Strong Equity BaseA ~78% equity ratio provides a durable solvency buffer against operating shocks, reducing bankruptcy risk and supporting multi-month funding of projects. This strong capital base gives management flexibility to pursue strategic partnerships or absorb further short-term losses without immediate distress.

Improving Operating Cash FlowRising operating cash flow and a positive OCF-to-net-income ratio signal better core cash generation, which is more sustainable than accounting profits. Durable cash improvement supports working capital, project execution and limited reinvestment without immediate external financing, if trends persist.

High Gross MarginA 54% gross margin indicates the business retains substantial value over direct costs, reflecting pricing power or low variable costs in services/software. If management can control operating expenses, this structural margin provides a clear path toward restoring operating profitability as revenues stabilize or grow.

Bears Say

Declining RevenueA 15.7% year-over-year revenue decline is a material structural headwind that reduces operating leverage and makes fixed-cost recovery harder. Sustained top-line weakness erodes scale benefits, constrains margin improvement prospects and lengthens the timeline to achieve consistent profitability.

Severe Net LossesDeep negative net margin (~-90.7%) and negative EBIT/EBITDA indicate fundamental unprofitability, signaling structural issues in cost base or pricing. Persistent heavy losses deplete retained earnings, impair reinvestment capacity, and increase pressure for restructuring or external capital over the medium term.

Volatile And Negative Free Cash FlowVolatile free cash flow and negative FCF-to-net-income show cash conversion is unreliable, raising liquidity and funding risk. Over several months this limits ability to invest in sales, R&D or large contracts, and increases dependence on financing or asset sales to sustain operations and support growth initiatives.

8178 FAQ

What was China Information Technology Development Limited’s price range in the past 12 months?

China Information Technology Development Limited lowest stock price was HK$0.23 and its highest was HK$3.40 in the past 12 months.

What is China Information Technology Development Limited’s market cap?

China Information Technology Development Limited’s market cap is HK$28.46M.

When is China Information Technology Development Limited’s upcoming earnings report date?

China Information Technology Development Limited’s upcoming earnings report date is Mar 26, 2026 which is in 31 days.

How were China Information Technology Development Limited’s earnings last quarter?

Currently, no data Available

Is China Information Technology Development Limited overvalued?

According to Wall Street analysts China Information Technology Development Limited’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does China Information Technology Development Limited pay dividends?

China Information Technology Development Limited does not currently pay dividends.

What is China Information Technology Development Limited’s EPS estimate?

China Information Technology Development Limited’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does China Information Technology Development Limited have?

China Information Technology Development Limited has 114,739,700 shares outstanding.

What happened to China Information Technology Development Limited’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of China Information Technology Development Limited?

Currently, no hedge funds are holding shares in HK:8178

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

China Information Technology Development Stock Smart Score

Underperform

Technicals

Fundamentals

Return on Equity

-37.29%

Trailing 12-Months

Asset Growth

-16.63%

Trailing 12-Months

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Company Description

China Information Technology Development Limited

China Information Technology Development Limited, an investment holding company, provides software development, system integration, and technical support and maintenance services in the People's Republic of China. The company develops and sells computer software and hardware; and provides IT infrastructure solutions and maintenance, money lending, and securities trading services. It also offers office management services; big data application services; and asset acquisition, management, and consultancy services. The company was formerly known as Xteam Software International Limited. China Information Technology Development Limited was founded in 2001 and is headquartered in Kwun Tong, Hong Kong.