Shares of Easy Smart Group Holdings (02442) dropped more than 9% during Hong Kong trading, with the current price retreating nearly 60% from its monthly high. At the time of writing, the stock was down 9.01% to HK$63.10, with trading turnover reaching HK$19.99 million.

On the news front, on the evening of September 17, Easy Smart Group Holdings issued a profit warning, expecting a loss attributable to owners of the company of no more than approximately HK$32 million for the fiscal year ending June 30, 2026, compared to a loss of only about HK$5 million in the previous year. The primary reasons cited are the completion or near-completion of major public sector projects in the earlier period, leading to reduced revenue and gross profit, as well as intense market competition lowering profit margins on newly tendered projects.

Previously, on September 14, the company announced that starting from October 6, the board lot size would be changed from 2,000 shares to 100 shares per board lot. Notably, prior to this round of selling, the company had just completed a "valuation leap" leveraging the AI concept.

On August 18, controlling shareholder Talent International transferred 102 million shares to AI company Guangte Yuanzhi, with the consideration being approximately 45.88% equity in its wholly-owned subsidiary. Guangte Yuanzhi became the second-largest shareholder, while Talent International's controlling stake remained unchanged.