Winto Group Plunges 96.25%; Realises Losses Amounting to HK$1.112 Million

Winto Group (Holdings) Ltd has experienced a substantial plunge in its stock price, further extending losses in the afternoon, with a current drop of 96.25%.

The stock is now trading at HK$0.14 with a transaction value of HK$78.25 Million.

This decline comes after its significant surge of over 900% since May, marking a remarkable disparity in the company's stock price since that period.

One key factor influencing Winto Group's growth was its high concentration of ownership, with its largest controlling shareholder, Lu Wenhua, holding a significant stake of 61.73% as of March 31st.

However, after a rights issue on April 3rd, Lu Wenhua's personal stake decreased to 51.44%.

As only a small portion of the company's stock is liquid, even minor trading activity can lead to significant fluctuations in the stock price.

In its recent first-quarter results, Winto Group reported a considerable decline in revenue, reaching HK$2.208 million - a 73.69% decrease compared to the same period last year.

The company's realised losses amounted to HK$1.112 million, in contrast to a profit of HK$1.373 million during the same period last year.

The revenue decline is primarily attributed to a slowdown in outdoor advertising and exhibition-related services in the Macau market.

This reduced demand for outdoor advertising has demonstrably impacted the company's financial performance during the reported quarter.