CIG Shares Plunge Over 6% in Late Trading, Hitting Record Low Despite Company's Rebuttal of Market Rumors

Stock News
02/20

CIG (06166) saw its shares decline more than 6% in late trading, hitting a low of HK$63.8 and reaching a new record low since listing. As of the time of writing, the stock was down 6.03% to HK$63.9, with a turnover of HK$36.559 million.

On February 13, CIG issued an official response on the investor interaction platform regarding recent online rumors. The company explicitly stated that two circulating claims—"optical modules from the company were delayed by its largest customer, Cisco, in providing optical chips" and "performance fell short of expectations"—do not align with the actual operational situation.

According to the company's performance forecast, CIG expects its net profit attributable to shareholders for 2025 to increase by 51.19% to 66.79% year-on-year, while adjusted net profit is projected to rise by 64.62% to 81.81%.

Huaxin Securities previously released a research report indicating that the funds raised from CIG's Hong Kong listing in the fourth quarter were mainly retained in Hong Kong dollar foreign exchange. Due to the decline of the Hong Kong dollar exchange rate following the U.S. dollar, net exchange gains turned into losses. The company is estimated to incur an exchange loss of approximately RMB 81.61 million for the 2025 fiscal year, which may negatively impact fourth-quarter performance growth but does not alter the overall upward trend in earnings.

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