Reported by NUPIAO | Song Jianan
June 30th was a brutal day for “Hong Kong’s First AGI Stock,” Yunzhiheng (09678.HK). The stock tanked hard, closing at 71.45 HKD—a single-day drop of 41.19%. Trading volume hit 445 million HKD with a turnover rate spiking to 12.86%, placing it right at the top of the Hong Kong stock decline list.
Today also marked exactly one year since Yunzhiheng listed on the HKEX. This timing is critical: shares locked up for a year by controlling shareholders, cornerstone investors, and pre-IPO institutional holders are finally unlocking. Suddenly, a massive wave of low-cost shares flooded into the open market, acting as the perfect trigger for this price collapse.
But let’s be real—the stock has been in trouble long before today. In just the last 20 trading sessions, it’s dropped 70%, and for the whole year, we’re looking at an 80% plunge. From its post-listing peak of 879 HKD, the stock has nosedived. Its current market cap sits at a measly 5.3 billion HKD—nowhere near the glory days. Compared to the IPO price of 205 HKD, it’s currently way below issue price.
According to HKEX filings, all lock-up commitments expired on June 29th. By June 30th, over 40 million restricted shares became freely tradable, representing a paper value of more than 7 billion HKD. Here’s the kicker: these shareholders have wildly different cost bases. Cornerstone investors bought near the 205 HKD IPO price, but early institutions and founding shareholders who entered during the 10+ funding rounds before listing paid only tens of HKD per share. Even if the stock halves again, they still have huge profits to cash out.
Analysts point out that combining a fresh listing unlock period with a deeply corrected stock price creates a panic scenario. Institutional fear drives them to sell aggressively. When tons of low-cost chips flood the market, supply completely overwhelms demand, leading to a liquidity stampede.
For context, Yunzhiheng was founded in Beijing back in 2012. The founding team consists of key researchers from USTC and the Chinese Academy of Sciences. CEO Huang Wei previously worked at Motorola Research Institute, while CTO Liang Jiaen has spent over a decade specializing in speech recognition algorithms. In fact, nearly 70% of their workforce is dedicated to R&D.
In terms of products, they focus on IoT voice interaction tools and smart voice assistants. For broader smart IoT solutions, they target specific scenarios like hotels, communities, residential buildings, and hospitals.
Over its 13-year history, Yunzhiheng has raised over 2 billion RMB across 11 funding rounds. Their investor list reads like a who’s who of industry and state-backed capital: Qiming Venture Partners, China Investment Network, JD.com, Qualcomm, and SenseTime. Finally, on June 30, 2025, they listed on the HKEX at 205 HKD, raising a net 237 million HKD.
The IPO launch was initially a dream run. The market was super excited. After opening slightly higher, it closed at 296.4 HKD—a 44.6% gain on day one. With a tiny float (only 2.2% of total shares), speculative money pushed the price through the roof within two months, hitting a record high of 879 HKD. At its peak, the market cap broke 40 billion HKD.
At that time, everyone was betting big on their general-purpose large model commercialization. Guotai Haitong Securities covered the stock last December with a target price of 451.33 HKD, maintaining a “Buy” rating. The logic? They believed Yunzhiheng’s Shanhai Large Model would dominate the Smart Life and Healthcare sectors, promising massive revenue growth.
However, one year of operating data has slowly crushed those initial optimistic expectations. Yunzhiheng’s 2025 annual report shows revenue of 1.211 billion RMB, up 29.01% year-over-year. But they still lost 327 million RMB in net profit, marking four consecutive years of losses. Gross margins slipped to 36.1% from 38.8% in 2024. The painful reality? Revenue is growing, but profits aren’t following.
Their income structure is dangerously dependent on smart home voice hardware solutions. Smart life business accounts for nearly 80% of total revenue. While their large model business grew tenfold to 610 million RMB, most of it comes from one-off project fees rather than standardized subscription models. Customer retention in healthcare is a weak spot at just 53.3%, showing poor repeat purchase capability among enterprise clients.
To make matters worse, in less than a year after listing, Yunzhiheng completed three discounted private placements, raising a net 880 million HKD. That’s more than they raised during their IPO! Just last May, their latest placement came with a discount of nearly 20%. The market sees this as a clear signal: they are burning cash, can’t generate enough organic revenue, and are relying entirely on capital markets to survive. These frequent discounts keep diluting equity, and with the massive unlock coming up, double supply pressure is driving secondary market funds straight for the exits.
The competitive landscape is also getting brutal, squeezing any chance for profit recovery. Data from Frost & Sullivan shows the domestic AI solution market will grow at a CAGR of 36.7% from 2024 to 2030. But the speech and general large model tracks are packed. Giants like iFlytek, Baidu, and Alibaba are using their computing power and channel advantages to crush smaller AI players. Even though Yunzhiheng covers 450 tertiary hospitals nationwide, medical AI projects have long delivery cycles and slow payments, which could further strain their cash flow.
Some experts argue that for unprofitable AI companies in Hong Kong, valuation depends heavily on how fast they burn cash and when they can actually monetize. With Yunzhiheng’s triple discounted placements plus the massive unlock releasing negative news all at once, a short-term rebound looks unlikely. The only path to fixing the valuation is significantly increasing the share of standardized subscription revenue from their large models and shrinking losses continuously.
