NH HEALTH has been suspended from trading since March 28, 2024, marking exactly 18 months as of September 27, 2024. According to Hong Kong Stock Exchange regulations, the company may face forced delisting due to the continuous 18-month suspension.

Recently, Everbright Securities, Bosera Asset Management, and Industrial Bank Fund Management have successively announced adjustments to the valuation of NH HEALTH shares held in their respective portfolios. All three institutions have set the stock valuation at HK$0.01 per share, effectively reducing the company's HK$6.4 billion market capitalization to near zero.

Founded in 2015 in Hangzhou, Zhejiang Province, NH HEALTH was China's first biotech company focused on at-home early cancer screening. The company successfully listed on the Hong Kong Stock Exchange in 2021, becoming "China's first cancer screening stock" under the ticker 6606.HK. Targeting colorectal and gastric cancers, which rank among China's top three most prevalent cancers, the company has commercialized three flagship products: ColoClear®, PuPu Tube®, and YouYou Tube®.

Financial data shows NH HEALTH recorded revenues of RMB 70.6 million, RMB 210 million, and RMB 770 million from 2020 to 2022, representing year-over-year growth of 21.1%, 201.5%, and 259.5% respectively. The 2023 annual report was not published due to audit issues. However, preliminary data indicated that total revenue for 2023 reached RMB 2.01 billion, a 164% increase from 2022, with cash collections exceeding RMB 1.4 billion. The company achieved gross profit of RMB 1.84 billion and reported its first annual after-tax profit.

However, performance challenges from Capital Watch and auditor Deloitte struck the previously successful company like a thunderbolt. In August 2023, overseas institution Capital Watch published a short-selling report, alleging that NH HEALTH fabricated 90% of its 2022 sales revenue through channel stuffing, estimating actual annual sales at only RMB 76.95 million versus the reported RMB 765 million—a ninefold discrepancy. NH HEALTH subsequently denied these allegations.

In March 2024, Deloitte failed to issue the annual audit report on schedule, instead raising questions about several key financial matters: the effectiveness and commercial reasonableness of certain sales models for NH HEALTH's flagship product "ColoClear," the validity of sales transactions for PuPu Tube and YouYou Tube products, and the effectiveness of certain sales and marketing expenses. Subsequently, NH HEALTH announced its trading suspension and initiated an independent investigation.

Since the suspension began on March 28, 2024, the company has experienced resignations of its auditor, chief financial officer, and joint company secretary, including the departure of Chairman and CEO Zhu Yeqing, as well as the appointment of joint provisional liquidators. After 18 months, the company has still failed to provide clear accountability to the public and investors.

Once hailed as "the hope of the early screening sector," the company may truly be approaching its end, potentially leaving numerous shareholders with total losses. Delisting is not the endpoint—the company continues operations, with NH HEALTH's website and official social media accounts still updating regularly, and recent successful bids for hospital projects. However, public confidence has long been lost.

Farewell, NH HEALTH.