On September 7, Z.AI fell 3.16% in regular trading, trading at 1042.0 HKD/share with turnover of 29.27 billion HKD, marking continued weakness since the August 31 interim results release.

The sustained decline stems from the company's H1 revenue of 954 million RMB, which grew 399.7% year-over-year but fell short of full-year consensus forecasts exceeding 5 billion RMB from JPMorgan, UBS, and other institutions. Adjusted net loss widened 12.1% to 1.964 billion RMB. Gross margin contracted sharply from 50.0% to 26.4%, driven by a revenue mix shift as high-margin on-premise deployment revenue share plunged from 84.8% to 13.5%, diluted by lower-margin API services. The stock has now fallen over 60% from its June high of 2,980 HKD.

Despite multiple brokerages including CMBI, JPMorgan, and Dongwu Securities maintaining buy ratings and raising target prices — with JPMorgan setting a 2,000 HKD target — market skepticism over the profitability path for large language model commercialization continues to weigh on valuations.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)