CAROTE LTD (02549) saw its stock price plummet by 6.75% in pre-market trading on Friday, following the release of disappointing interim results for the first half of 2025. The significant drop reflects investors' concerns about the company's financial performance and future prospects.

According to the company's announcement, CAROTE LTD reported a total revenue of RMB 837 million for the six months ended June 30, 2025, representing a substantial year-on-year decrease of 12.4%. More alarmingly, the net profit fell sharply by 37.4% compared to the same period last year, reaching only RMB 103 million. The basic earnings per share also declined to RMB 0.19, down from RMB 0.41 in the first half of 2024.

The weak financial results have clearly shaken investor confidence, leading to the sharp sell-off in pre-market trading. While the company mentioned plans to expand its sales channels and invest in ESG initiatives, allocating 20% and 10% of its resources respectively by the end of 2027, these long-term strategies seem to have done little to assuage immediate concerns about the company's declining performance in a challenging market environment.