Kingwisoft Technology Group Company Limited (8295) AI Stock Analysis

• Market Cap: HK$133.73M
• Dividend Yield: N/A
• Average Volume (3M): 464.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -1.59%
• EPS Growth: 20.07%
• Country: HK
• Employees: 14,201
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.01
• Shares Outstanding: 4,776,019,500
• 10 Day Avg. Volume: 236,000
• 30 Day Avg. Volume: 464,666
• PEG Ratio: -0.21
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 5.55
• 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: 41 Neutral
• Price Target: HK$0.03 ▲(3.33% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

The overall stock score is primarily influenced by weak financial performance and poor valuation metrics. The technical analysis indicates bearish momentum, further contributing to the low score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Improving free cash flow

A large improvement in free cash flow and a positive free-cash-flow-to-net-income ratio indicate the company can generate real cash despite accounting losses. This supports runway, funds discretionary investment or restructuring, and reduces immediate financing needs over the next 2–6 months.

Recurring revenue via cloud subscriptions

Recurring subscription and support revenue increases revenue visibility and customer stickiness. A stable base of recurring fees supports higher lifetime value, improves cash predictability, and helps margins recover as fixed costs are leveraged over repeatable service streams.

Broad industry exposure and digital services focus

A focus on digital transformation across diverse end markets (finance, healthcare, e‑commerce) and a solutions-oriented business model reduce single‑market risk and enable cross-selling. This breadth supports steady demand for bespoke and cloud services over the medium term.

Negative Factors

Declining revenue trend

Revenue contraction in the latest period points to weakening sales or lost contracts. For a service firm, sustained top-line decline undermines scale economics and makes margin recovery and investment in product development harder without structural client wins or market share restoration.

Very thin margins and operating losses

Extremely low gross margins and negative EBIT/EBITDA suggest services are highly commoditized or pricing is pressured. Persistent operating losses erode equity and limit capacity to invest in higher‑margin products or sales initiatives, risking long‑term competitiveness.

Negative ROE with moderate leverage

A negative ROE indicates the business is destroying shareholder capital, while moderate leverage increases financial strain. This combination restricts strategic flexibility, raises refinancing risk, and could constrain growth or force dilutive capital measures if losses persist.

Kingwisoft Technology Group Company Limited Business Overview & Revenue Model

Company Description

Kingwisoft Technology Group Company Limited, an investment holding company, provides back-office, marketing, and data center services. The company offers back-office services, including business consultation, information consultation, and data query services; information processing and other customized business process outsourcing services; and designing, installing, testing, and trial-testing contact service systems and centers. It also provides corporate services. The company was formerly known as ZZ Technology Group Company Limited and changed its name to Kingwisoft Technology Group Company Limited in June 2022. The company was incorporated in 2010 and is headquartered in Causeway Bay, Hong Kong. Kingwisoft Technology Group Company Limited is a subsidiary of Zhong Zhi Xin Zhuo Capital Company Ltd.

How the Company Makes Money

Kingwisoft Technology Group Company Limited generates revenue primarily through its software development and IT consultancy services. The company charges clients for bespoke software solutions tailored to their specific needs, which often involves a project-based pricing model. Additionally, Kingwisoft earns recurring income from subscription-based cloud services and ongoing support agreements with its clients. The company may also partner with other technology firms to deliver integrated solutions, which can provide additional revenue streams through joint ventures or collaborative projects. Key factors contributing to its earnings include the increasing demand for digital transformation solutions and strong client relationships in various sectors.

Kingwisoft Technology Group Company Limited Financial Statement Overview

Summary

Kingwisoft Technology Group is facing financial challenges with declining revenues and negative profitability margins. The balance sheet shows moderate leverage, but the negative return on equity is concerning. Cash flow improvements are a positive sign, but overall financial health remains weak, requiring strategic adjustments to improve profitability and stability.

Income Statement

The income statement shows declining revenue with a negative growth rate of -4.3% in the latest period. Margins are under pressure, with a gross profit margin of 3.29% and a net profit margin of -16.74%. The company is experiencing losses at the EBIT and EBITDA levels, indicating operational challenges.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.50. However, the return on equity is negative at -34.10%, indicating inefficiencies in generating returns from equity. The equity ratio is not provided, but the overall financial stability appears to be under strain.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth at 68.19%, but the operating cash flow to net income ratio is low at 0.50, suggesting limited cash generation relative to net losses. The free cash flow to net income ratio is 0.57, indicating some ability to cover net losses with free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.33B	1.24B	1.24B	888.62M	734.02M	264.37M
Gross Profit	-30.99M	40.77M	127.88M	121.24M	187.07M	83.16M
EBITDA	-102.41M	-81.24M	-77.55M	-133.07M	163.00M	75.53M
Net Income	-298.85M	-207.73M	-197.38M	-230.33M	80.35M	26.15M
Balance Sheet
Total Assets	1.07B	1.03B	1.28B	1.49B	1.58B	1.42B
Cash, Cash Equivalents and Short-Term Investments	106.71M	104.76M	87.48M	174.76M	90.93M	203.27M
Total Debt	308.54M	303.83M	265.51M	294.07M	179.73M	57.02M
Total Liabilities	412.85M	411.43M	457.59M	466.97M	488.18M	399.81M
Stockholders Equity	607.86M	609.21M	816.60M	1.01B	1.07B	999.90M
Cash Flow
Free Cash Flow	50.92M	42.15M	23.32M	-103.66M	-115.47M	180.54M
Operating Cash Flow	63.42M	74.13M	60.27M	-46.02M	-33.27M	200.12M
Investing Cash Flow	52.14M	-15.45M	-18.92M	-52.21M	-83.17M	-356.41M
Financing Cash Flow	-92.97M	-36.67M	-124.31M	171.34M	9.63M	-36.33M

Kingwisoft Technology Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8295, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8295.

Kingwisoft Technology Group Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
2263	61 Neutral	HK$280.00M	9.85	2.10%	―	-9.48%	130.30%
0211	50 Neutral	HK$176.66M	-4.61	-17.99%	―	―	―
0572	50 Neutral	HK$129.65M	2.40	2.13%	―	419.68%	―
0356	45 Neutral	HK$180.53M	-30.19	-16.42%	―	―	―
8295	41 Neutral	HK$133.73M	-0.81	-31.14%	―	-1.59%	20.07%