Joy Spreader Group Inc. (6988) AI Stock Analysis

• Market Cap: €245.48M
• Dividend Yield: N/A
• Average Volume (3M): 610.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -97.77%
• EPS Growth: -36.23%
• Country: HK
• Employees: 70
• Sector: Industrials
• Sector Strength: 89
• Industry: Advertising Agencies
• EPS (TTM): -0.45
• Shares Outstanding: 2,371,927,200
• 10 Day Avg. Volume: 295,700
• 30 Day Avg. Volume: 610,966
• PEG Ratio: 0.03
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.55
• 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

• Rating: 50 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Joy Spreader Group Inc.'s overall stock score is primarily driven by its poor financial performance, characterized by negative profitability and high leverage. Technical analysis provides some short-term optimism, but the longer-term trends remain negative. The concerning valuation further contributes to the low score, with negative earnings being a significant risk factor for investors.

Joy Spreader Group Inc. Business Overview & Revenue Model

Company Description

Joy Spreader Group Inc., a marketing technology company, provides digital marketing services in the People's Republic of China. The company provides mobile new media performance-based marketing services to interactive entertainment and other digital products providers, such as game developers, online literature providers, app and other digital product developers, etc. It also distributes and publishes products and mobile new media content for subscribers to purchase, download, install, or top up for the content, as well as provides video e-commerce marketing services. Joy Spreader Group Inc. was founded in 2008 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Joy Spreader Group Inc. generates revenue through its performance-based marketing services, where it earns fees based on the effectiveness of marketing campaigns. The company utilizes data-driven insights and proprietary algorithms to deliver targeted advertisements across various digital platforms, including mobile apps and social media. The effectiveness of these campaigns is measured by user engagement and conversions, which directly impact the revenue generated. Additionally, Joy Spreader forms strategic partnerships with digital platforms and advertisers, enhancing its ability to reach broader audiences and improve campaign outcomes. These partnerships, along with its technological expertise, contribute significantly to the company's earnings.

Joy Spreader Group Inc. Financial Statement Overview

Summary

Joy Spreader Group Inc. is facing severe financial challenges. The income statement reveals negative profitability margins, declining revenues, and erratic trends. The balance sheet indicates high leverage with a negative ROE, though a solid cash position provides some flexibility. Cash flow analysis shows negative operating and free cash flows, indicating cash burn and inefficiencies. Overall, the financial outlook is poor, requiring urgent corrective action.

Income Statement

The company's income statement reveals significant challenges. The gross and net profit margins have been negative, indicating inefficiencies and financial strain. Revenue has shown an erratic trend, with recent years experiencing a sharp decline. The company also struggles with negative EBIT and EBITDA margins, suggesting operational difficulties.

Balance Sheet

The balance sheet shows a reasonable equity ratio, but the company faces high debt levels relative to equity, as indicated by the increasing debt-to-equity ratio. Return on Equity (ROE) has been negative, reflecting poor profitability. However, the company has maintained a solid cash position, which may provide some financial flexibility.

Cash Flow

The cash flow analysis shows consistently negative operating and free cash flows, indicating cash burn and operational inefficiencies. The free cash flow to net income ratio has been unfavorable, while the operating cash flow to net income ratio suggests that the company struggles to convert income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.31M	5.08B	3.72B	1.40B	923.92M
Gross Profit	-3.29M	446.41M	436.96M	451.85M	301.56M
EBITDA	-1.05B	-751.72M	-300.31M	269.94M	157.22M
Net Income	-1.07B	-784.17M	-339.12M	244.64M	138.68M
Balance Sheet
Total Assets	822.23M	1.87B	2.80B	2.46B	2.28B
Cash, Cash Equivalents and Short-Term Investments	230.40M	327.96M	576.00M	648.27M	1.21B
Total Debt	22.17M	41.36M	43.08M	17.18M	21.04M
Total Liabilities	403.07M	292.69M	384.04M	142.05M	121.69M
Stockholders Equity	502.64M	1.60B	2.41B	2.32B	2.16B
Cash Flow
Free Cash Flow	-54.81M	-256.66M	-561.39M	-382.38M	-425.30M
Operating Cash Flow	-54.54M	-237.76M	-526.29M	-342.25M	-411.08M
Investing Cash Flow	-10.46M	41.03M	-91.95M	-78.86M	-20.54M
Financing Cash Flow	-18.46M	-18.06M	587.17M	-168.74M	1.50B

Joy Spreader Group Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6988, the sentiment is Positive. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.49 is Neutral, 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 Positive sentiment for HK:6988.

Joy Spreader Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1948	70 Outperform	HK$2.67B	25.84	6.63%	0.90%	26.80%	1.89%
1860	70 Outperform	HK$11.83B	52.54	11.91%	―	47.52%	15.10%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%
1490	56 Neutral	HK$225.15M	72.22	0.50%	―	-4.08%	-93.57%
1762	55 Neutral	HK$1.32B	450.00	0.17%	―	22.80%	-87.20%
6988	50 Neutral	€245.48M	―	-102.17%	―	-97.77%	-36.23%
2131	―	HK$362.02M	1,516.67	-0.05%	―	―	―

Joy Spreader Group Inc. Corporate Events

Joy Spreader Group Inc. Announces Board and Committee Changes

Joy Spreader Group Inc., a company listed on the Hong Kong Stock Exchange, announced changes in its board of directors and committee compositions. Mr. Hu Jiawei has resigned as a non-executive director to focus on other commitments, and Mr. Wang Hongpeng, with extensive experience in cultural technology and capital markets, has been appointed as his replacement. This change is expected to bring new perspectives to the company’s strategic direction, potentially impacting its operations and market positioning.

Joy Spreader Group Inc. Announces Board Composition and Roles

Joy Spreader Group Inc. announced the composition of its board of directors and their respective roles, highlighting the leadership structure that guides the company’s strategic direction. This announcement may impact the company’s governance and operational strategies, potentially influencing its market positioning and stakeholder relations.

Joy Spreader Group Inc. Updates Nomination Committee Terms

Joy Spreader Group Inc. has revised the terms of reference for its Nomination Committee, effective June 30, 2025. The committee, composed mainly of independent non-executive directors, is tasked with reviewing the board’s structure and composition, recommending suitable candidates for directorships, and assessing directors’ independence and contributions. These changes aim to enhance the company’s governance by ensuring a diverse and skilled board, which could positively impact its strategic direction and stakeholder confidence.

Joy Spreader Group Inc. AGM Resolutions Passed Unanimously

Joy Spreader Group Inc. announced the successful passing of all resolutions at its annual general meeting held on June 27, 2025. Key resolutions included the adoption of the company’s financial statements, re-election of directors, and granting of mandates for share issuance and buyback. The unanimous approval of these resolutions by shareholders underscores strong support for the company’s strategic direction and governance, potentially enhancing its market position and operational capabilities.

Joy Spreader Group Inc. Announces 2025 Annual General Meeting

Joy Spreader Group Inc. has announced its upcoming annual general meeting (AGM) scheduled for June 27, 2025, in Beijing. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditors. The meeting will also address resolutions to authorize the board to manage share allotments and director remunerations, potentially impacting the company’s governance and shareholder value.