Core Viewpoint - Nohow Health, once hailed as "China's first cancer early screening stock," is set to be delisted from the Hong Kong Stock Exchange due to failure to comply with resumption guidelines, marking a significant collapse in both capital and industry trust [1][4]. Company Summary - Nohow Health was established in 2015 and went public in February 2021, initially seeing its stock price soar to 89.65 HKD, with a market capitalization exceeding 40 billion HKD [2]. - The company reported impressive financials, with 2022 revenue at 765 million CNY, a 259.5% year-on-year increase, and 2023 H1 revenue at 823 million CNY, surpassing the previous year's total [2]. - A short-selling report in August 2023 accused Nohow Health of inflating revenue through "channel stuffing," revealing that the actual sales for 2022 were only 76.95 million CNY, nearly nine times lower than reported [2][3]. - Following management's strong denial of the allegations, the auditing firm Deloitte withdrew its endorsement of the 2023 financial statements, leading to a suspension of trading [3]. - The company faced significant management upheaval, with key executives resigning, including the founder and CEO due to health reasons [3][4]. - Nohow Health's fraudulent practices included purchasing human waste for testing samples, severely undermining the credibility of its core product [4]. Industry Summary - The colorectal cancer screening market in China is expanding, with a market size reaching approximately 2.954 billion CNY in 2023, driven by factors such as an aging population and increased health awareness [5]. - The market for molecular screening technologies is also growing, with a size of about 596 million CNY in 2023, indicating a broad potential for development in this sector [5]. - The fallout from Nohow Health's scandal has exposed vulnerabilities in the industry, such as the lack of sustainable funding and the premature commercialization of clinical technologies [6]. - The investment landscape for non-blood early screening technologies has become increasingly cautious, with a significant decline in private equity financing for the IVD sector, dropping over 40% year-on-year in Q1 2025 [6].
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