New Risk • Apr 23
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 48% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 27
Full year 2025 earnings released: EPS: CN¥0.18 (vs CN¥0.074 in FY 2024) Full year 2025 results: EPS: CN¥0.18 (up from CN¥0.074 in FY 2024). Revenue: CN¥456.1m (down 27% from FY 2024). Net income: CN¥121.7m (up 138% from FY 2024). Profit margin: 27% (up from 8.1% in FY 2024). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Announcement • Mar 26
Qingci Games Inc., Annual General Meeting, Jun 09, 2026 Qingci Games Inc., Annual General Meeting, Jun 09, 2026. Buy Or Sell Opportunity • Mar 24
Now 26% overvalued Over the last 90 days, the stock has fallen 4.5% to HK$2.96. The fair value is estimated to be HK$2.35, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Announcement • Mar 16
Qingci Games Inc. to Report Fiscal Year 2025 Results on Mar 26, 2026 Qingci Games Inc. announced that they will report fiscal year 2025 results on Mar 26, 2026 Buy Or Sell Opportunity • Jan 28
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to HK$2.87. The fair value is estimated to be HK$2.37, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to HK$3.10, the stock trades at a trailing P/E ratio of 25.4x. Average trailing P/E is 14x in the Entertainment industry in Hong Kong. Total loss to shareholders of 35% over the past three years. Buy Or Sell Opportunity • Dec 22
Now 30% overvalued Over the last 90 days, the stock has fallen 15% to HK$2.98. The fair value is estimated to be HK$2.28, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. New Risk • Nov 06
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 10% 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: Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$2.94, the stock trades at a trailing P/E ratio of 24.4x. Average trailing P/E is 18x in the Entertainment industry in Hong Kong. Total loss to shareholders of 47% over the past three years. Buy Or Sell Opportunity • Oct 27
Now 20% overvalued Over the last 90 days, the stock has fallen 20% to HK$2.71. The fair value is estimated to be HK$2.26, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$2.71, the stock trades at a trailing P/E ratio of 22.5x. Average trailing P/E is 19x in the Entertainment industry in Hong Kong. Total loss to shareholders of 56% over the past three years. Reported Earnings • Aug 28
First half 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.065 in 1H 2024) First half 2025 results: EPS: CN¥0.10 (up from CN¥0.065 in 1H 2024). Revenue: CN¥247.2m (down 28% from 1H 2024). Net income: CN¥70.3m (up 56% from 1H 2024). Profit margin: 28% (up from 13% in 1H 2024). Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$4.00, the stock trades at a trailing P/E ratio of 49.7x. Average trailing P/E is 18x in the Entertainment industry in Hong Kong. Total loss to shareholders of 16% over the past three years. Announcement • Aug 15
Qingci Games Inc. to Report First Half, 2025 Results on Aug 27, 2025 Qingci Games Inc. announced that they will report first half, 2025 results on Aug 27, 2025 Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to HK$3.89, the stock trades at a trailing P/E ratio of 48.1x. Average trailing P/E is 19x in the Entertainment industry in Hong Kong. Total loss to shareholders of 2.3% over the past three years. Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to HK$3.48, the stock trades at a trailing P/E ratio of 43.1x. Average trailing P/E is 18x in the Entertainment industry in Hong Kong. Total loss to shareholders of 17% over the past three years. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$3.22, the stock trades at a trailing P/E ratio of 40.8x. Average trailing P/E is 16x in the Entertainment industry in Hong Kong. Total loss to shareholders of 24% over the past three years. Reported Earnings • Mar 30
Full year 2024 earnings released: EPS: CN¥0.074 (vs CN¥0.054 loss in FY 2023) Full year 2024 results: EPS: CN¥0.074 (up from CN¥0.054 loss in FY 2023). Revenue: CN¥628.0m (down 31% from FY 2023). Net income: CN¥51.1m (up CN¥88.5m from FY 2023). Profit margin: 8.1% (up from net loss in FY 2023). Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Mar 27
Qingci Games Inc., Annual General Meeting, Jun 06, 2025 Qingci Games Inc., Annual General Meeting, Jun 06, 2025. New Risk • Mar 27
New major risk - Revenue and earnings growth Earnings have declined by 0.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.3% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). Announcement • Mar 14
Qingci Games Inc. to Report Fiscal Year 2024 Results on Mar 27, 2025 Qingci Games Inc. announced that they will report fiscal year 2024 results on Mar 27, 2025 New Risk • Feb 21
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 10% 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. Board Change • Feb 06
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Yuan Yuan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Nov 22
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Yuan Yuan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Sep 25
First half 2024 earnings released: EPS: CN¥0.065 (vs CN¥0.06 in 1H 2023) First half 2024 results: EPS: CN¥0.065 (up from CN¥0.06 in 1H 2023). Revenue: CN¥342.6m (up 2.6% from 1H 2023). Net income: CN¥45.1m (up 8.6% from 1H 2023). Profit margin: 13% (in line with 1H 2023). Revenue is forecast to grow 55% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Entertainment industry in Hong Kong. Announcement • Aug 09
