160 HEALTH plummeted 5.30% intraday on Wednesday, continuing a trend of volatility as investors grapple with valuation concerns despite the company's operational expansion in digital healthcare.

The decline comes as the company faces persistent valuation pressure, particularly from its pharmaceutical health products business which has gross margins lingering around just 1.4%. This creates significant valuation challenges relative to the company's current market capitalization.

These concerns persist even as 160 HEALTH announced that its "160 AI Hospital" operational cooperation model has expanded to 102 public medical institutions, including 54 top-tier (Grade III-A) hospitals. These partner hospitals collectively serve approximately 84.37 million outpatient visits annually, generating combined revenue of around RMB 99.7 billion.