Movement Alert|XUNCE Falls 9.93% in Regular Trading, Renewed Concerns Over Heavy-Asset Computing Expansion

Market Focus
Yesterday

On October 13, XUNCE fell 9.93% in regular trading, trading at HK$77.1, with turnover of HK$98.72 million. The decline extended a 5.17% drop on October 12, reflecting renewed market concerns over the company's plan to invest up to RMB 12 billion in building an AI inference and computing center and to apply for a maximum RMB 10 billion syndicated loan.

Investors remain wary of the financial leverage and rigid capital expenditure associated with this heavy-asset expansion strategy, prompting continued profit-taking despite the company's strong first-half performance, which saw revenue grow 389% to RMB 967 million and a turnaround to profitability. The repeated sell-offs since October 8 suggest that market skepticism about the computing expansion has not subsided.

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