Qingci Games Inc. to Report Q2, 2024 Results on Aug 22, 2024 Qingci Games Inc. announced that they will report Q2, 2024 results on Aug 22, 2024 Announcement • Mar 27
Qingci Games Inc., Annual General Meeting, Jun 06, 2024 Qingci Games Inc., Annual General Meeting, Jun 06, 2024. Reported Earnings • Mar 27
Full year 2023 earnings released: CN¥0.05 loss per share (vs CN¥0.073 profit in FY 2022) Full year 2023 results: CN¥0.05 loss per share (down from CN¥0.073 profit in FY 2022). Revenue: CN¥905.7m (up 44% from FY 2022). Net loss: CN¥37.4m (down 174% from profit in FY 2022). Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Entertainment industry in Hong Kong. Announcement • Mar 15
Qingci Games Inc. to Report Fiscal Year 2023 Results on Mar 26, 2024 Qingci Games Inc. announced that they will report fiscal year 2023 results on Mar 26, 2024 Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$4.75, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Entertainment industry in Hong Kong. Total loss to shareholders of 8.5% over the past year. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$3.90, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Entertainment industry in Hong Kong. Total loss to shareholders of 29% over the past year. Announcement • Oct 18
Qingci Games Inc. Announces Board and Committee Changes Qingci Games Inc. announced that with effect from October 17, 2023, Mr. Zhang Longgen has resigned as an independent non-executive Director in order to devote more time to other personal commitments. Accordingly, Mr. Zhang has ceased to be the chairman of the audit committee under the Board and a member of the remuneration committee under the Board. With effect from October 17, 2023, Mr. Yuan Yuan ("Mr. Yuan") has been appointed as an independent non-executive Director, the chairman of the Audit Committee and a member of the Remuneration Committee. The biographical details of Mr. Yuan are set out below. Mr. Yuan Yuan, aged 40, has about 13 years of experience in the finance and securities industry. Mr. Yuan worked at the China Securities Regulatory Commission as a postdoctoral researcher from May 2012 to March 2016. From March 2016 to July 2017, he worked at Soochow Securities Co. Ltd., serving simultaneously as the chief strategist, the executive deputy director of the research department, and a member of the internal verification committee. Subsequently, he worked at Huafu Securities Co. Ltd., serving simultaneously as the managing director, the deputy head of the investment banking business committee, and the general manager of the equities investment banking division from July 2017 to May 2020. Mr. Yuan has served as the managing director of Zhong De Securities Company Limited since May 2020. Mr. Yuan obtained a doctorate degree in accountancy from the Shanghai University of Finance and Economics in 2012 and engaged in postdoctoral research in applied economics in Tsinghua University, he possesses the relevant expertise required under Rule 3.10(2) of the Rules Governing the Listing of Securities on the Stock Exchange. Mr. Yuan is currently an independent non-executive director of China New City Commercial Development Limited and an independent director of Leo Group Co. Ltd., Xinjiang Daqo New Energy Co. Ltd. and Jiangsu Suzhou Rural Commercial Bank Co. Ltd. As a result of the resignation and appointment of Directors as disclosed above, the composition of the Audit Committee and the Remuneration Committee will be changed as follows, with effect from October 17, 2023: Audit Committee Mr. Zhang has ceased to be the chairman (and a member) of the Audit Committee and Mr. Yuan has been appointed as the chairman (and a member) of the Audit Committee. Remuneration Committee Mr. Zhang has ceased to be a member of the Remuneration Committee and Mr. Yuan has been appointed as a member of the Remuneration Committee. New Risk • Sep 23
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 73% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 25
First half 2023 earnings released: EPS: CN¥0.06 (vs CN¥0.11 loss in 1H 2022) First half 2023 results: EPS: CN¥0.06 (up from CN¥0.11 loss in 1H 2022). Revenue: CN¥333.9m (up 25% from 1H 2022). Net income: CN¥41.5m (up CN¥117.2m from 1H 2022). Profit margin: 12% (up from net loss in 1H 2022). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 40% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Entertainment industry in Hong Kong. Major Estimate Revision • Aug 13
Consensus forecasts updated The consensus outlook for fiscal year 2023 has been updated. Entertainment industry in Hong Kong expected to see average net income growth of 365% next year. Consensus price target of HK$7.46 unchanged from last update. Share price was steady at HK$5.25 over the past week. Announcement • Aug 12
Qingci Games Inc. to Report First Half, 2023 Results on Aug 24, 2023 Qingci Games Inc. announced that they will report first half, 2023 results on Aug 24, 2023 Announcement • Jun 07
