XUNCE's stock plummeted 5.32% during intraday trading on Wednesday, as investors reassessed the company's valuation following a significant rally.
The pullback comes after the stock had surged over 630% since its IPO, pushing its market capitalization past HK$110 billion, leading to concerns about rich valuation relative to financials. According to the company's annual report, while revenue crossed the RMB 1 billion milestone with 103.28% year-over-year growth, net losses widened to RMB 129 million from RMB 98 million in the prior year, highlighting a persistent profitability gap. Management noted the company achieved its first positive half-year adjusted net profit in the second half, but the first half recorded a loss.
On the business front, Xunce recently signed a strategic cooperation agreement with the Shenzhen Data Exchange to advance enterprise digital transformation, data asset services, and embodied intelligence data standards. Its Token-based pricing model currently contributes about 5% of revenue, with management targeting higher penetration this year.
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