New Risk • May 29
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 Chinese stocks, typically moving 8.6% 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 39% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (8.6% average weekly change). Reported Earnings • Apr 15
First quarter 2026 earnings released: EPS: CN¥0.06 (vs CN¥0.041 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.06 (up from CN¥0.041 in 1Q 2025). Revenue: CN¥80.0m (up 9.4% from 1Q 2025). Net income: CN¥6.49m (up 57% from 1Q 2025). Profit margin: 8.1% (up from 5.7% in 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 84 percentage points per year, which is a significant difference in performance. Announcement • Apr 15
Shanghai Hollywave Electronic System Co., Ltd., Annual General Meeting, May 06, 2026 Shanghai Hollywave Electronic System Co., Ltd., Annual General Meeting, May 06, 2026, at 14:30 China Standard Time. Location: 2F, Building 1, No. 498, Guoshoujing Road, Pudong New Area, Shanghai China Announcement • Mar 30
Shanghai Hollywave Electronic System Co., Ltd. to Report Q1, 2026 Results on Apr 15, 2026 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report Q1, 2026 results on Apr 15, 2026 Reported Earnings • Mar 05
Full year 2025 earnings released: CN¥0.22 loss per share (vs CN¥0.14 profit in FY 2024) Full year 2025 results: CN¥0.22 loss per share (down from CN¥0.14 profit in FY 2024). Revenue: CN¥303.0m (up 13% from FY 2024). Net loss: CN¥22.5m (down 256% from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Announcement • Dec 26
Shanghai Hollywave Electronic System Co., Ltd. to Report Fiscal Year 2025 Results on Apr 15, 2026 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report fiscal year 2025 results on Apr 15, 2026 New Risk • Dec 10
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 Chinese stocks, typically moving 8.3% 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 26% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.3% average weekly change). Large one-off items impacting financial results. Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: CN¥0.067 (vs CN¥0.044 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.067 (up from CN¥0.044 in 3Q 2024). Revenue: CN¥112.8m (up 76% from 3Q 2024). Net income: CN¥6.70m (up 60% from 3Q 2024). Profit margin: 5.9% (down from 6.5% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Shanghai Hollywave Electronic System Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 New Risk • Sep 04
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: 3.5% Last year net profit margin: 5.7% 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: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 120% Paying a dividend despite having no free cash flows. Earnings have declined by 25% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.5% net profit margin). Announcement • Jun 30
Shanghai Hollywave Electronic System Co., Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • May 14
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 Chinese stocks, typically moving 8.7% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 120% Paying a dividend despite having no free cash flows. Earnings have declined by 22% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.7% average weekly change). Large one-off items impacting financial results. New Risk • Apr 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 79% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 140% Paying a dividend despite having no free cash flows. Earnings have declined by 14% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Reported Earnings • Apr 11
Full year 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.37 in FY 2023) Full year 2024 results: EPS: CN¥0.20 (down from CN¥0.37 in FY 2023). Revenue: CN¥269.1m (down 32% from FY 2023). Net income: CN¥14.4m (down 47% from FY 2023). Profit margin: 5.4% (down from 6.9% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Apr 11
Shanghai Hollywave Electronic System Co., Ltd., Annual General Meeting, May 06, 2025 Shanghai Hollywave Electronic System Co., Ltd., Annual General Meeting, May 06, 2025, at 14:30 China Standard Time. Location: 2F, Building 1, No. 498, Guoshoujing Road, Pudong New Area, Shanghai China New Risk • Apr 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 Chinese stocks, typically moving 7.9% 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 14% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.9% average weekly change). New Risk • Apr 07
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 14% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Mar 28
Shanghai Hollywave Electronic System Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Reported Earnings • Mar 02
Full year 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.37 in FY 2023) Full year 2024 results: EPS: CN¥0.20 (down from CN¥0.37 in FY 2023). Revenue: CN¥269.0m (down 32% from FY 2023). Net income: CN¥14.5m (down 47% from FY 2023). Profit margin: 5.4% (down from 6.9% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Dec 27
Shanghai Hollywave Electronic System Co., Ltd. to Report Fiscal Year 2024 Results on Mar 20, 2025 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report fiscal year 2024 results on Mar 20, 2025 Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.062 (vs CN¥0.097 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.062 (down from CN¥0.097 in 3Q 2023). Revenue: CN¥64.0m (down 30% from 3Q 2023). Net income: CN¥4.19m (down 41% from 3Q 2023). Profit margin: 6.5% (down from 7.8% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Shanghai Hollywave Electronic System Co., Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 Announcement • Jun 29
Shanghai Hollywave Electronic System Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 Reported Earnings • Apr 24
