Joy Spreader Group Inc. (6988) AI Stock Analysis

• Market Cap: HK$309.22M
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -99.64%
• EPS Growth: 15.42%
• Country: HK
• Employees: 70
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.04
• Shares Outstanding: 2,371,927,200
• 10 Day Avg. Volume: 764,496
• 30 Day Avg. Volume: 1,449,378
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -4.72
• 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: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, with significant revenue declines and profitability issues. Technical analysis suggests bearish momentum, and the valuation is unattractive due to a negative P/E ratio. These factors collectively result in a low overall score.

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 primarily through its digital marketing services, including subscription fees for its marketing platforms, performance-based advertising revenues, and consulting fees for analytics and strategy optimization. Key revenue streams include monthly subscriptions from businesses utilizing its software solutions, a commission-based model for successful advertising campaigns, and contracts with large enterprises for customized marketing strategies. Additionally, partnerships with major social media platforms and advertising networks help the company expand its reach and enhance service offerings, contributing significantly to its earnings.

Joy Spreader Group Inc. Financial Statement Overview

Summary

Joy Spreader Group Inc. faces significant financial challenges, including declining revenues, negative profitability margins, and high leverage. The company also struggles with cash flow issues, indicating potential liquidity risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.98M	113.31M	5.08B	3.72B	1.40B	923.92M
Gross Profit	1.12M	-3.29M	446.41M	436.96M	451.85M	301.56M
EBITDA	-786.75M	-1.05B	-751.72M	-300.31M	269.94M	157.22M
Net Income	-798.84M	-1.07B	-784.17M	-339.12M	244.64M	138.68M
Balance Sheet
Total Assets	648.26M	822.23M	1.87B	2.80B	2.46B	2.28B
Cash, Cash Equivalents and Short-Term Investments	210.30M	230.40M	327.96M	576.00M	648.27M	1.21B
Total Debt	11.75M	22.17M	41.36M	43.08M	17.18M	21.04M
Total Liabilities	304.13M	403.07M	292.69M	384.04M	142.05M	121.69M
Stockholders Equity	432.97M	502.64M	1.60B	2.41B	2.32B	2.16B
Cash Flow
Free Cash Flow	-37.78M	-54.81M	-256.66M	-561.39M	-382.38M	-425.30M
Operating Cash Flow	-25.62M	-54.54M	-237.76M	-526.29M	-342.25M	-411.08M
Investing Cash Flow	-5.40M	-10.46M	41.03M	-91.95M	-78.86M	-20.54M
Financing Cash Flow	-26.67M	-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: Negative
• 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 below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 28.35 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
1948	61 Neutral	HK$2.58B	20.18	8.02%	0.93%	40.20%	26.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1860	60 Neutral	HK$24.56B	80.33	15.99%	―	51.81%	86.98%
1762	53 Neutral	HK$1.50B	586.67	0.45%	―	35.73%	-88.89%
1490	49 Neutral	HK$218.22M	78.52	-0.67%	―	2.85%	-118.89%
6988	46 Neutral	HK$309.22M	―	-96.45%	―	-99.64%	15.42%

Joy Spreader Group Inc. Corporate Events

Joy Spreader Group Reports Mixed Interim Results with Strategic Shifts

Joy Spreader Group Inc. announced its interim results for the six months ending June 30, 2025, showing a significant reduction in revenue by 92.01% compared to the previous year. Despite this, the company achieved a substantial increase in gross profit by 1,002.27%, and a reduction in net loss by 75.91%. The culture business saw a notable sales increase of 313.64%, while overseas e-commerce sales and algorithm-based marketing experienced declines. These results indicate a shift in the company’s operational focus and market performance.

Joy Spreader Group Inc. Schedules Board Meeting for Interim Results and Dividend Consideration

Joy Spreader Group Inc. has announced a board meeting scheduled for August 28, 2025, to review and approve the unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, signaling potential financial distributions to shareholders, which could impact investor sentiment and the company’s market positioning.