QUANTGROUP (02685.HK) saw its stock price under pressure again on April 30, dropping more than 9.7% during the session. By the close, the share price had fallen 6.18% to HK$16.69, reducing the company's market capitalization to HK$8.597 billion. Over the past three months, QUANTGROUP's stock has declined by more than 49%. Despite significant volatility since its listing, the stock still shows a cumulative gain of over 70%.

This marks the fourth consecutive trading day of declines for QUANTGROUP. Market feedback suggests the correction stems from a combination of regulatory pressure, controversy over its business model, and valuation adjustments rather than a single factor. On March 13, the National Financial Regulatory Authority explicitly criticized违规 practices involving disguised lending through shopping installments and cash-back schemes.

QUANTGROUP's "Yang Xiao Mie" mall operates in a manner highly similar to the described practices, quickly drawing regulatory scrutiny. Currently, Yang Xiao Mie represents QUANTGROUP's core revenue source. In 2025, the company reported revenue of approximately RMB 1.035 billion, up 4.21% year-on-year, with net profit rising 32.64% to around RMB 195 million. Revenue from Yang Xiao Mie alone reached about RMB 1.024 billion, accounting for 99.00% of total revenue and growing 10.74% from the previous year.

QUANTGROUP also disclosed that Yang Xiao Mie's GMV exceeded RMB 10 billion in 2025, a 30.59% increase. After three consecutive years of profitability following losses in 2022, the company's financial performance has improved notably. QUANTGROUP attributed the GMV growth to sustained investment in online platforms, particularly new media channels. Meanwhile, the company's gross profit margin stood at 95.4% in 2025, down 1.46 percentage points from the prior year.

Notably, QUANTGROUP's former key revenue source—financial institution matching services—was discontinued in July 2024. This business, which matched borrowers seeking consumer credit with financial institutions, contributed RMB 32.044 million in revenue in 2024 but generated nothing in 2025. Although the company has downplayed its financial services in reports, external doubts about its ties with financial institutions persist.

Last month, an investigation revealed that Yang Xiao Mie’s mall is embedded within the Bian Li Ka Bao loan app, allowing users to obtain cash through recycling agents without physically receiving goods, effectively enabling shopping-based cash advances. Journalists testing the app found that clicking the mall entry in Bian Li Ka Bao directly redirected users to Yang Xiao Mie, creating a closed traffic loop.

When questioned, Yang Xiao Mie’s customer service stated that the two platforms cooperate, with Bian Li Ka Bao acting as a credit provider for the mall. However, QUANTGROUP has previously denied partnering with any third-party recycling platforms, calling such activities unauthorized. On the Black Cat Complaint platform, over 24,500 complaints have been filed against Yang Xiao Mie, primarily concerning inflated product prices,诱导 excessive spending, and high interest rates.

Originally, Yang Xiao Mie was not an e-commerce platform but a lending facilitation product named Credit Wallet, aimed at helping financial institutions acquire customers. In November 2020, QUANTGROUP rebranded it as Yang Xiao Mie, repositioning it as a consumer-centric digital transaction platform. The name change reflects the company's shift from loan facilitation to consumer e-commerce. QUANTGROUP finally went public on the Hong Kong Stock Exchange's main board on November 27, 2025, ending an 11-year listing journey. The IPO price was set at HK$9.80, raising HK$131 million in total, though net proceeds after listing expenses were only HK$12.37 million.