HK Stock Connect Watch | Market Cap Continues to Fall: MING YUAN CLOUD (00909.HK) Below HKD 1.6 Billion After Stock Connect Removal

On October 13, 2026, MING YUAN CLOUD closed at HKD 0.805, down 1.83% on the day, with turnover of HKD 2.746 million and total market capitalisation of HKD 1.515 billion.

Data show that MING YUAN CLOUD's share price faced continued pressure over the past week. Across five trading days, the share price fell about 6.40% from HKD 0.860 to HKD 0.805, while market capitalisation declined from about HKD 1.619 billion to HKD 1.515 billion. The intraday low of HKD 0.800 on the day marked a new 52-week low.

Over a longer horizon, MING YUAN CLOUD fell about 26.15% over the past month, about 40.37% over the past three months and about 73.67% over the past 52 weeks. The share price has kept falling from its historical peak in the early period after its 2020 listing, and current market capitalisation is less than 40% of the HKD 4 billion threshold under the Stock Connect small-cap removal rules.

On September 7, 2026, the Hang Seng Composite Index adjustment took effect. MING YUAN CLOUD (00909.HK) was removed from the Hang Seng Composite Index and was accordingly removed from Stock Connect. From the effective date, mainland Stock Connect investors may only sell and cannot open new positions.

It is understood that MING YUAN CLOUD listed on the Main Board of HKEX on September 25, 2020 at an offer price of HKD 16.5. The company is directly listed on the HKEX Main Board and does not have an A+H share structure. On November 13, 2020, Hang Seng Indexes Company announced the quarterly review results as at September 30, 2020, under which MING YUAN CLOUD was included in the Hang Seng Composite Index and was admitted to Stock Connect from December 7, 2020. It has about 1.882 billion issued shares as at October 2026.

Looking at the historical share price trend, the company was admitted to Stock Connect on December 7, 2020, closing at HKD 44.5 that day with market capitalisation of about HKD 85.76 billion. The share price has since declined continuously as the real estate industry entered a period of deep adjustment, and market capitalisation fell from about HKD 85.76 billion at the time of admission to HKD 1.515 billion at present, a cumulative drawdown of about 98.2%.

CICC previously published a report predicting that MING YUAN CLOUD would be removed because its market capitalisation coverage ranking had fallen below the 96% coverage line of the Hang Seng Composite Index. That prediction was confirmed in the review results announced on August 21, 2026.

Public information shows that MING YUAN CLOUD's main business is real estate digitalisation solutions, providing SaaS subscription and ERP system services to real estate developers and industry chain participants through its two segments of cloud services and on-premise software and services. In the first half of 2026, cloud services revenue was RMB 451 million, accounting for 85.8% of total revenue and down 14.1% year on year; revenue from on-premise software and services was RMB 74.7 million, accounting for 14.2% of total revenue and down 7.9% year on year.

In the first half of 2026, the company's revenue was RMB 525 million, down 13.3% year on year. Operating quality nevertheless showed structural improvement: operating loss narrowed 20.6% year on year to RMB 52.05 million, total expenses fell 17.9% year on year, and selling, R&D and administrative expenses declined 20.2%, 15.7% and 13.7% respectively. Gross margin remained high at 79.2%. Customer value per account for the Yunke and project construction businesses rose 1.9% and 9.0% respectively against the trend.

On AI commercialisation, MING YUAN CLOUD's self-developed Qiming large model completed filing, and in the first half of 2026 contracted value for Yunke AI products reached about RMB 40 million, with cross-industry output including contracts with industrial customers such as CHERY AUTO. The overseas business has entered a stage of strategic focus, with a product matrix centred on the smart metering product VeriReader and the real estate marketing product AI Virtual Tour; overseas product contract value in the first half was about RMB 20 million. On cash reserves, as at June 30, 2026 the company held cash and cash equivalents, time deposits and restricted cash totalling about RMB 3 billion, with a current ratio of 4.90 times, a net cash position.

On product and business developments, MING YUAN CLOUD continued to advance the productisation of its AI capabilities during the year: the AI Cost Database for project management products has been commercialised; AI customer service can independently handle nearly 40% of work orders with 92% accuracy, and AI-assisted coding tools raised R&D team efficiency by 30%; the asset management and operations product line had covered 300 state-owned platform companies as at June 30; and the overseas business entered into cooperation with North America's Turing AI.

ZHONGTAI SECURITIES noted in a research report that MING YUAN CLOUD has established developed countries and regions as key future markets, in principle no longer entering new developing-country markets, and will prioritise replicating and expanding VeriReader in developed markets globally.