WELLCELL H-NEW (2477.HK) experienced a sharp decline in its share price, plummeting over 84% intraday to HKD 0.76. The price reached its lowest level since January 2025, with the trading volume surging to nearly HKD 3.6 billion so far.
The company had previously announced its intention to implement a 1-for-4 share split. Following the effective date of the share subdivision, the company's authorized share capital will be HKD 10 million, divided into 8 billion subdivided shares, of which 4 billion subdivided shares will be issued and fully paid up or credited as fully paid. The share subdivision is set to take effect on Tuesday, April 21, 2026.
WELLCELL H-NEW listed on the Main Board of the Hong Kong Stock Exchange in January 2024. Its primary business operations include wireless telecommunications network optimization, ICT integration services, and fintech. In March of this year, the company was included in the Hang Seng Composite Index, and on May 6, it was officially added to the list of securities eligible for Southbound Stock Connect, having been included for less than 20 days. Previously, driven by expectations of Stock Connect inclusion and blockchain payment concepts, the company's share price surged significantly from March 10, reaching a historical high of HKD 13.63 on April 21.
On March 25, the company announced the implementation of a 1-for-4 share split plan, which officially took effect on April 21. Although the share price briefly rose after the split, it subsequently experienced a continuous decline. On May 11, the company announced a change in the use of its IPO proceeds, reallocating HKD 11 million originally planned for expanding the project management team to ICT project working capital and bank loan repayments.
Just last week (May 15), WELLCELL H-NEW (02477) announced that, leveraging its existing technological capabilities in ICT communication services, wireless network optimization, and the FoPay payment platform, the group has decided to initiate an artificial intelligence strategy upgrade, extending its business into the computing power services sector within AI infrastructure. However, investor reaction was cautious, with the company's share price falling 15% that day.
From a fundamental perspective, the company's total operating revenue for the full year 2025 was CNY 219 million, a year-on-year decrease of 21.46%. Net profit attributable to shareholders was CNY 15.336 million, down 23.85% compared to the previous year.
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