Recently, the stock price of Feitian Yundong has experienced a significant decline, with a drop of 18.18%, setting a new historical low. The current market value of the company is only HKD 430 million.
Previously, Feitian Yundong was dubbed as the "number one stock in the metaverse" of the Hong Kong stock market, attracting significant attention from investors, and its stock price doubled in a short period of time. However, since the beginning of 2023, its stock price has continued to decline and the trend is not good, with a drop of more than 95% compared to the stock price peak in 2022, which can be described as a significant drop.
The company began to transform into the VR/AR content service field in 2017 and officially completed the transformation in 2019. In 2021, with the rise of the concept of the metaverse, Feitian Yundong took the opportunity to announce the construction of a metaverse ecosystem and was therefore regarded as a metaverse concept stock. But in reality, aside from the popular concept of "metaverse", Feitian Yundong is essentially just an ordinary advertising and marketing company.
In addition, the company's performance is not optimistic. The 2024 financial report shows that Feitian Yundong achieved a revenue of 995 million yuan, a year-on-year decrease of 20.0%; The continuous profitable state for many years ended in 2024, with a loss of 43.703 million yuan for the year. After adjustment, the net loss was still 30.643 million yuan, a significant decline compared to the profit of 274 million yuan in the same period last year. Poor performance may also be a factor that puts pressure on stock prices.
Recently, the company released a placement announcement stating that it will allocate 361 million shares to no less than six allottees at a price of HKD 0.201 per share. This placement is expected to raise approximately HKD 72.56 million, with a net amount of approximately HKD 71.62 million.
