Flowing Cloud Technology Ltd. (6610) AI Stock Analysis

• Market Cap: HK$212.69M
• Dividend Yield: N/A
• Average Volume (3M): 10.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: -15.20%
• EPS Growth: -206.59%
• Country: HK
• Employees: 124
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -1.44
• Shares Outstanding: 130,087,860
• 10 Day Avg. Volume: 10,713,200
• 30 Day Avg. Volume: 10,983,445
• PEG Ratio: 2.17
• Price to Book (P/B): 7.99
• Price to Sales (P/S): 11.08
• P/FCF Ratio: -70.48
• 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: 40 Underperform
• Price Target: HK$1.50 ▼(-6.25% Downside)

Flowing Cloud Technology Ltd. is facing significant financial and operational challenges. The most impactful factors are the weak financial performance and bearish technical indicators, both suggesting caution. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score, indicating potential risks for investors.

Positive Factors

Business Model Strength

A diversified revenue model with subscriptions and licensing ensures steady income and resilience against market fluctuations.

Partnerships

Strategic partnerships expand market reach and service capabilities, providing a competitive edge and supporting long-term growth.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility to invest in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining market share and could impact future profitability and growth.

Cash Flow Issues

Lack of cash flow generation raises concerns about the company's ability to fund operations and invest in future growth.

Profitability Challenges

Sustained profitability issues can hinder reinvestment in business and affect long-term sustainability and shareholder value.

Flowing Cloud Technology Ltd. Business Overview & Revenue Model

Company Description

Flowing Cloud Technology Ltd. is a leading provider of cloud-based solutions specializing in data management, analytics, and cybersecurity services. Operating primarily in the technology sector, the company aims to enhance operational efficiency and security for businesses across various industries. Core products include cloud storage solutions, data analytics platforms, and cybersecurity tools designed to safeguard sensitive information and streamline business operations.

How the Company Makes Money

Flowing Cloud Technology Ltd. generates revenue through a multi-faceted business model primarily focused on subscription-based services, licensing fees, and professional consulting. The company offers tiered subscription plans for its cloud storage and analytics services, ensuring a steady stream of recurring revenue. Additionally, Flowing Cloud earns income from licensing its proprietary technology to other firms, which facilitates their adoption of advanced data management solutions. Professional services, including implementation, customization, and ongoing support, also contribute to revenue, particularly through long-term contracts with enterprise clients. Key partnerships with major cloud infrastructure providers enhance its service offerings and market reach, further driving sales and profitability.

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. While the balance sheet exhibits strength with low leverage and high equity, the income and cash flow statements highlight significant operational and cash flow challenges that could affect future performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	928.65M	995.35M	1.24B	1.07B	595.29M	338.60M
Gross Profit	155.45M	200.04M	420.72M	374.00M	175.52M	104.70M
EBITDA	-224.93M	-18.84M	292.76M	291.64M	130.67M	77.28M
Net Income	-230.68M	-43.70M	263.94M	236.75M	70.20M	58.88M
Balance Sheet
Total Assets	1.76B	1.77B	1.72B	1.53B	583.51M	390.60M
Cash, Cash Equivalents and Short-Term Investments	21.00M	167.12M	335.90M	407.96M	214.28M	104.02M
Total Debt	96.64M	89.69M	98.39M	85.89M	28.06M	39.52M
Total Liabilities	438.62M	387.51M	269.04M	302.05M	136.94M	211.18M
Stockholders Equity	1.32B	1.38B	1.45B	1.22B	443.68M	178.05M
Cash Flow
Free Cash Flow	14.07M	-156.48M	-112.04M	-210.56M	6.76M	5.52M
Operating Cash Flow	12.90M	-117.60M	-52.61M	-155.50M	24.48M	24.95M
Investing Cash Flow	-45.79M	-48.20M	-18.80M	-224.01M	-16.90M	1.45M
Financing Cash Flow	0.00	-4.89M	458.00K	574.26M	102.68M	65.91M

Flowing Cloud Technology Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.6 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.61, and below the 200-day MA of 4.41, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 28.06 is Positive, neither overbought nor oversold. The STOCH value of 14.82 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	72 Outperform	HK$826.42M	9.95	23.35%	9.81%	-6.93%	-18.99%
1808	62 Neutral	HK$732.22M	6.84	27.53%	―	421.56%	328.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8635	55 Neutral	HK$364.80M	-17.12	-19.25%	8.49%	129.07%	-5.71%
8148	48 Neutral	HK$1.41B	-248.39	-31.21%	―	1.55%	39.81%
9600	47 Neutral	HK$189.71M	-1.72	-14.03%	―	15.44%	10.57%
6610	40 Underperform	HK$212.69M	-0.61	-16.28%	―	-15.20%	-206.59%

Flowing Cloud Technology Ltd. Corporate Events

Flowing Cloud Technology Ltd. Announces Share Consolidation and Share Option Adjustments

Flowing Cloud Technology Ltd. has announced that its share consolidation will become effective on December 5, 2025. This consolidation involves the conversion of existing shares into consolidated shares, with new share certificates issued to shareholders. Additionally, adjustments will be made to outstanding share options, affecting the exercise price and the number of shares issuable under the company’s Post-IPO Share Option Scheme. These changes have been certified by Silverbricks Securities Company Limited as compliant with relevant listing rules and guidance.

Flowing Cloud Technology Ltd. Confirms Director Attendance at EGM

Flowing Cloud Technology Ltd. announced that all directors attended the Extraordinary General Meeting (EGM) held on December 3, 2025, either in person or via electronic means. This supplemental information aims to provide transparency to shareholders, while all other details from the initial poll results announcement remain unchanged.

Flowing Cloud Technology Ltd. Approves Share Consolidation at EGM

Flowing Cloud Technology Ltd. held an Extraordinary General Meeting (EGM) on December 3, 2025, where a resolution regarding Share Consolidation was passed by a significant majority of shareholders. The resolution received 96.67% of votes in favor, indicating strong shareholder support. The company’s board announced that the resolution was passed as an ordinary resolution, with no shareholders required to abstain from voting under the Listing Rules.

Flowing Cloud Technology Ltd. Announces Extraordinary General Meeting for Share Consolidation

Flowing Cloud Technology Ltd. has announced an extraordinary general meeting scheduled for December 3, 2025, to discuss a proposed share consolidation. The company plans to consolidate every twenty issued and unissued ordinary shares into one consolidated share, subject to approval by the Hong Kong Stock Exchange and compliance with Cayman Islands laws. This move aims to streamline the company’s share structure, potentially impacting its market positioning and shareholder value.

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.

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.