Qingci Games Inc. Announces Management Changes Qingci Games Inc. announced that Ms. So Shuk Yi Betty ("Ms. So") has tendered her resignation as a joint company secretary of the Company and has ceased to act as an authorised representative of the Company under Rule 3.05 of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the process agent of the Company in Hong Kong for the purpose of accepting service of process and notices on its behalf in Hong Kong under Part 16 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) with effect from June 6, 2023. The Board further announced that Ms. Yung Mei Yee ("Ms. Yung") has been appointed as the Joint Company Secretary, Authorised Representative and Process Agent with effect from June 6, 2023. After the aforesaid changes, Mr. Zhu Chengyin ("Mr. Zhu") will continue to serve as the other Joint Company Secretary. Mr. Zhu Chengyin, aged 32, has served as a Joint Company Secretary and the director of capital markets of the Group since May 2021 and November 2020, respectively. Before joining the Group, Mr. Zhu joined China Securities Co. Ltd. in July 2015. He was a vice president of the investment banking division and he left in November 2020. Mr. Zhu received his bachelor's degree in business administration and master's degree in law from Shanghai Lixin University of Accounting and Finance and Fudan University, in July 2012 and June 2015, respectively. Mr. Zhu obtained the legal professional qualification from the Ministry of Justice of the People's Republic of China in March 2013 and qualification for sponsor representatives from the Securities Association of China in February 2020. In addition, Mr. Zhu received the certificate for passing all the required subjects of The National Uniform CPA Examination of the PRC, awarded by the Certified Public Accountant Examination Committee of the Ministry of Finance, PRC in December 2019. Ms. Yung Mei Yee is a vice president of SWCS Corporate Services Group (Hong Kong) Limited. Ms. Yung has over 20 years of experience in handling company secretarial, corporate governance and compliance affairs of listed companies. Ms. Yung has held various senior company secretarial positions in and acted as the company secretary or joint company secretary of a number of companies listed on the Hong Kong Stock Exchange. She is a fellow of The Hong Kong Chartered Governance Institute and The Chartered Governance Institute in the United Kingdom. She obtained a bachelor's degree of arts in accountancy and a master's degree of arts in language and law from the City University of Hong Kong, and a bachelor's degree of laws from the University of London. Reported Earnings • Mar 30
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: CN¥0.073 (up from CN¥0.96 loss in FY 2021). Revenue: CN¥630.4m (down 43% from FY 2021). Net income: CN¥50.3m (up CN¥418.9m from FY 2021). Profit margin: 8.0% (up from net loss in FY 2021). Revenue exceeded analyst estimates by 7.0%. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 56% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Entertainment industry in Hong Kong. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). CEO & Executive Director Zhiqiang Huang is the most experienced director on the board, commencing their role in 2021. Independent Non Executive Director Longgen Zhang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Aug 24
First half 2022 earnings released: CN¥0.11 loss per share (vs CN¥9.84 loss in 1H 2021) First half 2022 results: CN¥0.11 loss per share (up from CN¥9.84 loss in 1H 2021). Revenue: CN¥268.1m (down 65% from 1H 2021). Net loss: CN¥75.7m (loss narrowed 19% from 1H 2021). Over the next year, revenue is forecast to grow 212%, compared to a 24% growth forecast for the Entertainment industry in Hong Kong. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). CEO & Executive Director Zhiqiang Huang is the most experienced director on the board, commencing their role in 2021. Independent Non Executive Director Longgen Zhang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 23% share price gain to HK$4.44, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 7x in the Entertainment industry in Hong Kong. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment deteriorated over the past week After last week's 24% share price decline to HK$4.48, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 8x in the Entertainment industry in Hong Kong. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment deteriorated over the past week After last week's 17% share price decline to HK$6.50, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Entertainment industry in Hong Kong. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment deteriorated over the past week After last week's 17% share price decline to HK$7.65, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 8x in the Entertainment industry in Hong Kong. Announcement • Dec 17
Qingci Games Inc. has completed an IPO in the amount of HKD 952 million. Qingci Games Inc. has completed an IPO in the amount of HKD 952 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 8,500,000
Price\Range: HKD 11.2
Discount Per Security: HKD 0.35
Security Name: Shares
Security Type: Common Stock
Securities Offered: 76,500,000
Price\Range: HKD 11.2
Discount Per Security: HKD 0.35
Transaction Features: Regulation S Board Change • Dec 16
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 Longgen Zhang 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. 
