New Risk • May 08
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 299% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (25% average weekly change). Earnings have declined by 41% per year over the past 5 years. Shareholders have been substantially diluted in the past year (299% increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Reported Earnings • Apr 01
Full year 2025 earnings released: EPS: CN¥0.014 (vs CN¥0.029 loss in FY 2024) Full year 2025 results: EPS: CN¥0.014 (up from CN¥0.029 loss in FY 2024). Revenue: CN¥521.3m (up 70% from FY 2024). Net income: CN¥37.0m (up CN¥111.8m from FY 2024). Profit margin: 7.1% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 51 percentage points per year, which is a significant difference in performance. Announcement • Mar 31
7Road Holdings Limited, Annual General Meeting, May 26, 2026 7Road Holdings Limited, Annual General Meeting, May 26, 2026. Announcement • Mar 16
7Road Holdings Limited to Report Fiscal Year 2025 Results on Mar 30, 2026 7Road Holdings Limited announced that they will report fiscal year 2025 results on Mar 30, 2026 New Risk • Mar 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 36% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). New Risk • Dec 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Hong Kong stocks, typically moving 14% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (14% average weekly change). Earnings have declined by 36% per year over the past 5 years. Reported Earnings • Sep 02
First half 2025 earnings released: EPS: CN¥0.011 (vs CN¥0.004 loss in 1H 2024) First half 2025 results: EPS: CN¥0.011 (up from CN¥0.004 loss in 1H 2024). Revenue: CN¥176.4m (up 27% from 1H 2024). Net income: CN¥27.1m (up CN¥36.2m from 1H 2024). Profit margin: 15% (up from net loss in 1H 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Announcement • Aug 18
7Road Holdings Limited to Report First Half, 2025 Results on Aug 28, 2025 7Road Holdings Limited announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • Jun 16
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Hong Kong stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Earnings have declined by 27% per year over the past 5 years. Reported Earnings • Apr 19
Full year 2024 earnings released: CN¥0.029 loss per share (vs CN¥0.057 loss in FY 2023) Full year 2024 results: CN¥0.029 loss per share (improved from CN¥0.057 loss in FY 2023). Revenue: CN¥306.4m (down 51% from FY 2023). Net loss: CN¥74.7m (loss narrowed 49% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 38 percentage points per year, which is a significant difference in performance. New Risk • Apr 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$757.1m (US$97.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 29% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (HK$757.1m market cap, or US$97.5m). Reported Earnings • Mar 30
Full year 2024 earnings released: CN¥0.029 loss per share (vs CN¥0.057 loss in FY 2023) Full year 2024 results: CN¥0.029 loss per share (improved from CN¥0.057 loss in FY 2023). Revenue: CN¥306.4m (down 51% from FY 2023). Net loss: CN¥74.7m (loss narrowed 49% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 42 percentage points per year, which is a significant difference in performance. Announcement • Mar 29
7Road Holdings Limited, Annual General Meeting, May 20, 2025 7Road Holdings Limited, Annual General Meeting, May 20, 2025. Announcement • Mar 18
7Road Holdings Limited to Report Fiscal Year 2024 Results on Mar 28, 2025 7Road Holdings Limited announced that they will report fiscal year 2024 results on Mar 28, 2025 Board Change • Jan 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. Independent Non-Executive Director Chi Ho Lui was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Sep 26
First half 2024 earnings released: CN¥0.004 loss per share (vs CN¥0.059 profit in 1H 2023) First half 2024 results: CN¥0.004 loss per share (down from CN¥0.059 profit in 1H 2023). Revenue: CN¥139.4m (down 62% from 1H 2023). Net loss: CN¥9.09m (down 106% from profit in 1H 2023). Announcement • Aug 20
7Road Holdings Limited to Report First Half, 2024 Results on Aug 29, 2024 7Road Holdings Limited announced that they will report first half, 2024 results on Aug 29, 2024 New Risk • Jun 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Mar 29
7Road Holdings Limited, Annual General Meeting, May 28, 2024 7Road Holdings Limited, Annual General Meeting, May 28, 2024. Reported Earnings • Mar 29
Full year 2023 earnings released: CN¥0.057 loss per share (vs CN¥0.11 profit in FY 2022) Full year 2023 results: CN¥0.057 loss per share (down from CN¥0.11 profit in FY 2022). Revenue: CN¥627.7m (up 16% from FY 2022). Net loss: CN¥146.5m (down 152% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 3% per year. Announcement • Mar 19
7Road Holdings Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 7Road Holdings Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$2.05, the stock trades at a trailing P/E ratio of 30.1x. Average trailing P/E is 22x in the Entertainment industry in Hong Kong. Total loss to shareholders of 18% over the past three years. Announcement • Mar 09
