Qingdao AInnovation Technology Group Co., Ltd. (HKG:2121) Is Expected To Breakeven In The Near Future

Qingdao AInnovation Technology Group Co., Ltd. (HKG:2121) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Qingdao AInnovation Technology Group Co., Ltd., together with its subsidiaries, engages in the research, development, and sale of artificial intelligence based software and hardware technology solutions in China. The HK$4.3b market-cap company’s loss lessened since it announced a CN¥363m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥325m, as it approaches breakeven. The most pressing concern for investors is Qingdao AInnovation Technology Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Qingdao AInnovation Technology Group

Qingdao AInnovation Technology Group is bordering on breakeven, according to the 3 Hong Kong Software analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥134m in 2025. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 85%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Qingdao AInnovation Technology Group's growth isn’t the focus of this broad overview, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 4.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Qingdao AInnovation Technology Group, so if you are interested in understanding the company at a deeper level, take a look at Qingdao AInnovation Technology Group's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Historical Track Record: What has Qingdao AInnovation Technology Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Qingdao AInnovation Technology Group's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.