On June 2, DeepZero (02723.HK) fell 7.95% in regular trading, trading at HK$356.0/share, with trading volume of HK$16.47 million. The decline extends a selloff that began on June 1, when the stock dropped over 7% on fundamental concerns.

The pullback comes as investors reassess the company's valuation following a nearly 8-fold surge in its first three trading days after listing on May 27 at HK$55.5 per share. According to public filings, DeepZero's net profit has declined for three consecutive years, falling from approximately RMB 61 million in 2023 to just RMB 9 million in 2025 — a contraction of nearly 85%. Gross margin also deteriorated from 31.2% to 25.5% over the same period. Revenue remains below 2023 levels despite a modest recovery in 2025. With a trailing P/E ratio exceeding 1,395x, profit-taking appears to be intensifying as the initial IPO euphoria driven by the stock's scarcity as a listed AI application play begins to fade.

DeepZero is a leading decision AI technology company in China, providing AI-powered applications focused on marketing and sales scenarios, encompassing intelligent advertising placement and intelligent data management to enable enterprise-level automation in decision-making.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)