On the morning of February 2nd, the stock price of XXF Group (HK02473) experienced a cliff-like decline.
By the midday break, XXF Group was trading at HK$3.13, plummeting by a staggering 72.54%. Its total market capitalization stood at approximately HK$4.84 billion, having lost around HK$12 billion in market value during the morning session alone.
Public information reveals that XXF Group was established in 2007, listed on the Hong Kong Stock Exchange in November 2023, and was included as a Hong Kong Stock Connect constituent in September 2025. The company's core business involves "lease-to-own" auto retail, ride-hailing vehicle operating leases, and related after-sales services. As of the time of writing, no significant negative factors specifically targeting XXF Group had emerged in public news. Concurrently, the company had not yet issued any public clarification regarding the drastic drop in its share price.
It is noteworthy that since the beginning of January, XXF Group began attracting market attention. Its share price surged from HK$7.81 on January 9th to a peak of HK$15.96 on January 22nd, representing a cumulative maximum gain of 104%.
On January 12th, XXF Group announced that its indirectly wholly-owned subsidiary, Xiyun Di Kong (Fujian) Technology Co., Ltd., had signed a memorandum of understanding with Xiamen Kuangshi Technology Co., Ltd. The agreement outlines plans to acquire a 51% stake in Kuangshi Technology through either a share purchase or a capital increase. Founded in 2020, Kuangshi Technology specializes in providing comprehensive millimeter-wave radar smart perception solutions. Its product portfolio covers chips, algorithms, modules, complete units, and system platforms, with applications in areas like intelligent driving.
The company's board of directors believes that if the potential transaction is finalized, it will aid in expanding the company's business within the intelligent driving automotive industry chain. This move is expected to enhance technological reserves and product competitiveness, thereby boosting the company's capacity for business innovation and sustainable growth, aligning with the overall interests of the company and its shareholders.
Furthermore, on December 18th of last year, XXF Group announced that its indirectly wholly-owned subsidiary, XXF Financing Lease Group Co., Ltd., had entered into a strategic cooperation agreement with Neolix Huicheng (Beijing) Technology Co., Ltd. Under this agreement, XXF Financing Lease will procure, lease, or operate unmanned vehicle products from Neolix and engage in deep business collaboration within specific regions. Additionally, XXF Financing Lease will be responsible for developing road rights, conducting tests, and applying for operational permits for unmanned vehicles in designated cities, with Neolix providing technical support.
Regarding financial data, the interim report for 2025 showed that the company achieved operating revenue of 769 million yuan and a net profit of 22.57 million yuan, representing year-on-year increases of 16.8% and 15.9%, respectively. The revenue growth was primarily attributed to significant expansion in direct auto retail business and the extension of the self-operated sales network.
The company stated that during the first half of 2025, it continued to advance its digital infrastructure and intensified efforts to penetrate lower-tier markets, further expanding its self-operated sales network. The scale of its sales network grew from 89 locations as of December 31, 2024, to 110 locations by June 30, 2025. During the reporting period, revenue from auto retail and financing businesses reached 607 million yuan, a 7.2% increase year-on-year. Revenue from auto-related services amounted to 104 million yuan, up 16.6% year-on-year. Notably, revenue from the ride-hailing vehicle operating lease business reached 96.58 million yuan, marking a 19.4% increase.
As of the time of writing, XXF Group had not released any clarification announcement regarding the unusual stock price movement, and the Hong Kong Stock Exchange had not disclosed any related regulatory developments. Market analysis suggests caution is warranted regarding the potential impact of high debt levels combined with litigation risks on the company's going concern capability. Investors are advised to monitor subsequent company announcements and changes in liquidity closely.
Comments