7Road Holdings Limited Announces Change of Chief Executive Officer The board of directors of 7Road Holdings Limited hereby announced that Mr. Peng Cheng ("Mr. Peng") has resigned as chief executive officer of the Company with effect from March 8, 2024 due to career planning reasons. In contemplation of Mr. Peng's resignation, the Board announced that Mr. Liu Zhizhen ("Mr. Liu") has been appointed as the chief executive officer of the Company, which will take effect from March 8, 2024. Mr. Liu Zhizhen, aged 41, joined the Group in September 2019 and was mainly responsible for managing the Group's research and development ("R&D"). In September 2022, Mr. Liu was appointed as the vice president of the Company and began participating in the overall management of the Group. Before and after joining the Group, Mr. Liu's background in the R&D of games was extensive with over 20 years of experience. He has served as a game producer and R&D leader in a number of large and well-known gaming companies, has led the R&D and team management of multiple types of gaming projects and achieved excellent performance results. From April 2005 to July 2006, Mr. Liu was a gaming project planner at Netstar Square Enix Network Technology (Beijing) Co. Ltd. From August 2006 to September 2007, Mr. Liu was the chief gaming project planner and assistant producer at Beijing Guoji Chuanshi Network Technology Co. Ltd. From November 2007 to September 2011, Mr. Liu was a producer in the gaming division of Beijing Wuzhou Zongheng Sports Development Co. Ltd., and from September 2011 to August 2019, he was a producer of games at Giant Network Group Co. Ltd. a company listed on the Shenzhen Stock Exchange. Since September 2007, Mr. Liu has been an external lecturer at the Academy of Arts & Design of Tsinghua University in the People's Republic of China ("PRC"). In May 2022, he was appointed as an expert tutor at the Art and Technology Innovation Base of Tsinghua University in the PRC. Announcement • Mar 08
7Road Holdings Limited Announces the Resignation of Peng Cheng as Executive Director The board of directors of 7Road Holdings Limited hereby announced that Mr. Peng Cheng (Mr. Peng) has resigned as an executive Director of the Company with effect from March 8, 2024 due to career planning reasons. Valuation Update With 7 Day Price Move • Dec 27
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$2.55, the stock trades at a trailing P/E ratio of 37.2x. Average trailing P/E is 19x in the Entertainment industry in Hong Kong. Negligible returns to shareholders over past three years. Reported Earnings • Aug 31
First half 2023 earnings released: EPS: CN¥0.051 (vs CN¥0.093 in 1H 2022) First half 2023 results: EPS: CN¥0.051 (down from CN¥0.093 in 1H 2022). Revenue: CN¥443.7m (up 117% from 1H 2022). Net income: CN¥130.5m (down 46% from 1H 2022). Profit margin: 29% (down from 118% in 1H 2022). Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. New Risk • Aug 30
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 22% Last year net profit margin: 59% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (22% net profit margin). Announcement • Aug 18
7Road Holdings Limited to Report First Half, 2023 Results on Aug 29, 2023 7Road Holdings Limited announced that they will report first half, 2023 results on Aug 29, 2023 Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to HK$2.90, the stock trades at a trailing P/E ratio of 26.1x. Average trailing P/E is 23x in the Entertainment industry in Hong Kong. Total returns to shareholders of 12% over the past year. Announcement • May 24
7Road Holdings Limited Elects Ms. Chen Siyuan as A Non-Executive Director of the Company 7Road Holdings Limited announced that at its Annual General Meeting held on 23 May 2023, elected Ms. Chen Siyuan as a non-executive director of the Company. Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: CN¥0.11 (vs CN¥0.037 in FY 2021) Full year 2022 results: EPS: CN¥0.11 (up from CN¥0.037 in FY 2021). Revenue: CN¥540.6m (up 29% from FY 2021). Net income: CN¥282.5m (up 200% from FY 2021). Profit margin: 52% (up from 22% in FY 2021). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Board Change • Mar 11
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Chi Ho Lui was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Sep 01
First half 2022 earnings released: EPS: CN¥0.093 (vs CN¥0.012 in 1H 2021) First half 2022 results: EPS: CN¥0.093 (up from CN¥0.012 in 1H 2021). Revenue: CN¥204.5m (up 87% from 1H 2021). Net income: CN¥240.4m (up CN¥209.9m from 1H 2021). Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Aug 18
7Road Holdings Limited to Report First Half, 2022 Results on Aug 30, 2022 7Road Holdings Limited announced that they will report first half, 2022 results on Aug 30, 2022 Announcement • Aug 16
7Road Holdings Limited Provides Unaudited Consolidated Earnings Guidance for the Six Months Ended June 30, 2022 7Road Holdings Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2022. The Group is expected to record a profit attributable to the Shareholders of approximately RMB 240 million, representing an increase of approximately 687% as compared to a profit attributable to the Shareholders of RMB 30.50 million for the six months ended 30 June 2021. Reported Earnings • Mar 13
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: CN¥420.5m (flat on FY 2020). Net income: CN¥94.2m (up 16% from FY 2020). Profit margin: 22% (up from 19% in FY 2020). Revenue was in line with analyst estimates. Announcement • Mar 03
7Road Holdings Limited to Report Fiscal Year 2021 Results on Mar 11, 2022 7Road Holdings Limited announced that they will report fiscal year 2021 results on Mar 11, 2022 Executive Departure • Dec 03
Independent Non-Executive Director Ying Wang has left the company On the 1st of December, Ying Wang's tenure as Independent Non-Executive Director ended after 2.3 years in the role. We don't have any record of a personal shareholding under Ying's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 3.46 years. Board Change • Oct 11
High number of new directors Independent Non-Executive Director Yiqing Li was the last director to join the board, commencing their role in 2019. 
