop in revenue and a substantial loss compared to the previous year. Despite these financial challenges, the company achieved technological advancements and expanded its market presence. It continues to invest in R&D, enhancing its AR&VR engine and AI algorithms, aiming to strengthen its digital infrastructure and offer innovative solutions across multiple industries.

The most recent analyst rating on (HK:6610) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Flowing Cloud Technology Ltd. stock, see the HK:6610 Stock Forecast page.

Flowing Cloud Technology Ltd. Schedules Board Meeting for Interim Results

Flowing Cloud Technology Ltd. has announced that its board of directors will meet on August 29, 2025, to review and approve the interim financial results for the first half of 2025. The meeting will also consider the possibility of declaring an interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder value, potentially impacting investor confidence and market perception.

Flowing Cloud Technology Ltd Issues Profit Warning for H1 2025

Flowing Cloud Technology Ltd has issued a profit warning, anticipating a significant loss for the first half of 2025, ranging from RMB100 million to RMB130 million, compared to a profit of RMB63.5 million in the same period in 2024. The decline is attributed to reduced revenue from its AR/VR marketing services, increased impairment losses for trade receivables, and higher selling and distribution expenses due to intensified marketing efforts.