On September 2, ILUVATAR COREX fell 4.74% in regular trading, trading at HK$369.2/share, with turnover of HK$64.62 million. The decline extends a selloff triggered by market skepticism over the quality of the company's first-half earnings.

The company reported H1 revenue of RMB 946 million, up 191.6% year-over-year, with net profit of RMB 106 million marking a turnaround from a RMB 609 million loss a year earlier. However, the profit was largely underpinned by RMB 756 million in unrealized fair-value gains from its stake in a Shanghai-listed advanced packaging firm, rather than core GPU business improvement. Stripping out this non-operating item, the main business remained in loss. Meanwhile, gross margin plunged from 50.1% to 17.2%, well below industry peers, fueling investor concern over profitability sustainability.

The broader semiconductor sector added pressure, with BIREN TECH down 4.75%, HUA HONG GRACE down 2.23%, and MONTAGE TECH down 1.90%. Although ILUVATAR COREX is set to join the Hang Seng TECH Index on September 7 — with an estimated HK$6.9 billion in passive fund inflows — near-term earnings quality concerns and sector-wide selling continue to weigh on the stock.

(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.)