Timeless Software Limited (8028) AI Stock Analysis

• Market Cap: HK$166.96M
• Dividend Yield: N/A
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: 90.42%
• EPS Growth: 48.07%
• Country: HK
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 505,932,280
• 10 Day Avg. Volume: 986,920
• 30 Day Avg. Volume: 3,039,129
• PEG Ratio: 0.11
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -4.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$0.33 ▲(17.86% Upside)

The score is held back primarily by weak financial quality—ongoing losses, extremely thin gross margin, and negative operating/free cash flow—despite a stronger balance sheet with zero reported debt. Technicals provide the main support via a clear uptrend and positive momentum indicators, while valuation remains challenged due to the negative P/E.

Positive Factors

Zero reported debt

Elimination of reported debt materially lowers leverage and interest burden, improving financial flexibility. Over a 2–6 month horizon this strengthens the company’s ability to fund operations or absorb shocks without immediate refinancing, supporting strategic options and stability.

Revenue rebound

A sustained near-doubling of revenue indicates regained scale and market demand; higher top-line gives scope for fixed-cost absorption and operational leverage. If maintained, this revenue base provides a platform for margin improvement and investment in process or product enhancements.

Substantial equity buffer

A sizable equity base provides a capital buffer to absorb ongoing losses and fund operations without immediate dilution or debt. This supports the company’s runway for executing turnarounds or scaling initiatives and reduces near-term solvency pressure compared with highly leveraged peers.

Negative Factors

Extremely thin gross margin

An almost-zero gross margin signals limited pricing power or very high variable costs, constraining the company’s ability to move to sustained profitability. Structurally thin gross economics make it difficult to fund SG&A or R&D, and small adverse cost moves can quickly flip margins further negative.

Negative operating and free cash flow

Persistent cash burn from operations reduces internal financing capacity and raises execution and funding risk. Over months this can force asset sales, external financing, or cost cuts; it constrains investment and increases the likelihood of dilutive or costly financing if cash flow reversal is not achieved.

Ongoing net losses and negative ROE

Continued losses and deeply negative ROE erode shareholder capital and undermine long-term returns. If persistent, this reduces reinvestment capacity, weakens investor confidence in management’s execution, and increases the risk of capital restoration actions that can alter strategy or dilute existing holders.

Timeless Software Limited Business Overview & Revenue Model

Company Description

Timeless Software Limited, an investment holding company, engages in mining business in the People's Republic of China. It operates in two segments, Mining Business and Other Business. The company explores for, exploits, processes, and sells nickel and copper ores, as well as gold and iron ores. It has interest in the Baishiquan nickel-copper mine located in Xinjiang. The company is also involved in the research, development, and sale agency of bio and nano materials products; and provision of software maintenance and development services. In addition, it engages in the technology and business investment activities. The company was incorporated in 1996 and is based in Hong Kong, Hong Kong.

How the Company Makes Money

Timeless Software Limited generates revenue through various streams, primarily from the sale of software products and services. The company offers customized software solutions to clients, which include licensing fees, subscription models, and service contracts. Additionally, they may engage in partnerships with other technology firms to expand their market reach and enhance their service offerings. These collaborations often involve revenue sharing agreements or joint ventures that contribute to the company's overall earnings.

Timeless Software Limited Financial Statement Overview

Summary

Timeless Software Limited is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. The balance sheet reflects weakened financial health with decreasing equity and assets. Cash flow issues, including negative free cash flow, underscore operational difficulties and potential liquidity risks. The company needs strategic financial improvements to regain stability.

Income Statement

The company has experienced significant revenue volatility, with a notable decline from 2021 to 2024. Gross profit margin is negative in 2024, indicating costs exceed revenues. Net profit margin is also negative, reflecting ongoing losses. EBIT and EBITDA margins are deeply negative, showing operational inefficiencies. Overall, the income statement reveals substantial financial struggles.

Balance Sheet

The balance sheet shows a decrease in stockholders' equity, indicating financial strain. The debt-to-equity ratio is relatively low, suggesting manageable leverage levels. However, the equity ratio has declined over the years, which raises concerns about long-term financial stability. The company's assets are shrinking, which could impact future operations.

Cash Flow

The cash flow statement highlights negative free cash flow in recent years, reflecting cash outflows exceeding inflows. The free cash flow to net income ratio is negative, consistent with net losses. Operating cash flow to net income ratio is also negative, indicating operational challenges. The cash position has weakened, raising liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.15M	110.62M	48.25M	160.00K	80.20M	189.94M
Gross Profit	-6.75M	304.00K	-4.78M	-178.00K	51.13M	97.31M
EBITDA	-18.45M	-15.50M	-20.05M	-9.01M	47.44M	98.52M
Net Income	-15.64M	-12.42M	-19.44M	-8.04M	6.95M	7.98M
Balance Sheet
Total Assets	190.61M	117.97M	122.48M	146.87M	181.30M	194.44M
Cash, Cash Equivalents and Short-Term Investments	92.56M	73.08M	82.64M	102.43M	128.78M	129.00M
Total Debt	30.00M	0.00	9.80M	9.00M	11.20M	15.00M
Total Liabilities	98.70M	22.42M	24.82M	29.00M	32.94M	59.16M
Stockholders Equity	54.62M	57.04M	40.05M	51.01M	61.06M	52.78M
Cash Flow
Free Cash Flow	-24.74M	-15.89M	-21.64M	-7.56M	34.85M	73.61M
Operating Cash Flow	-22.62M	-12.20M	-21.00M	-6.05M	48.68M	85.27M
Investing Cash Flow	-64.25M	-2.35M	-20.54M	-7.91M	-581.00K	-9.52M
Financing Cash Flow	71.20M	5.25M	4.50M	-13.95M	-41.92M	-13.89M

Timeless Software Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8028, the sentiment is Positive. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.28, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8028.

Timeless Software Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2623	66 Neutral	HK$1.71B	20.49	14.56%	―	-70.82%	5182.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1370	51 Neutral	HK$457.89M	-1.34	-41.19%	―	-6.51%	41.00%
8028	50 Neutral	HK$166.96M	-11.15	-25.89%	―	90.42%	48.07%
1380	46 Neutral	HK$420.90M	-2.61	―	―	-52.58%	27.72%
0601	45 Neutral	HK$48.00M	-0.12	―	―	-13.76%	-1.08%
0159	41 Neutral	HK$788.82M	-22.97	-7.49%	―	―	-164.29%