Ruicheng (China) Media Group Limited (1640) AI Stock Analysis

• Market Cap: HK$2.63B
• Dividend Yield: N/A
• Average Volume (3M): 992.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 309.32%
• EPS Growth: -205.04%
• Country: HK
• Employees: 107
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.10
• Shares Outstanding: 560,000,000
• 10 Day Avg. Volume: 1,143,800
• 30 Day Avg. Volume: 992,433
• PEG Ratio: -0.03
• Price to Book (P/B): 8.84
• Price to Sales (P/S): 3.81
• P/FCF Ratio: 25.24
• 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: HK$4.50
• Price Target Upside: -4.26% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: HK$4.50 ▼(-4.26% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues, low profitability, and liquidity concerns. Technical analysis indicates a bearish trend with limited momentum. The valuation is unattractive due to a negative P/E ratio and absence of dividend yield. These factors collectively result in a low overall stock score.

Ruicheng (China) Media Group Limited Business Overview & Revenue Model

Company Description

Qian Xun Technology Limited, an investment holding company, provides various advertising services in the People's Republic of China and internationally. It operates through Advertisement and E-Commerce segments. The company offers television advertising; online advertising on platforms, such as websites, mobile applications, social media platforms, and search engines; outdoor advertising on LED screens on or in buildings, and metros or advertising light boxes in car shelters; and other advertising services on radio, magazines, newspapers, and livestreams. It also engages in the sale of used electronic products through e-commerce platforms; and provision of software-as-a-service. The company was formerly known as Ruicheng (China) Media Group Limited and changed its name to Qian Xun Technology Limited in February 2025. Qian Xun Technology Limited was founded in 2003 and is headquartered in Beijing, China.

How the Company Makes Money

Ruicheng (China) Media Group Limited generates revenue primarily through the provision of advertising services. The company earns money by offering customized advertising solutions to clients, which include creative design, media planning, and buying services. Key revenue streams involve fees charged for the design and production of advertising content, as well as commissions or fees for the placement of advertisements across different media channels. The company may also form strategic partnerships with media outlets and other agencies to enhance its service offerings and expand its reach. Additionally, Ruicheng leverages its expertise in media buying to secure advantageous rates for clients, which can also contribute to its earnings.

Ruicheng (China) Media Group Limited Financial Statement Overview

Summary

Ruicheng (China) Media Group Limited is facing significant financial challenges, with declining revenues, low profitability, and increasing leverage. The negative cash flows further emphasize liquidity concerns. While the company has a positive stockholders' equity, the overall financial health remains weak, necessitating strategic improvements to stabilize and grow.

Income Statement

The company has experienced a significant decline in revenue over recent years, with revenue dropping from 845.82M in 2019 to 356.83M in 2024. The gross profit margin has also decreased, indicating reduced profitability. Furthermore, the company has reported negative EBIT and net income in recent years, illustrating ongoing operational challenges and unprofitability.

Balance Sheet

The debt-to-equity ratio has increased over time, suggesting rising leverage which could pose financial risks. The equity ratio has also declined, indicating reduced financial stability. However, the company maintains a positive stockholders' equity, which provides some level of financial stability.

Cash Flow

The company has struggled with negative operating and free cash flows in recent years, which highlights liquidity challenges. With no available positive free cash flow growth, the company's ability to generate cash from operations is concerning, which could impact future financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	356.83M	378.71M	412.66M	441.05M	446.99M
Gross Profit	22.50M	23.57M	10.63M	20.57M	37.45M
EBITDA	-79.86M	-26.51M	-27.11M	12.65M	228.00K
Net Income	-123.70M	-23.47M	-11.38M	445.00K	2.84M
Balance Sheet
Total Assets	459.19M	575.66M	574.16M	404.27M	407.41M
Cash, Cash Equivalents and Short-Term Investments	33.97M	17.85M	5.08M	34.87M	17.77M
Total Debt	96.64M	148.98M	117.18M	116.29M	126.69M
Total Liabilities	305.39M	392.88M	368.04M	186.48M	190.09M
Stockholders Equity	153.82M	182.79M	206.26M	217.64M	217.20M
Cash Flow
Free Cash Flow	53.88M	-36.50M	-33.33M	11.66M	-89.89M
Operating Cash Flow	53.96M	-36.50M	-33.33M	11.66M	-89.87M
Investing Cash Flow	2.29M	156.00K	623.00K	29.38M	-12.83M
Financing Cash Flow	-40.13M	49.12M	2.92M	-7.25M	35.74M

Ruicheng (China) Media Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.70
• 50DMA: Negative
• 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:1640, the sentiment is Positive. The current price of 4.7 is above the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.70, and above the 200-day MA of 3.90, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 76.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1640.

