Tuya Inc.'s stock plummeted 5.33% during Thursday's intraday trading session.

The sharp decline appears to be driven by the company's disclosure of a significant share issuance. Tuya filed a return with the Hong Kong Stock Exchange showing it issued 20,000 Class A ordinary shares at an issue price of USD 0.00005 per share. This issuance was tied to the exercise of options or restricted share units under the company's 2015 Equity Incentive Plan.

The transaction increases the total number of issued Class A shares and represents a dilutive event for existing shareholders, likely prompting the sell-off. The extremely low issue price may have further fueled investor concerns about dilution and its impact on shareholder value.