On August 24, BLOKS fell 5.06% in regular trading, trading at HK$75.15 per share, with turnover of approximately HK$29.72 million.

The decline was driven by lingering concerns over gross margin compression and broader weakness in Hong Kong-listed new consumer stocks. The company's interim results revealed H1 revenue of RMB 17.76 billion, up 32.7% year-over-year, and net profit of RMB 3.87 billion, up 30.5%. However, gross margin declined 4.1 percentage points to 44.3%, primarily due to a higher contribution from RMB 9.9 value products, increased mold depreciation from new SKU launches, and rising licensed IP amortization costs.

Additionally, the Hong Kong new consumer sector has seen sustained selling pressure recently, with multiple peers declining in tandem. BLOKS had accumulated over 50% gains within the prior month, heightening short-term pullback risk. Several brokerages including Citi and CICC maintained buy ratings, citing expected margin recovery in H2 as product mix stabilizes and overseas expansion continues, though near-term amortization headwinds remain.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)