HK Stock Market Move | Zhaogang Group-W (06676) fell 22% at the close, the company went public in the form of De-SPAC, with losses exceeding 1.1 billion yuan in over 3 years.

ZhaoGang Group-W (06676) fell 22% at the close, with an increase of over 18% in the morning session. At the time of writing, it fell 10% to 9 Hong Kong dollars, with a turnover of 5.9155 million Hong Kong dollars. On the news front, on March 10th, ZhaoGang Group officially listed on the Hong Kong Stock Exchange through a De-SPAC (special purpose acquisition company merger listing) method. It is reported that the group was established in 2012 and mainly connects the major participants in the steel trading industry to its digital platform, providing one-stop B2B services for the entire steel trading chain, including online steel trading, logistics, warehousing and processing, SaaS products, and big data analysis. Currently, ZhaoGang Group is gradually expanding into non-steel industrial raw materials markets such as electronic components, electrical and mechanical products. In terms of performance, the revenue of ZhaoGang Net in the first 9 months of 2021, 2022, 2023, and 2024 was 1.35 billion, 0.905 billion, 1.17 billion, and 1.14 billion RMB respectively; while the net losses were 0.27 billion, 0.37 billion, 0.47 billion, and 0.5 billion RMB respectively, accumulating a total loss of approximately 1.16 billion RMB over 3 years. As for the reasons for the perennial losses, ZhaoGang Net explained in its prospectus that during the historical period, the company has been focusing on investing resources to expand business scale, expand buyer and seller bases, develop and launch new services, and enhance technical infrastructure, leading to increased operating expenses.