Shares of Guangdong Hong Kong Greater Bay Area Holdings Ltd (01396.HK) plummeted 5.28% in Thursday's trading session, following the release of the company's disappointing first-half 2025 financial results. The sharp decline reflects investor concerns over the company's significant revenue drop and continued gross losses.

According to the unaudited interim results announced late Wednesday, the company's revenue for the six months ending June 30, 2025, plunged by approximately 73% to RMB228.3 million, down from RMB861.7 million in the same period last year. The dramatic decrease was primarily attributed to variations in the progress of property deliveries. Despite a reduction in the cost of sales, the company still reported a gross loss of around RMB270.8 million, albeit an improvement from the RMB364.3 million gross loss recorded in the first half of 2024.

While the company reported a net income of RMB968.5 million for the period, the market's focus on the revenue decline and ongoing gross losses appears to have triggered the sell-off. Guangdong Hong Kong Greater Bay Area Holdings stated that it is concentrating on enhancing operational capabilities by revitalizing existing assets and introducing new types of productive businesses. The company also emphasized its commitment to technological empowerment and business diversification to strengthen market competitiveness. However, these long-term strategies have yet to convince investors in the face of the current financial challenges, as reflected in the stock's sharp decline.