On September 2, Z.AI fell 3.73% in regular trading to HKD 1,121.0 per share, with turnover of HKD 158 million, extending the prior session's late-day pullback.

The decline follows the company's first interim report since its Hong Kong listing, released on August 31. H1 revenue reached RMB 954 million, up 399.7% year-over-year but below market expectations. Adjusted net loss widened 12.1% to RMB 1.964 billion. Gross margin contracted sharply from 50.0% to 26.4%, primarily due to a dramatic revenue mix shift: high-margin local deployment revenue fell from 84.8% to just 13.5% of total revenue, diluted by the rapid scaling of lower-margin API services, which surged 2,736% to RMB 825 million. Management acknowledged at the earnings call that Z.AI still trails Anthropic by approximately 17 months, fueling debate over whether the company's roughly HKD 550 billion market capitalization is justified. The company guided year-end ARR to USD 2.4 billion and targets restoring gross margin toward 50% within 12 to 18 months.

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