Pu'er Lancang Ancient Tea Co., Ltd. (6911) AI Stock Analysis

• Market Cap: HK$141.52M
• Dividend Yield: 10.64%
• Average Volume (3M): 11.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -41.81%
• EPS Growth: -645.06%
• Country: HK
• Employees: 831
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): N/A
• Shares Outstanding: 55,500,000
• 10 Day Avg. Volume: 7,260
• 30 Day Avg. Volume: 11,650
• PEG Ratio: <0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -2.75
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$3.00 ▲(17.65% Upside)

The overall stock score is primarily impacted by the company's challenging financial performance, marked by declining revenues and increased leverage. Technical analysis suggests a neutral trend, but potential overbought conditions could pose risks. The high dividend yield offers some appeal, but the negative P/E ratio reflects valuation concerns.

Positive Factors

Market Position

Being located in a prime tea-growing region offers a competitive advantage in quality and authenticity, supporting long-term brand strength.

Product Diversification

Product diversification through traditional and modern methods can enhance market appeal and resilience against market fluctuations.

Global Demand

Rising global demand for premium and health-focused products supports long-term revenue growth potential for the company's offerings.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in sales performance, potentially impacting long-term financial health and market competitiveness.

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flow highlights liquidity issues, which can hinder the company's ability to sustain operations and invest in strategic initiatives.

Pu'er Lancang Ancient Tea Co., Ltd. Business Overview & Revenue Model

Company Description

Pu'er Lancang Ancient Tea Co., Ltd. (6911) is a leading producer and distributor of high-quality Pu'er tea, specializing in ancient tea cultivation and processing. The company operates primarily in the agricultural sector, focusing on the production of traditional Chinese tea products sourced from the Lancang region, which is renowned for its unique tea varieties and rich flavor profiles. Pu'er Lancang Ancient Tea Co., Ltd. offers a range of products including raw and ripe Pu'er tea, tea cakes, and loose-leaf teas, catering to both domestic and international markets.

How the Company Makes Money

The company generates revenue through the sale of its diverse range of Pu'er tea products, which are marketed to tea enthusiasts, retailers, and wholesalers. Key revenue streams include direct sales of packaged tea products, online sales through e-commerce platforms, and export opportunities to international markets. Additionally, the company may benefit from partnerships with tea distributors and retailers, which help expand its market reach. Seasonal promotions and limited-edition products also contribute to increased sales during peak tea consumption periods. By focusing on high-quality sourcing and traditional processing methods, Pu'er Lancang Ancient Tea Co., Ltd. positions itself as a premium brand in the competitive tea market, driving customer loyalty and repeat purchases.

Pu'er Lancang Ancient Tea Co., Ltd. Financial Statement Overview

Summary

Pu'er Lancang Ancient Tea Co., Ltd. faced a difficult financial year in 2024, with declining revenues and increased operational losses. High leverage and reduced equity ratios present potential risks. Cash flow issues highlight liquidity challenges, necessitating strategic adjustments for financial stabilization.

Income Statement

The company experienced a sharp decline in revenue from 2023 to 2024, with a revenue growth rate of -31.5%. The gross profit margin also decreased from 67% in 2023 to 52% in 2024. The net profit margin turned negative in 2024, signifying a challenging year with net losses. EBIT and EBITDA margins also turned negative, indicating operational inefficiencies.

Balance Sheet

The debt-to-equity ratio increased from 0.38 in 2023 to 0.65 in 2024, suggesting increased leverage. Return on Equity (ROE) dropped significantly, reflecting poor profitability. The equity ratio decreased, though the company still maintains a relatively stable equity position compared to its total assets.

Cash Flow

Free cash flow turned negative, and operating cash flow also decreased, indicating liquidity challenges. The free cash flow to net income ratio is negative due to losses in net income. The company faces cash flow management issues, which require attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	285.71M	361.33M	527.35M	462.87M	558.68M	405.46M
Gross Profit	125.02M	188.01M	353.12M	304.38M	407.65M	299.86M
EBITDA	-90.80M	-219.39M	168.42M	114.01M	191.98M	169.81M
Net Income	-341.58M	-307.55M	80.08M	72.20M	131.01M	122.88M
Balance Sheet
Total Assets	1.25B	1.34B	1.63B	1.58B	1.46B	1.07B
Cash, Cash Equivalents and Short-Term Investments	66.98M	109.80M	262.31M	101.08M	141.55M	206.20M
Total Debt	462.85M	436.34M	385.26M	380.41M	283.44M	177.21M
Total Liabilities	607.97M	668.95M	617.67M	686.70M	534.71M	375.29M
Stockholders Equity	642.69M	671.87M	1.01B	794.24M	915.07M	586.19M
Cash Flow
Free Cash Flow	-127.50M	-163.82M	6.12M	-27.14M	-60.90M	81.68M
Operating Cash Flow	-94.75M	-107.54M	21.72M	46.09M	-10.83M	105.55M
Investing Cash Flow	-45.67M	-98.64M	-14.24M	-76.82M	-56.19M	-20.95M
Financing Cash Flow	39.54M	9.24M	164.81M	-14.34M	32.81M	-59.38M

Pu'er Lancang Ancient Tea Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6911, the sentiment is Negative. The current price of 2.55 is below the 20-day moving average (MA) of 2.61, below the 50-day MA of 2.74, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 19.34 is Positive, neither overbought nor oversold. The STOCH value of 71.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6911.

