Joy Spreader Group Inc. (6988) AI Stock Analysis

• Market Cap: HK$285.61M
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -97.77%
• EPS Growth: -36.23%
• Country: HK
• Employees: 70
• Sector: Industrials
• Sector Strength: 85
• Industry: Advertising Agencies
• EPS (TTM): -0.30
• Shares Outstanding: 2,371,927,200
• 10 Day Avg. Volume: 834,100
• 30 Day Avg. Volume: 2,616,085
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 47 reflects significant financial performance weaknesses, including negative profitability and cash flow challenges. While technical analysis shows some positive momentum, valuation concerns with negative earnings and no dividend yield weigh heavily on the score.

Joy Spreader Group Inc. Business Overview & Revenue Model

Company Description

Joy Spreader Group Inc. (6988) is a technology company operating within the digital marketing sector, primarily focusing on performance-based marketing services. The company leverages data analytics and algorithm-driven technologies to optimize marketing strategies and deliver targeted content across various digital platforms. Its core services include intelligent marketing solutions that facilitate effective distribution of digital content, advertisements, and promotional campaigns tailored to consumer preferences.

How the Company Makes Money

Joy Spreader Group Inc. generates revenue through its performance-based marketing services, which involve using proprietary algorithms and data-driven insights to enhance the efficiency of digital advertising campaigns. The company earns money by helping brands and advertisers reach their target audience more effectively across digital platforms, including social media and e-commerce sites. Revenue is primarily derived from commissions and fees based on the performance of these marketing campaigns, such as the number of clicks, conversions, or sales generated through their strategic distribution. Significant partnerships with major digital platforms and advertisers further contribute to its earnings, allowing Joy Spreader to scale its operations and expand its market reach.

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: Neutral
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1860	68 Neutral	HK$17.75B	76.44	11.91%	―	47.52%	15.10%
1948	67 Neutral	HK$3.91B	37.80	6.63%	0.61%	26.80%	1.89%
Sector *	58 Neutral	HK$13.61B	5.40	-2.78%	5.74%	2.29%	-57.49%
1490	55 Neutral	HK$225.15M	72.22	0.50%	―	-4.08%	-93.57%
1762	53 Neutral	HK$1.23B	450.00	0.17%	―	22.80%	-87.20%
6988	47 Neutral	HK$285.61M	―	-102.17%	―	-97.77%	-36.23%

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.