XUNCE's stock experienced a significant intraday decline of 5.19%, marking a sharp reversal from its recent meteoric rise. The company, which had seen its share price surge over 600% since listing and recently surpassed a HK$100 billion market capitalization, faced selling pressure during Tuesday's trading session.
The price correction appears driven by fundamental concerns highlighted in recent reports. Despite reporting doubled revenue in 2025, XUNCE remained in a loss-making position with a net loss of RMB 130 million, which was larger than the previous year's loss of RMB 98 million. Additionally, the company's comprehensive gross profit margin declined from 76.68% to 61.66%, raising questions about its profitability trajectory amid rapid expansion.
Market sentiment was further affected by news of insider selling, with Jinyong Investment disposing of its entire XUNCE shareholding through on-market transactions. The company's continued losses despite revenue growth, combined with declining margins and shareholder exits, prompted investors to reassess the sustainability of XUNCE's recent valuation gains.
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