Shangtang Technology’s stock price closed at 1.04 Hong Kong dollars per share on September 12, marking a 90% drop from its peak. Over the past five years, the company has accumulated losses of 52.8 billion RMB.
According to a report from mainland media outlet Kancj.com on September 12, 2021, Shangtang Technology went public on the Hong Kong Stock Exchange in December 2021. Its stock price surged from 3.85 Hong Kong dollars per share to 9.7 Hong Kong dollars per share, with a market capitalization of nearly 350 billion Hong Kong dollars. However, in just two years, its stock price plummeted to 1.04 Hong Kong dollars per share, down 90% from its peak.
In terms of performance, from 2018 to 2023, Shangtang’s net profits were losses of 3.433 billion RMB, 4.968 billion RMB, 12.158 billion RMB, 17.177 billion RMB, 6.093 billion RMB, and 6.495 billion RMB respectively, totaling accumulated losses of 50.324 billion RMB. Including the first half of this year, the total losses have reached 52.8 billion RMB.
Shangtang Technology is an artificial intelligence software company established in 2014 and was known as the AI company with the highest financing amount and valuation. Data shows that from 2015 to June 2021, Shangtang completed a total of 12 rounds of financing, with a total financing amount of around 35 billion RMB.
At the time, the industry believed that based on the initial public offering (IPO) issuance price, Shangtang Technology’s market capitalization exceeded 100 billion RMB. Some voices even suggested a valuation starting at over a trillion RMB, indicating that a market cap of 100 billion RMB was just the beginning.
However, after its IPO, Shangtang Technology has failed to demonstrate its profitability. In 2019, the company’s operating income was 3.027 billion RMB, and by 2023, it only slightly increased to 3.406 billion RMB.
Kancj.com pointed out that from the perspective of the capital market, it’s acceptable to incur losses, but it’s unacceptable to lose growth potential. Moreover, with the company’s net losses exceeding operating income, it is difficult to justify for a company that has been established for a decade and listed on the capital market for three years.
As of 10:42 am on September 13, Shangtang Technology’s stock was trading at 1.070 Hong Kong dollars per share, with a market capitalization of 37.602 billion Hong Kong dollars.