Knowledge Atlas (02513) shares plummeted about% during intraday trading on Friday, as the stock faced significant selling pressure.

The sharp decline comes amid intensified competition in the AI coding sector, with rivals including MiniMax, Moonshot AI, and OpenAI recently releasing competitive new models, raising concerns about Knowledge Atlas's future market share and profitability.

Additionally, the company completed a placement of 19.78 million new H shares on July 13 at HKD 1,588 per share, raising approximately HKD 31.41 billion. With no lock-up period disclosed for subscribers, this has increased near-term supply pressure on the float by approximately 9%. As the stock fell below the placement price, it triggered accelerated repositioning by investors reassessing the company's growth outlook and valuation.