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].

Core Viewpoint - Nohui Health, once hailed as the "first stock in cancer early screening," has been suspended from trading on the Hong Kong Stock Exchange for 18 months, potentially facing mandatory delisting due to regulatory rules [1] Group 1: Company Background - Nohui Health was established in 2015 in Hangzhou, Zhejiang, and became the first company in China focused on home early screening for high-incidence cancers, successfully listing on the Hong Kong Stock Exchange in 2021 [3] - The company has commercialized three main products targeting the top three high-incidence cancers in China: Changweiqing®, Pupu Tube®, and Youyou Tube® [3] - Changweiqing® is the only colorectal cancer screening product approved by the National Medical Products Administration in China, suitable for high-risk individuals aged 40-74 [3] Group 2: Financial Issues and Allegations - In August 2023, a short-selling firm, CapitalWatch, released a report alleging financial fraud, claiming that Nohui Health inflated its sales revenue through inventory manipulation, with actual sales for 2022 estimated at 76.95 million, significantly lower than the reported 765 million [4] - Despite management's strong denial and claims of third-party audits, Deloitte refused to endorse the company's financial statements in March 2024, raising concerns about the authenticity of sales data [4] Group 3: Stock Performance and Management Changes - Following the suspension on March 28, 2024, Nohui Health's stock price fell from an initial listing price of 26.66 HKD to 14.14 HKD, nearly halving in value [5] - The company has seen a series of executive departures, including the resignation of the founder and CEO, Zhu Yeqing, in 2025, and the appointment of joint provisional liquidators by the Cayman Islands court [5] - Investors have suffered significant losses, with the valuation of Nohui Health dropping from 14.14 HKD at suspension to nearly zero, with the latest valuation at 0.01 HKD [5] Group 4: Regulatory and Product Concerns - Nohui Health's core product, Changweiqing®, has a registration certificate expiring in November 2025, raising concerns about its future sales and regulatory compliance [5]