Flowing Cloud Technology Ltd. (6610) AI Stock Analysis

• Market Cap: HK$573.59M
• Dividend Yield: N/A
• Average Volume (3M): 8.97M
• Price to Earnings (P/E): 2.1
• Beta (1Y): 1.95
• Revenue Growth: -21.51%
• EPS Growth: -116.36%
• Country: HK
• Employees: 124
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): -0.06
• Shares Outstanding: 2,168,328,000
• 10 Day Avg. Volume: 10,247,100
• 30 Day Avg. Volume: 8,966,266
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 41 reflects major financial pressures and weak technical indicators. The company's negative financial performance, particularly in cash flow and profitability, is the most significant factor. Additionally, poor valuation metrics further dampen the stock's outlook.

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. is experiencing financial difficulties as demonstrated by declining revenues and profitability, and zero cash flow generation in the latest period. The income statement is weak with negative EBIT and net income, and cash flow analysis is concerning with no reported operating and free cash flow in 2024. Despite a strong balance sheet with low leverage, the overall financial performance is compromised by 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	298.80M	102.79M	80.10M
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	404.50M	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: 0.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.26 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.26, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 24.96 is Neutral, 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	72 Outperform	HK$770.79M	9.41	21.41%	16.91%	-7.12%	-18.63%
1808	66 Neutral	HK$881.60M	10.32	25.16%	―	561.25%	639.47%
Sector *	61 Neutral	$34.83B	4.75	-10.43%	2.08%	6.55%	-9.99%
8635	55 Neutral	HK$288.00M	―	-23.23%	10.40%	-54.03%	-22.81%
9600	50 Neutral	HK$278.43M	―	-12.13%	―	11.48%	-19.34%
6610	41 Neutral	HK$573.59M	2.14	-3.10%	―	-21.51%	-116.36%
8148	39 Underperform	HK$278.71M	811.11	-32.60%	―	134.00%	―

Flowing Cloud Technology Ltd. Corporate Events

Flowing Cloud Technology Ltd. Forms Investment Committee to Boost Investment Returns

Flowing Cloud Technology Ltd. has established an Investment Committee to enhance the company’s investment returns by overseeing both internally managed funds and external portfolios. The committee will provide market expertise, review investment performance, and recommend changes to investment policies, thereby potentially impacting the company’s financial strategy and stakeholder interests.

Flowing Cloud Technology Ltd. Announces Board Composition

Flowing Cloud Technology Ltd. has announced the composition of its board of directors and the roles within its four board committees. This announcement outlines the leadership structure, which could impact the company’s governance and strategic decision-making, potentially influencing its market positioning and stakeholder relations.

Flowing Cloud Technology Ltd. Forms Nomination Committee to Strengthen Governance

Flowing Cloud Technology Ltd. has established a Nomination Committee as part of its governance structure, which will be composed mainly of independent non-executive directors. This committee is tasked with overseeing board nominations and ensuring diversity, including gender representation, within its members. The formation of this committee reflects the company’s commitment to robust corporate governance practices and may enhance its industry standing by promoting transparency and accountability.

Flowing Cloud Technology Announces Board Changes

Flowing Cloud Technology Ltd. announced a change in its board composition with the resignation of Mr. Tan Deqing as an independent non-executive director, who also held key committee positions. Mr. Li Shaojie has been appointed to replace Mr. Tan, bringing over 25 years of experience in media and animation to the board, which may impact the company’s strategic direction and stakeholder interests.

Flowing Cloud Technology Ltd. Announces Board Composition and Roles

Flowing Cloud Technology Ltd. has announced the composition of its board of directors and the roles and functions of each member. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees, indicating a structured governance approach.

Flowing Cloud Technology Ltd. Unanimously Passes AGM Resolutions

Flowing Cloud Technology Ltd. held its annual general meeting on May 28, 2025, where all proposed resolutions were unanimously passed. These resolutions included the adoption of the audited financial statements, re-election of directors, authorization of director remuneration, re-appointment of the auditor, and granting of mandates to repurchase and issue shares. The unanimous approval of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives effectively.

Flowing Cloud Technology Ltd. Completes Successful Share Placement

Flowing Cloud Technology Ltd. has successfully completed the placement of 361 million new shares under a general mandate, raising approximately HK$71.62 million in net proceeds. The funds will be allocated to enhance R&D capabilities, improve services and products, and strengthen sales and marketing efforts, with a portion reserved for general working capital. This strategic move impacts the company’s shareholding structure, increasing the public shareholding percentage and supporting its growth initiatives.