Hong Kong Stock Market News | ZX INC falls more than 20% again, with a cumulative drop of 81% in the past two trading days, erasing most of its gains since listing.
ZX INC has experienced a consecutive two-day plunge of over 20%, with a cumulative decline of 81%. The company is the second largest non-self-developed mobile game product marketing and operation platform in China, with its main businesses including interactive entertainment, fast food, and trendy toys. Despite the growth in registered users in the first half of the year, there has been a decline in monthly active users and monthly paying users, putting short-term pressure on the company's performance. Analysts believe that the degree of control by the stock manipulators in this stock is already very high.
Zhitong App has learned that ZX INC (09890) has fallen by more than 20% again, with a cumulative decline of 81% in the past two trading days, erasing most of its gains since its listing. As of the time of writing, it has fallen by 20.53% to HKD 13.24, with a turnover of HKD 8.34 million.
It is reported that ZX INC is the second largest marketing and operation platform for non-self-developed mobile game products in China, mainly operating online game distribution business through two models: self-operated and co-operation. The company's business is mainly divided into three parts: interactive entertainment, fast food, and trendy toys. Among them, the interactive entertainment business, mainly represented by the "Greedy Game" brand, is the core business of the company, accounting for 90% of its revenue.
As of June 30th, the company has operated more than 330 game products, with approximately 433 million registered users for the marketed and operated game products, a year-on-year increase of 21.6%. In the first half of the year, although the number of registered users of ZX INC has increased significantly, the monthly active users have decreased by 7.2% compared to the same period last year, reaching 8.6782 million, and the monthly paying users have decreased by 40.3% to 1.0548 million. Although the average monthly ARPPU reached 509.4 yuan, a year-on-year increase of 21.5%, it is not enough to make up for the decline in the number of monthly paying users. This has become an important reason for the short-term pressure on the company's performance.
Analysts believe that the degree of control by the stock manipulators is already very high. Being able to discover and timely purchase stocks manipulated by the manipulators used to be a shortcut for small investors to succeed. However, in today's extreme market conditions, keeping up with the manipulators to profit is not only a technical skill but also a matter of luck.