QUANTGROUP (02685.HK) saw its stock price under renewed pressure on April 30, dropping more than 9.7% during the trading session.
By the market close, the share price had fallen to HK$16.69, a single-day decline of 6.18%, reducing the company's total market capitalization to HK$8.597 billion.
Over the past three months, QUANTGROUP's stock has fallen by more than 49% cumulatively. Since its initial public offering, despite significant price volatility, the stock still shows a gain of over 70% for the period.
Notably, this marks the fourth consecutive trading day of decline for the stock. Market feedback suggests this round of price correction is not due to a single factor, but rather a confluence of regulatory pressure, controversy over its business model, and a reassessment of its valuation.
On March 13, the National Financial Regulatory Administration issued a statement explicitly identifying "installment shopping and cash-out recycling" as违规 practices constituting disguised lending.
As the operational model of QUANTGROUP's "Yang Xiaomie" mall bears a strong resemblance to the described activities, market participants quickly linked the regulatory scrutiny to the company. Currently, "Yang Xiaomie" has become QUANTGROUP's most critical source of revenue.
In 2025, QUANTGROUP reported revenue of approximately RMB 1.035 billion, a year-on-year increase of about 4.21%. Its corresponding net profit was approximately RMB 195 million, up about 32.64% year-on-year. Revenue from Yang Xiaomie in 2025 amounted to roughly RMB 1.024 billion, an increase of about 10.74% from the previous year, accounting for a significant 99.00% of the company's total revenue.
QUANTGROUP also disclosed that the Gross Merchandise Volume (GMV) on the Yang Xiaomie platform surpassed RMB 10 billion in 2025, growing by 30.59% year-on-year. Compared to its loss-making status in 2022, the company's financial performance has shown considerable improvement after three consecutive years of profitability.
QUANTGROUP attributed the substantial growth in Yang Xiaomie's GMV primarily to its continuous investment in traffic acquisition across various online platforms, particularly new media channels. Concurrently, the company's gross profit margin for 2025 remained high at 95.4%, though it decreased by 1.46 percentage points compared to the previous year.
More notably, the company's formerly important revenue source—financial institution matching services—was discontinued in July 2024. This business essentially involved matching borrowers with consumer credit needs to financial institutions. In 2024, this segment contributed RMB 32.044 million in revenue, but it dropped to zero in 2025.
However, despite the company downplaying its financial-related businesses in its financial reports, external skepticism regarding its connections with financial institutions has not dissipated. Last month, an investigation reportedly found that the Yang Xiaomie mall was embedded within the "Bianli Kabao" loan app, allowing users to achieve "cash-out upon purchase" through recyclers without actually receiving the goods, according to a media report.
The investigation reportedly demonstrated that after logging into the Bianli Kabao app, users could click a "Mall" entry to be directly redirected to the Yang Xiaomie platform, creating a closed traffic loop.
When questioned repeatedly about the relationship between the two entities, customer service for the Yang Xiaomie platform described them as cooperative partners, stating that "Bianli Kabao is the quota provider offering shopping credit limits to users and is a third party cooperating with the mall."
However, QUANTGROUP has previously stated that the company has never engaged in recycling cooperation with any third-party recycling platforms or merchants, and that related activities in the market are conducted illegally by third parties misusing its name.
On the Black Cat Complaint platform, complaints related to "Yang Xiaomie" exceed 24,500. These complaints primarily focus on issues such as product prices being significantly higher than market rates,诱导 excessive spending, and relatively high interest charges.
In fact, the predecessor of Yang Xiaomie was not an e-commerce platform but a lending facilitation product named "Credit Wallet," which primarily provided precise customer acquisition services for financial institutions. In November 2020, QUANTGROUP rebranded it as "Yang Xiaomie," repositioning it as a consumer-centric digital transaction enablement platform.
The name change from "Credit Wallet" to "Yang Xiaomie" reflects the company's strategic shift from lending facilitation to consumer e-commerce. On November 27, 2025, QUANTGROUP successfully listed on the main board of the Hong Kong Stock Exchange, concluding an 11-year journey to go public.
The company's IPO issue price was HK$9.8, with total proceeds of HK$131 million. However, after deducting listing expenses, the net proceeds raised were only HK$12.37 million.
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