We feel now is a pretty good time to analyse Qingdao AInnovation Technology Group Co., Ltd.'s (HKG:2121) business as it appears the company may be on the cusp of a considerable accomplishment. 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. With the latest financial year loss of CN¥363m and a trailing-twelve-month loss of CN¥325m, the HK$4.2b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Qingdao AInnovation Technology Group will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See 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. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 85% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Qingdao AInnovation Technology Group given that this is a high-level summary, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that The company has managed its capital prudently, 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:

There are key fundamentals of Qingdao AInnovation Technology Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Qingdao AInnovation Technology Group, take a look at Qingdao AInnovation Technology Group's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

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.