NUOBIKAN's stock plummeted 5.44% during intraday trading on Wednesday, continuing a downward trend that has seen significant losses since the company's inclusion in the Stock Connect program.
The decline is attributed to persistent profit-taking selling pressure from early holders, which has not yet fully subsided. Additionally, market skepticism over the company's earnings quality remains despite NUOBIKAN's clarification statement regarding a supplier revenue inflation incident, with investors concerned about the significant mismatch between 23.7% year-over-year revenue growth and only 2.1% growth in net profit attributable to shareholders.
The stock's limited free float of approximately 30 million shares contributes to extremely high daily turnover rates, further amplifying price volatility in both upward and downward movements and suppressing valuation recovery potential.