Shares of ALI HEALTH (00241) opened lower and extended declines in Wednesday's session, plunging more than 6% at one point during intraday trading. As of the time of writing, the stock was down 4.89% at HK$2.915, with turnover reaching HK$313 million.

On the news front, the company recently announced a series of senior management changes. It was confirmed that Yu Yong has been appointed as executive director, chairman of the board, chief executive officer, chairman of the nomination committee, and authorized representative. Meanwhile, ALI HEALTH also disclosed that Shen Difan has stepped down from his roles as chairman, CEO, chairman of the nomination committee, and authorized representative. However, Shen will remain an executive director, dedicating more time to advancing Alibaba Group's artificial intelligence initiatives in the healthcare sector, while continuing to lead the development of ALI HEALTH's hydrogen ion and traceability code businesses.

BofA Securities noted that despite the recent leadership transition and the appointment of a new CEO, medical AI and omnichannel pharmaceutical retail are expected to remain top strategic priorities, which could strengthen the company's long-term competitiveness and growth trajectory. The investment bank has trimmed its fiscal 2027 revenue and adjusted net profit forecasts for ALI HEALTH by 4%, now projecting year-on-year growth of 9% to RMB 37.4 billion for revenue and a 10% decline to RMB 2.1 billion for adjusted net profit. The downward revision is primarily attributed to reduced platform subsidies and weaker sales in the non-pharmaceutical category.