Timeless Software Limited (8028) AI Stock Analysis

• Market Cap: HK$136.60M
• Dividend Yield: N/A
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 90.42%
• EPS Growth: 48.07%
• Country: HK
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• 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: 45 Neutral
• Price Target: HK$0.33 ▲(18.57% Upside)
• Action: Downgraded Date: 01/27/26
• Date: Action: Downgraded 01/27/26

The score is held down primarily by weak financial performance—persistent losses, ultra-thin gross margin, and negative operating/free cash flow—despite revenue rebounding and debt reduced to zero. Technicals are neutral-to-weak (negative MACD and price below key moving averages), and valuation is constrained by a negative P/E with no dividend support.

Positive Factors

Revenue growth rebound

A >2x revenue increase shows the company can scale sales and regain market traction. Sustained top-line expansion provides operating leverage potential and more runway to absorb fixed costs, improving the chance of converting scale into durable profit recovery if margins are addressed.

Zero financial leverage

Elimination of reported debt materially lowers financial risk and interest burden, improving flexibility to fund operations or invest through equity or internal resources. A debt-free balance sheet is a durable structural strength that reduces default and refinancing risk over the medium term.

Prior profitable operating history

Historical profitability indicates the business model can generate positive earnings under the right conditions. This suggests operational capacity and market demand exist, and with scale or cost discipline restored, the company has a credible path to return to sustainable profits over a multi-quarter horizon.

Negative Factors

Negative operating and free cash flow

Persistent cash consumption erodes liquidity and increases reliance on external financing or equity issuance. Negative operating and free cash flow are durable risks that constrain reinvestment, limit runway for strategic initiatives, and raise execution risk if the company cannot restore positive cash generation.

Extremely thin gross margin

A near-zero gross margin implies minimal pricing power or high direct costs, leaving little room to cover operating expenses. This structural margin weakness undermines the ability of revenue growth to drive profits and makes the business highly sensitive to cost inflation or competitive price pressure over the medium term.

Continued losses and negative ROE

Sustained losses and negative return on equity indicate potential erosion of shareholder capital and weaken internal funding capacity. Over time this limits strategic flexibility, raises dilution risk from future financing, and signals that management must materially improve operating performance to restore capital productivity.

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

Despite strong revenue growth (48.3M to 110.6M), profitability remains weak with a net margin of -11.2% and extremely thin gross margin (~0.3%). Cash flow is a major concern with negative operating cash flow (-12.2M) and negative free cash flow (-15.9M) in 2025. The balance sheet is comparatively stronger with debt reduced to zero, but continued losses (ROE -21.8%) limit the overall financial score.

Income Statement

Results show a sharp rebound in scale but weak profitability. Revenue rose from 48.3M (2024) to 110.6M (2025), but the company remains loss-making with a net margin of -11.2% in 2025 (improved from -40.3% in 2024). Gross margin is extremely thin in 2025 (~0.3%), indicating limited pricing power and/or high cost pressure, and operating profitability is still negative (EBIT margin -14.3%). The multi-year pattern is volatile (profitable in 2021–2022, then losses in 2023–2025), which lowers confidence in earnings durability.

Balance Sheet

The balance sheet is a relative strength, with equity still substantial (57.0M in 2025) and reported total debt reduced to 0 in 2025 (down from 9.8M in 2024), implying improved financial flexibility and lower leverage risk. Total assets are broadly stable (118.0M in 2025 vs. 122.5M in 2024). The key weakness is profitability pressure on equity: return on equity remains negative in 2025 (-21.8%), reflecting continued losses and potential erosion of capital if this persists.

Cash Flow

Cash generation has deteriorated materially, with operating cash flow negative in 2025 (-12.2M) and 2024 (-21.0M), and free cash flow also negative in 2025 (-15.9M). This contrasts with strong positive cash flow in 2020–2022, highlighting a significant swing in operating performance and/or working-capital dynamics. While free cash flow loss was smaller than net loss in 2025 (free cash flow to net income ~1.30), the business is still consuming cash, which increases execution and funding risk if the trend does not reverse.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 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: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.28, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$2.21B	-10.74	14.56%	―	-70.82%	5182.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0601	47 Neutral	HK$55.11M	-0.17	―	―	-13.76%	-1.08%
8028	45 Neutral	HK$136.60M	-17.03	-25.89%	―	90.42%	48.07%
1370	45 Neutral	HK$417.01M	-1.28	-41.19%	―	-6.51%	41.00%
0159	41 Neutral	HK$714.58M	-17.17	-7.49%	―	―	-164.29%