Datang Power's stock plummeted 5.41% during intraday trading on Thursday, marking a sharp reversal in its recent performance.

The decline followed a company-issued risk warning that explicitly stated it currently has no operational computing-power synergy projects. This clarification directly countered recent market speculation that had previously fueled a significant rally in the stock, leading to the current price correction. The company also highlighted its elevated valuation, with a price-to-book ratio significantly above the industry average, warning investors of heightened trading risk.

For context, Datang Power recently reported strong first-quarter financial results, with revenue and net profit showing substantial year-over-year growth. However, its business remains heavily weighted toward coal-fired power generation, with new energy contributing a smaller portion of revenue. The stock's movement contrasts with modest gains seen among its sector peers during the same session.