On September 4, Z.AI fell 3.07% in regular trading, trading at 1078.0 HKD/share, with turnover of HKD 4.115 billion, marking the fourth consecutive session of weakness since its interim results release.

On August 31, Z.AI reported H1 revenue of RMB 954 million, up 399.7% year-over-year but below market expectations. Adjusted net loss widened 12.1% to RMB 1.964 billion. Gross margin declined sharply from 50.0% to 26.4%, primarily driven by a structural revenue shift — high-margin localized deployment revenue fell from 84.8% of total revenue to just 13.5%, diluted by the rapid scaling of lower-margin API business, which surged 2,736% to RMB 825 million. Management acknowledged the company still trails Anthropic by approximately 17 months, fueling debate over valuation support at around HKD 550 billion market cap. Despite multiple brokerages raising target prices — JPMorgan to HKD 2,000 and CMBI to HKD 1,985 — the near-term selling pressure reflects investor concerns over profitability trajectory and margin compression amid the ongoing business model transition.

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