Life Concepts Holdings Limited (8056) AI Stock Analysis

• Market Cap: HK$15.31M
• Dividend Yield: N/A
• Average Volume (3M): 139.79K
• Price to Earnings (P/E): 0.3
• Beta (1Y): 0.28
• Revenue Growth: -43.85%
• EPS Growth: N/A
• Country: HK
• Employees: 17
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.04
• Shares Outstanding: 113,414,540
• 10 Day Avg. Volume: 92,475
• 30 Day Avg. Volume: 139,791
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.28
• Price to Sales (P/S): 2.58
• P/FCF Ratio: -1.55
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.13 ▼(-6.43% Downside)

The overall stock score of 43.6 reflects significant financial challenges and bearish technical indicators. The company's financial performance is the most critical factor, with declining revenues, negative equity, and cash flow issues. Technical analysis supports a bearish outlook, while the extremely low P/E ratio indicates potential undervaluation due to financial distress. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Diversified Revenue Channels

Multiple sales channels (direct-to-consumer plus retail partnerships) create durable distribution breadth, lowering single-channel dependency. Over the medium term this supports customer acquisition flexibility, helps smooth revenue volatility across channels, and aids scalable growth execution.

Strategic Distribution Partnerships

Partnerships with health professionals and distributors strengthen go-to-market capability and credibility, supporting sustained product adoption. These relationships provide durable access to referral channels and retail shelf space, improving long-term revenue resilience and marketing efficiency.

Product Innovation Focus

An explicit R&D and product innovation focus enables the business to adapt to evolving health trends and launch differentiated offerings. Over several months this supports competitive positioning, potential margin protection through unique SKUs, and the ability to capture niche, higher-return segments.

Negative Factors

Sharp Revenue Decline

A near-45% revenue decline materially weakens scale economics and pressures fixed-cost absorption, making margin recovery harder. Persisting top-line contraction reduces reinvestment capacity, undermines sales leverage, and heightens execution risk for any turnaround over the medium term.

Negative Equity / Solvency Risk

Negative shareholders' equity signals chronic losses or capital depletion, limiting access to debt or equity without dilution. This structural solvency weakness increases refinancing risk, constrains strategic flexibility, and may force corrective actions that impair long-term operational continuity.

Cash Flow Volatility and Negative Operating Cash Flow

Negative operating cash flow and volatile free cash flow undermine the company's ability to fund operations, R&D, and distribution without external capital. Sustained cash deficits elevate liquidity risk, increase financing costs, and can force asset sales or cutbacks that damage long-term growth prospects.

Life Concepts Holdings Limited Business Overview & Revenue Model

Company Description

Life Concepts Holdings Limited, an investment holding company, operates restaurants in Italian, Western, and Asian style in Hong Kong and Mainland China. It also provides catering management and design, and interior design and fitting-out services; and consulting services for organic vegetables research and development, plantation, and sales. In addition, the company organizes promotional events for restaurants; operates a cricket club; and provides financial institution intermediation services for resources allocation. The company was formerly known as Dining Concepts Holdings Limited and changed its name to Life Concepts Holdings Limited in June 2019. The company was incorporated in 2014 and is headquartered in Central, Hong Kong. Life Concepts Holdings Limited is a subsidiary of Strong Day Holdings Limited.

How the Company Makes Money

Life Concepts Holdings generates revenue through several key streams, including the sale of nutritional supplements and wellness products, both through direct-to-consumer channels and retail partnerships. The company also offers health-related services, potentially including consultations, fitness programs, and wellness workshops, which contribute to its earnings. Additionally, strategic partnerships with health professionals and distributors enhance its market reach and brand recognition, allowing for increased sales and customer engagement. The company’s revenue model is further supported by a focus on product innovation, enabling it to meet evolving consumer demands and capitalize on emerging health trends.

Life Concepts Holdings Limited Financial Statement Overview

Summary

Life Concepts Holdings Limited faces significant financial challenges across all verticals. The income statement shows declining revenues and profitability, the balance sheet reflects a precarious financial position with negative equity, and cash flow statements reveal volatility and cash management issues. The company needs to address these areas to improve its financial health and stability.

Income Statement

The income statement reveals a concerning trend with declining revenues and profitability. The company experienced a significant revenue drop of 44.49% in the latest year, and gross profit turned negative, indicating cost management issues. Despite a positive EBITDA in the latest year, the net profit margin remains negative, highlighting ongoing profitability challenges.

Balance Sheet

The balance sheet shows a weak financial position with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, and the return on equity is misleadingly positive due to negative equity. The equity ratio is also negative, reflecting a high-risk financial structure.

Cash Flow

Cash flow analysis shows volatility, with a significant decline in free cash flow growth and negative operating cash flow in the latest year. The operating cash flow to net income ratio is negative, indicating cash flow challenges despite reported net income. The free cash flow to net income ratio is not meaningful due to negative free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.82M	7.39M	16.09M	61.36M	162.83M	214.32M
Gross Profit	-4.78M	-2.10M	557.00K	10.85M	70.58M	-12.13M
EBITDA	48.13M	52.88M	-18.49M	-20.34M	-12.22M	3.79M
Net Income	75.80M	49.67M	-19.56M	-28.88M	-40.85M	-64.43M
Balance Sheet
Total Assets	128.02M	128.02M	122.24M	139.25M	150.81M	251.13M
Cash, Cash Equivalents and Short-Term Investments	171.00K	171.00K	1.34M	2.21M	2.52M	12.19M
Total Debt	3.81M	2.38M	820.00K	17.73M	22.74M	60.60M
Total Liabilities	190.72M	190.72M	239.97M	239.07M	261.22M	311.09M
Stockholders Equity	-67.53M	-67.53M	-122.70M	-104.97M	-119.92M	-74.91M
Cash Flow
Free Cash Flow	-12.31M	-12.31M	12.21M	6.38M	-51.00K	-23.08M
Operating Cash Flow	22.59M	-9.71M	12.21M	6.38M	1.86M	-14.35M
Investing Cash Flow	-7.60M	-5.07M	834.00K	-17.06M	13.16M	-72.56M
Financing Cash Flow	20.41M	13.61M	-13.83M	10.39M	-17.72M	68.52M

Life Concepts Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8056, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 49.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8056.

Life Concepts Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8447	50 Neutral	HK$37.00M	-61.67	-3.70%	―	6.55%	98.02%
8096	49 Neutral	HK$25.41M	-5.64	-27.31%	―	14.18%	42.51%
8432	49 Neutral	HK$39.57M	-4.69	-48.61%	―	1.39%	-206.25%
8510	46 Neutral	HK$39.65M	-4.06	―	―	144.78%	10.07%
8367	44 Neutral	HK$30.24M	-1.24	-120.93%	―	2.67%	-264.58%
8056	44 Neutral	HK$15.31M	0.32	―	―	-43.85%	―