Baige Digital's stock plummeted 19.93% during intraday trading on Thursday, extending losses after its recent IPO rally as investors shifted focus to the company's underlying business challenges.

The sharp decline follows a report highlighting a significant drop in the company's insurance policy volume from 1.9 billion to 490 million, raising serious questions about the sustainability of its business expansion model. Market sentiment has turned from initial IPO euphoria to fundamental concerns as these operational issues come to light.

Further weighing on investor confidence are the company's persistent financial losses, with reported deficits of RMB 17.18 million, RMB 27.71 million, and RMB 46.67 million from 2023 to 2025 respectively. Additional concerns include gross margins remaining below 10%, an asset-liability ratio of 119.17%, and company warnings that losses will continue to widen, creating a valuation disconnect between the company's market capitalization and its negative net assets.