Pu'er Lancang Ancient Tea Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0197	51 Neutral	HK$54.39M	-0.23	-30.07%	―	-3.16%	33.72%
0682	48 Neutral	HK$54.38M	-3.18	-7.84%	―	-15.08%	12.98%
6911	45 Neutral	HK$141.52M	-0.87	-42.06%	10.64%	-41.81%	-645.06%
0073	45 Neutral	HK$25.78M	-0.98	-19.29%	―	-55.40%	14.13%

Pu'er Lancang Ancient Tea Co., Ltd. Corporate Events

Pu’er Lancang Ancient Tea Co., Ltd. Announces Key Executive Changes

Pu’er Lancang Ancient Tea Co., Ltd. has announced significant changes in its executive team, with the resignation of Ms. He Yunhong and Ms. Wong Yuen Ki from their roles as joint company secretaries and authorized representatives, effective November 13, 2025. Ms. Ko Pui Yu has been appointed as the new company secretary, bringing over 10 years of experience in company secretarial and compliance services. Additionally, Mr. Wan Feng has been appointed as the board secretary, replacing Mr. Zhou Xinzhong. These changes are expected to strengthen the company’s governance and compliance framework.

Pu’er Lancang Ancient Tea Co. Faces Arbitration Ruling Over Loan Dispute

Pu’er Lancang Ancient Tea Co., Ltd. announced that its subsidiary, Guangzhou Kangrui Lancang Ancient Tea Co., Ltd., received an arbitration award from the Shenzhen International Court of Arbitration related to a loan dispute. The arbitration decision requires Guangzhou Kangrui to repay the loan principal, overdue interest, and other fees, with former director Ms. Wang Juan bearing joint liability. The company uncovered that the loan was misappropriated for personal use by Ms. Wang and Mr. Zhang Muheng, who have agreed to compensate the company for the resulting economic losses.

Pu’er Lancang Ancient Tea Co., Ltd. Announces Executive Resignation

Pu’er Lancang Ancient Tea Co., Ltd. announced the resignation of Mr. Zhang Muheng from his roles as executive director and vice president due to personal health reasons. Despite his resignation, Mr. Zhang will continue to serve in key roles at a wholly-owned subsidiary, ensuring continuity in leadership. The company expressed gratitude for his contributions, and there are no disagreements or issues to report regarding his departure.

Pu’er Lancang Ancient Tea Co., Ltd. Completes H Share Issuance, Reshaping Shareholding Structure

Pu’er Lancang Ancient Tea Co., Ltd. has successfully completed the issuance of 24 million H Shares under a general mandate, raising approximately HKD58.04 million. This issuance significantly alters the company’s shareholding structure, increasing the proportion of H Shares from 25% to 37% and reducing the domestic shareholding percentage, thereby impacting the company’s market positioning and shareholder composition.

Pu’er Lancang Ancient Tea Co., Ltd. Secures HKD59.04 Million in Subscription Monies

Pu’er Lancang Ancient Tea Co., Ltd. announced the successful receipt of subscription monies totaling HKD59.04 million from four subscribers under Subscription Agreements at a price of HKD2.46 per share. The company plans to issue and allot a total of 24 million Subscription Shares, with further announcements to be made regarding the completion of the issuance of H Shares under the General Mandate.

Pu’er Lancang Ancient Tea Co., Ltd. Announces Board Composition

Pu’er Lancang Ancient Tea Co., Ltd. has announced the composition of its board of directors and their roles within various board committees. This announcement provides clarity on the leadership structure, potentially impacting the company’s strategic direction and governance, which may influence stakeholder confidence and operational efficiency.

Pu’er Lancang Ancient Tea Co. Approves Net Proceeds Change and Redesignates Director

Pu’er Lancang Ancient Tea Co., Ltd. held its 2025 third extraordinary general meeting (EGM) on September 26, 2025, where the shareholders approved a change in the use of net proceeds. The meeting saw participation from shareholders holding approximately 59.91% of the company’s issued share capital. Additionally, the company announced the redesignation of Mr. Liu Jiajie from an executive director to a non-executive director, effective immediately, due to his personal career planning adjustments. Mr. Liu, who has been with the company since 2020, has extensive experience in capital markets and securities transactions.

Pu’er Lancang Ancient Tea Co., Ltd. Announces EGM to Discuss Financial Strategy

Pu’er Lancang Ancient Tea Co., Ltd. has announced an extraordinary general meeting scheduled for September 26, 2025, to discuss and approve a change in the use of net proceeds. This meeting is significant for stakeholders as it may impact the company’s financial strategy and operational focus, potentially influencing its market positioning and future growth trajectory.

Pu’er Lancang Ancient Tea Co., Ltd. Adjusts Net Proceeds Allocation for Enhanced Operational Flexibility

Pu’er Lancang Ancient Tea Co., Ltd. has announced a reallocation of RMB8.2 million from its net proceeds to enhance working capital and general corporate purposes. This strategic move involves redirecting funds initially intended for sales channel building, brand marketing, IT infrastructure, and the Shanquan Fermentation Project, aiming to optimize operational efficiency and financial flexibility.