First quarter 2024 earnings released: EPS: CN¥0.024 (vs CN¥0.058 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.024 (down from CN¥0.058 in 1Q 2023). Revenue: CN¥59.3m (down 22% from 1Q 2023). Net income: CN¥1.72m (down 59% from 1Q 2023). Profit margin: 2.9% (down from 5.5% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Apr 23
Shanghai Hollywave Electronic System Co., Ltd., Annual General Meeting, May 13, 2024 Shanghai Hollywave Electronic System Co., Ltd., Annual General Meeting, May 13, 2024, at 14:30 China Standard Time. Location: 2F, Building 1, No. 498, Guoshoujing Road, Pudong New Area, Shanghai China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to CN¥23.25, the stock trades at a trailing P/E ratio of 61.6x. Average trailing P/E is 65x in the Software industry in China. Total loss to shareholders of 55% over the past three years. Announcement • Mar 30
Shanghai Hollywave Electronic System Co., Ltd. to Report Q1, 2024 Results on Apr 23, 2024 Shanghai Hollywave Electronic System Co., Ltd. announced that they will report Q1, 2024 results on Apr 23, 2024 Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥27.97, the stock trades at a trailing P/E ratio of 74.1x. Average trailing P/E is 77x in the Software industry in China. Total loss to shareholders of 62% over the past year. Reported Earnings • Feb 27
Full year 2023 earnings released: EPS: CN¥0.38 (vs CN¥0.69 in FY 2022) Full year 2023 results: EPS: CN¥0.38 (down from CN¥0.69 in FY 2022). Revenue: CN¥394.1m (up 17% from FY 2022). Net income: CN¥27.4m (down 46% from FY 2022). Profit margin: 7.0% (down from 15% in FY 2022). The decrease in margin was driven by higher expenses. New Risk • Feb 05
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 Chinese stocks, typically moving 6.6% 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 High level of non-cash earnings (39% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.6% average weekly change). Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥30.73, the stock trades at a trailing P/E ratio of 45.1x. Average trailing P/E is 62x in the Software industry in China. Total loss to shareholders of 48% over the past year. Reported Earnings • Aug 26
Second quarter 2023 earnings released: EPS: CN¥0.23 (vs CN¥0.078 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.23 (up from CN¥0.078 in 2Q 2022). Revenue: CN¥58.1m (up 3.9% from 2Q 2022). Net income: CN¥7.25m (up 18% from 2Q 2022). Profit margin: 13% (up from 11% in 2Q 2022). Revenue is forecast to grow 33% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Software industry in China. Buying Opportunity • May 31
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be CN¥110, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last year. Earnings per share has declined by 14%. Revenue is forecast to grow by 98% in 2 years. Earnings is forecast to grow by 144% in the next 2 years. Reported Earnings • Apr 26
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.97 (down from CN¥1.29 in FY 2021). Revenue: CN¥336.2m (up 2.0% from FY 2021). Net income: CN¥50.4m (down 17% from FY 2021). Profit margin: 15% (down from 19% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 28%. Earnings per share (EPS) also missed analyst estimates by 42%. Reported Earnings • Mar 02
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥1.07 (down from CN¥1.29 in FY 2021). Revenue: CN¥336.2m (up 2.0% from FY 2021). Net income: CN¥50.3m (down 18% from FY 2021). Profit margin: 15% (down from 19% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 28%. Earnings per share (EPS) also missed analyst estimates by 36%. Revenue is forecast to grow 42% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Software industry in China. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.20 (vs CN¥0.21 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.20 (down from CN¥0.21 in 3Q 2021). Revenue: CN¥83.1m (up 21% from 3Q 2021). Net income: CN¥10.4m (down 5.0% from 3Q 2021). Profit margin: 13% (down from 16% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 35% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Buying Opportunity • Oct 18
Now 21% undervalued Over the last 90 days, the stock is up 5.1%. The fair value is estimated to be CN¥107, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 39% over the last year. Earnings per share has grown by 2.7%. Revenue is forecast to grow by 111% in 2 years. Earnings is forecast to grow by 129% in the next 2 years. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥88.90, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 28x in the Software industry in China. Total returns to shareholders of 4.2% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥107 per share. Reported Earnings • May 02
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: CN¥0.08 (down from CN¥0.16 in 1Q 2021). Revenue: CN¥54.3m (up 21% from 1Q 2021). Net income: CN¥2.81m (down 35% from 1Q 2021). Profit margin: 5.2% (down from 9.7% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 3.5%. Over the next year, revenue is forecast to grow 44%, compared to a 33% growth forecast for the industry in China. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.29 (vs CN¥0.70 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥68.7m (down 17% from 3Q 2020). Net income: CN¥11.0m (down 43% from 3Q 2020). Profit margin: 16% (down from 23% in 3Q 2020). The decrease in margin was driven by lower revenue. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥102, the stock trades at a trailing P/E ratio of 62x. Average trailing P/E is 53x in the Software industry in China. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥94.18, the stock trades at a trailing P/E ratio of 57.2x. Average trailing P/E is 51x in the Software industry in China.