Shares of QUANTGROUP (02685) tumbled more than 4% in Hong Kong trading, last down 4.17% at HK$4.255 with turnover reaching HK$75.52 million.

The decline follows the company's recent announcement regarding its projected financial performance for the six months ending June 30, 2026. The group expects to record revenue of approximately RMB 431 million to RMB 457 million, representing a decrease of about 10% to 15% compared to the same period in 2025. Meanwhile, profit attributable to equity shareholders is anticipated to be between RMB 27 million and RMB 34 million, reflecting a sharp reduction of approximately 75% to 80% year-on-year.

According to information currently available to the board, the anticipated decrease in profit attributable to equity shareholders is primarily due to two key factors. First, the group's revenue has declined, mainly attributed to intense market competition during the period and the reallocation of marketing and sales resources, which have resulted in reduced revenue from the existing consumer e-commerce platform business. Second, the group's cost of sales has increased, as the company incurred service costs related to its platform operations under its business cooperation arrangements during the period, while no such costs were generated during the corresponding period in 2025.