Core Viewpoint - The stock price of Guangkang Biochemical (300804.SZ) has experienced a significant divergence from its fundamental performance, with a recent sharp decline following a substantial increase in price driven by speculative trading in the innovative drug sector [2][4]. Group 1: Stock Performance - On June 4, Guangkang Biochemical opened with a sharp decline, closing down over 13% after a previous surge of nearly 70% from a low of 26.53 yuan to a high of 48 yuan between May 25 and June 3 [2][3]. - The stock's volatility was exacerbated by institutional and retail investors' speculative trading, with institutions selling 57.42 million yuan worth of shares on June 3 [5][6]. Group 2: Financial Performance - The company's net profit is projected to decline from 96.17 million yuan in 2022 to 34.68 million yuan in 2024, representing a decrease of approximately 64% [4]. - In the first quarter of 2025, the net profit was reported at 17.11 million yuan, reflecting a year-on-year decline of 3.17% [4]. Group 3: Shareholder Actions - Following the stock price surge, major shareholders announced plans to reduce their holdings by up to 6%, potentially cashing out nearly 198 million yuan based on the closing price on June 3 [8][9]. - The controlling shareholder, Cai Danqun, is currently unable to sell shares due to a lock-up period but has pledged shares for financing [10][12].