Shares of SHUANGDENG (06960) have continued their decline, falling more than 6% to hit a new low of HK$6.66, setting another record low since its listing. The current price is less than half of its IPO price of HK$14.51 per share. At the time of writing, the stock was down 6.3% at HK$6.69, with a turnover of HK$2.3281 million, bringing its total market capitalization to under HK$3 billion.

The recent drop follows a company announcement forecasting a net loss of approximately RMB 20 million to RMB 30 million for the first half of this year. This marks a significant reversal from the net profit of about RMB 160 million reported for the same period last year. The shift from profit to loss is primarily attributed to several factors. The company expects to incur around RMB 80 million in taxes and related fees following a further review of certain historical tax matters, which has substantially impacted profitability. Additionally, foreign exchange losses of approximately RMB 56 million were recorded due to fluctuations in the RMB exchange rate against other currencies. Other contributing factors include adjustments to export tax rebate policies, increased costs for some key raw materials, and higher research and development expenditures.

It is noteworthy that SHUANGDENG listed on the Hong Kong Stock Exchange in August last year. Initially, it garnered significant investor interest and a valuation premium, surging over 30% on its debut, as it was labeled the "first AIDC computing power energy storage stock" and benefited from the AI computing power storage sector's momentum. However, since that initial surge, the stock has entered a prolonged phase of volatility and decline. The current share price represents a drop of more than 70% from its historical peak reached in October last year.