Ruicheng (China) Media Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6113	63 Neutral	2.33B	118.60	30.91%	0.70%	3.04%	-22.93%
1948	61 Neutral	2.97B	23.60	6.45%	0.81%	40.20%	26.39%
1762	53 Neutral	1.69B	660.00	0.17%	―	35.73%	-88.89%
2422	52 Neutral	622.50M	-7.02	-10.56%	―	10.61%	-1890.91%
1640	39 Underperform	HK$2.63B	―	-33.53%	―	309.32%	-205.04%
0205	38 Underperform	314.70M	-22.98	0.00%	―	-4.13%	76.38%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Ruicheng (China) Media Group Limited Corporate Events

Qian Xun Technology Reports Significant Revenue Growth in H1 2025

Qian Xun Technology Limited announced its unaudited consolidated interim results for the six months ending June 30, 2025. The company reported a significant increase in revenue, reaching RMB 647,384,000 compared to RMB 67,144,000 in the same period in 2024. The gross profit also saw a substantial rise to RMB 27,634,000 from RMB 4,954,000. The profit before tax increased to RMB 52,808,000, and the profit attributable to the owners of the company was RMB 51,469,000, a notable improvement from RMB 5,366,000 the previous year. This impressive growth reflects the company’s strengthened market position and operational efficiency.

The most recent analyst rating on (HK:1640) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Ruicheng (China) Media Group Limited stock, see the HK:1640 Stock Forecast page.

Qian Xun Technology Provides Update on Share Placement Proceeds

Qian Xun Technology Limited, a company incorporated in the Cayman Islands, announced a supplemental update to its 2024 Annual Report regarding the use of proceeds from a share placement. The company successfully placed 80 million shares, raising approximately HK$39.4 million. Of these proceeds, HK$23.6 million was used to repay bank borrowings, while the remaining HK$15.8 million was allocated to general working capital, including staff costs and rental expenses. All proceeds were utilized as intended, and no other information in the 2024 Annual Report was affected.

Qian Xun Technology Projects Significant Profit Surge in H1 2025

Qian Xun Technology Limited, a company listed on the Hong Kong Stock Exchange, has announced a significant increase in its unaudited consolidated net profit after tax for the first half of 2025. The company expects to report a net profit between RMB49.6 million and RMB53.6 million, a substantial rise from RMB5.4 million in the same period last year. This growth is primarily driven by the e-commerce business of used electronic products acquired in August 2024, contributing over RMB620 million in revenue. Additionally, the company anticipates a non-recurring gain from the deconsolidation of a subsidiary. However, these figures are preliminary and subject to finalization.

Qian Xun Technology Schedules Board Meeting to Discuss Interim Results

Qian Xun Technology Limited, incorporated in the Cayman Islands, has announced a board meeting scheduled for August 27, 2025. The meeting will focus on approving the unaudited interim results for the first half of 2025 and considering the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Qian Xun Technology Relocates Hong Kong Office

Qian Xun Technology Limited, a company incorporated in the Cayman Islands, has announced a change in its principal place of business in Hong Kong. The new location is Unit 25B02 on the 25th Floor of the Far East Finance Center, effective from July 16, 2025. This move may reflect strategic operational adjustments and could have implications for the company’s logistical or administrative functions.

Qian Xun Technology Partners with Aizuji for Blockchain-Driven Leasing Innovation

Qian Xun Technology Limited, a company incorporated in the Cayman Islands, has announced a strategic cooperation with Shenzhen Aizuji Technology Co., Ltd., a domestic leasing platform. This partnership aims to develop a pioneering product in the mobile phones and tablets leasing sector, utilizing RWA and blockchain technology for ‘3C Leasing Asset Tokenization’. This initiative is expected to enhance Qian Xun’s market positioning in the RWA and stablecoin sectors, offering new business growth opportunities and improving the liquidity and value discovery of traditional leased assets.

Qian Xun Technology Partners with Roofer Securities for Fintech Expansion

Qian Xun Technology Limited has entered into a strategic collaboration with Roofer Securities to explore opportunities in the virtual asset trading market and the tokenization of Real World Assets (RWA). This partnership aims to leverage both companies’ strengths to apply for virtual asset trading licenses, innovate RWA business models, and introduce stablecoins for settlement and payment, enhancing their market influence and operational efficiency in Hong Kong’s evolving fintech landscape.

Ruicheng Media Group Updates Board Nomination Committee Terms

Ruicheng (China) Media Group Limited has revised the terms of reference for the Nomination Committee of its Board of Directors, initially adopted in 2019. The updated terms emphasize the inclusion of independent non-executive directors and gender diversity within the committee, reflecting a commitment to governance and inclusivity.

Qian Xun Technology Limited Successfully Concludes AGM with Unanimous Shareholder Support

Qian Xun Technology Limited announced the successful conclusion of its annual general meeting held on June 25, 2025, where all proposed resolutions were passed unanimously by shareholders. The meeting included the re-election of several directors, the appointment of a new executive director, and the re-appointment of the company’s auditor. Additionally, general mandates were granted to the board for share issuance and buyback, reflecting a strong consensus among shareholders and potentially enhancing the company’s strategic flexibility.