Shares of ZHONGSHENJIANYE (02503.HK) experienced a dramatic sell-off in early trading on Friday, plummeting by 75.13% to reach a historic low. The stock's sharp decline comes on the heels of the company's recently released interim results for 2025, which revealed a significant drop in revenue and a turn to loss.
According to the company's financial report, ZHONGSHENJIANYE's revenue for the first half of 2025 fell by 46.9% year-on-year to HK$201 million. The construction services provider also reported a loss attributable to owners of HK$11.81 million, compared to a profit of HK$0.335 million in the same period last year. The company attributed the revenue decline primarily to fewer construction projects undertaken during the period.
The severe stock price drop is particularly notable as it follows six consecutive trading sessions of gains, during which the stock had accumulated an increase of approximately 70%. This sudden reversal suggests that investors are reassessing the company's value in light of its deteriorating financial performance. As a general contractor specializing in building engineering, municipal public works, and foundation engineering, ZHONGSHENJIANYE's results may also reflect broader challenges in the construction sector. Trading volume reached HK$117 million, indicating significant investor activity and potential panic selling in response to the disappointing financial results.
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