ZHAOWEI's stock plummeted 5.34% during intraday trading, marking a significant decline in its share price.
The drop is attributed to weak first-quarter fundamentals, with the company reporting a 2.74% year-over-year decrease in revenue and a 25.15% decline in net profit attributable to shareholders. Non-GAAP net profit also fell by 31.89%.
Additionally, sustained capital outflows have pressured the stock, with major institutional funds recording a net outflow exceeding RMB 71.57 million in the prior trading session. Shareholder Park Hyeon Joo further reduced holdings by 75,700 shares, lowering the stake to 5.78%.
The stock's elevated valuation, with a dynamic P/E ratio of approximately 183x, contrasts sharply with its deteriorating near-term earnings, contributing to the selloff.
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