JOINN Laboratories (China) Co., Ltd. (Stock Code: 06127) saw its stock price plummet by 5.01% in pre-market trading on Friday, following the release of its disappointing third-quarter 2025 financial results. The significant drop in share value reflects investors' concerns over the company's declining performance and intensifying market competition.

According to the unaudited Q3 2025 results, JOINN reported a substantial 34.87% year-on-year decrease in revenue, which stood at approximately RMB316.39 million. More alarmingly, the company's net profit attributable to shareholders plummeted by 80.11% compared to the same period last year, reaching only about RMB19.77 million. The net profit after non-recurring items experienced an even steeper decline of 92.94%, falling to RMB5.99 million.

The company attributed these disappointing figures to intensified market competition and reduced gross profit margins, particularly in its laboratory services business. JOINN also noted that price competition has significantly impacted the profitability of its core operations. While the company reported new orders worth RMB1.64 billion for the first three quarters and a total order backlog of around RMB2.5 billion, it cautioned that execution and profitability might continue to be influenced by multiple factors. As investors digest this information, the sharp stock price decline suggests growing concerns about JOINN's ability to maintain its market position and profitability in an increasingly competitive landscape.