On October 27, NH HEALTH (06606.HK), once celebrated as the "first cancer early screening stock," was officially delisted by the Hong Kong Stock Exchange following a regulatory committee decision. The company’s downfall was marked by an almost surreal scandal—buying public toilet waste from sanitation workers to fabricate test samples and inflate revenue, which was allegedly 90% falsified.
From its peak as a market darling to its disgraceful exit, NH HEALTH’s collapse represents a dual crisis of investor trust and industry credibility.
**Financial Fraud Allegations and Executive Exodus** Founded in 2015 in Hangzhou by a team from Peking University’s School of Life Sciences, NH HEALTH specialized in at-home early screening kits for colorectal and gastric cancers. Its 2021 IPO saw shares soar to HK$89.65, pushing its market cap past HK$40 billion.
Initially, financials appeared robust: 2022 revenue hit RMB765 million, up 259.5% year-on-year, while H1 2023 revenue reached RMB823 million. However, a August 2023 short-seller report by CapitalWatch exposed cracks, alleging NH HEALTH inflated sales by ninefold, with actual 2022 revenue just RMB76.95 million. Despite vehement denials, Deloitte’s refusal to endorse its 2024 financials over sales authenticity concerns proved fatal.
By March 28, 2024, trading was suspended at HK$14.14—nearly halved from its IPO price. A leadership exodus followed, including CFO Gao Yu and founder Zhu Yeqing, who was ousted as executive director in February 2025. In August 2025, Cayman Islands courts appointed provisional liquidators, freezing board powers.
Investors suffered heavy losses. Everbright Sunlight Smart Manufacturing Fund, NH HEALTH’s top holder, slashed valuations six times, from HK$14.14 to zero. Over 4,300 investors registered losses exceeding HK$700 million, with 60% buying shares post-short-seller report. CapitalWatch CEO Zhu Jiang confirmed materials were submitted to Hong Kong regulators for potential class action.
**The Toilet Waste Scandal** In October 2025, media revealed NH HEALTH purchased public toilet waste to fake test volumes, even splitting samples across fake accounts. These acts not only breached medical ethics but undermined its flagship product, "Chang Wei Qing"—China’s first approved colorectal cancer screening kit, now set to expire in November 2025 with no renewal prospects.
Zhu Jiang noted red flags emerged in 2022 when doctors refused to recommend Chang Wei Qing, contradicting reported sales. A 16-month investigation found inflated figures across hospitals, clinics, and e-commerce, with expired kits counted as revenue.
"This case may be among Hong Kong’s largest financial frauds," Zhu remarked.
The scandal underscores the need for integrity in cancer screening—a field with vast potential, given China’s 4.5 million annual new cancer cases, where early detection could cut mortality by 40%. NH HEALTH’s demise leaves a cautionary tale for the industry.