Core Viewpoint - Nohui Health, once hailed as the "first stock for early cancer screening," has been forcibly delisted from the Hong Kong Stock Exchange due to severe financial fraud allegations, including the purchase of human waste to fabricate testing samples, leading to a collapse in both capital and industry trust [1][4]. Company Overview - Founded in 2015 in Hangzhou, Nohui Health aimed to provide at-home early screening for colorectal and gastric cancers, eliminating the need for invasive procedures [2]. - The company went public in 2021, with its stock price peaking at 89.65 HKD and a market capitalization exceeding 40 billion HKD [2]. Financial Performance - Nohui Health reported impressive financial growth, with 2022 revenue at 765 million CNY, a 259.5% increase year-on-year, and 2023 first-half revenue surpassing the entire 2022 figure [4]. - However, a short-seller report in August 2023 revealed that the actual sales figures were grossly inflated, estimating the true 2022 sales at only 76.95 million CNY, a discrepancy of nine times [4]. Management Response and Consequences - Despite management's strong denial of the allegations and claims of third-party audits, Deloitte refused to endorse the financial statements in March 2024, leading to a critical loss of credibility [5]. - Following the delisting, the stock price plummeted from 14.14 HKD to near zero, with significant losses reported by investors, including a major asset management firm that downgraded its valuation multiple times [5][6]. Investor Reactions - Over 4,300 investors have registered claims for losses exceeding 700 million HKD, with many seeking legal recourse against the company [6]. - A significant portion of these investors purchased shares after the short-seller report, indicating a lack of awareness regarding the underlying issues [6]. Industry Implications - The scandal has raised concerns about the integrity of the cancer screening industry, which is critical given the high incidence of cancer in China, with over 4.5 million new cases annually [7]. - The case of Nohui Health serves as a cautionary tale for the industry, emphasizing the need for ethical practices and genuine innovation rather than opportunistic behavior [7].
“癌症早筛第一股”强制退市！被曝向环卫工人购买公厕粪便，虚增检测量，市值曾达400亿港元