YOFC's stock price plummeted 7.19% during intraday trading, extending a significant correction phase for the optical fiber and cable manufacturer. The sharp decline follows a period of extraordinary gains that had pushed the stock to record highs.

According to market analysis, the selloff is primarily driven by extreme valuation levels, with YOFC's dynamic PE ratio exceeding 195x and PB ratio above 12x. These metrics reflect stretched valuations that have prompted investors to lock in profits after the stock surged more than 12-fold over the past year from approximately 30 yuan to recent highs.

While fundamental catalysts for the company remain intact—including AI data center-driven fiber demand, surging optical fiber preform prices, and recent inclusion in the FTSE China 50 Index—the massive accumulated profit-taking pressure and cautious short-term sentiment have overwhelmed these positive factors. The stock had previously triggered an abnormal trading volatility alert after three consecutive trading days of cumulative price deviation exceeding 20%.