Core Viewpoint - The public fund star stock, HuiLiang Technology, experienced a dramatic 38% drop after announcing a potential sale of its core AI technology business, Mintegral, amid pressures from DeepSeek's open-source project and data security allegations against its US counterpart, AppLovin [1][4][10] Group 1: Stock Performance and Market Reaction - HuiLiang Technology achieved a tenfold increase in stock price over four months, largely driven by the performance of AppLovin, which saw a 60-fold increase over two years [1][2] - Following the announcement of the potential sale, investors who had followed fund managers into HuiLiang Technology faced significant pressure, anticipating a negative market reaction [1][2] - The stock's drop on February 27 was preceded by a 20% decline in AppLovin's stock, indicating a strong correlation between the two companies [6][10] Group 2: Business Operations and Market Context - HuiLiang Technology operates as an AI-driven programmatic advertising platform, providing solutions for user acquisition and traffic monetization [3][8] - The company has benefited from international expansion and has been a focus for A-share fund managers seeking investment opportunities in the AI sector [3][7] - The potential sale of Mintegral raises concerns about the company's core business, which is critical for its revenue, especially given that 45% of its total revenue comes from the European and American markets [10] Group 3: Regulatory Environment and Industry Challenges - New US regulations aimed at protecting personal data may impact HuiLiang Technology's operations, as the company acknowledges the potential effects of these changes on its business [5][10] - The scrutiny faced by AppLovin regarding data security and advertising practices could have ripple effects on HuiLiang Technology, given their similar business models [6][10] - The competitive landscape includes major players like META, Google, and ByteDance, indicating that HuiLiang Technology operates in a challenging environment with significant competition [8]