HK Stock Connect Insight | YIDU TECH (02158.HK) Falls 23% Since Stock Connect Removal; Market Value Drops Below HKD 3 Billion

On October 26, 2026, the medical artificial intelligence theme traded divergently, and YIDU TECH (02158.HK) recovered. As of 14:00, the stock was quoted at HKD 2.915, up 1.22%, with a turnover of about HKD 1.6502 million and a market capitalisation of about HKD 2.973 billion based on the latest price. It touched a low of HKD 2.845 and a high of HKD 2.955 during the day, with an amplitude of 3.82%.

According to the data, YIDU TECH's share price over the past week (October 16 to October 26) bottomed out and then rebounded. It touched an intraday low of HKD 2.730 on October 23, a 52-week low, and halted the decline on October 26, touching an intraday high of HKD 2.955.

On September 7, the adjustment of the Hang Seng Composite Index took effect, and YIDU TECH (02158.HK) was removed from the index, and was accordingly removed from Stock Connect. From the effective date, mainland Stock Connect investors can only sell, and cannot newly open buy positions.

Public information shows that Yidu Technology Co., Ltd. listed on the Main Board of HKEX on January 15, 2021 at an offer price of HKD 26.30, with a board lot of 100 shares, raising net proceeds of about HKD 3.902 billion from its global offering; the Hong Kong public offering was about 1,633.84 times subscribed, with about 1.174 million applicants. Tencent, the Canada Pension Plan Investment Board and other institutions participated as cornerstone investors in the global offering. The company provides medical solutions based on artificial intelligence and big data technologies, with YiduCore as its core infrastructure, and operates three segments: big data platform and solutions, life sciences solutions, and health management platform and solutions.

In terms of its Stock Connect history, on May 21, 2021, Hang Seng Indexes Company announced the results of its quarterly review, increasing the number of Hang Seng Composite Index constituents from 502 to 506, and YIDU TECH was included, with the changes taking effect on June 7; on the same day, the Shenzhen Stock Exchange published an announcement, and the company was accordingly added to Stock Connect. On June 7, 2021, the day it joined Stock Connect, the stock closed at HKD 38.79. On its listing debut, the stock closed at HKD 65.20, up 147.91% from the offer price, with a market capitalisation of about HKD 58.8 billion.

As for the basis for removal, this adjustment was based on the review data as at June 30, 2026, when the stock closed at HKD 4.592 and its total market capitalisation stood at about HKD 4.9 billion based on issued shares; as at October 26, the total market capitalisation had fallen to about HKD 2.973 billion, below the HKD 4 billion market capitalisation threshold for small-cap Stock Connect eligible securities. Hang Seng Indexes Company did not specify a reason for the removal.

After the removal, YIDU TECH's share price has fallen 23.1% cumulatively from its September 7 close of HKD 3.790 to date, touching an intraday low of HKD 2.730 on October 23; it is down 92.5% cumulatively from the HKD 38.79 close on June 7, 2021, when it joined Stock Connect, and down 88.9% cumulatively from the offer price of HKD 26.30.

On the operating side, the company's financial year ends on March 31. In the 2026 financial year (the year ended March 31, 2026), the company's total revenue was RMB 819.3 million, up 14.6% year on year; the gross margin rose from 33.5% to 36.4%; annual profit was RMB 78.8 million, compared with a net loss of RMB 135 million in the prior year, marking the first full-year profit since its establishment. On cash flow, net cash used in operating activities for the full year narrowed 91.2%, and net operating cash flow turned positive in the second half, at RMB 29.3 million. In the first half of the 2026 financial year, total revenue was RMB 358 million, up 8.7% year on year; the loss for the period was RMB 16 million, narrowing 72%; adjusted EBITDA was about RMB 54 million, double the prior-year level.

On business metrics, as at March 31, 2026, YiduCore had cumulatively processed and analysed nearly 9 billion authorised real-world medical records, covering more than 1.32 billion patient visits; the big data platform and solutions segment provided solutions to 133 leading Chinese hospitals and 54 regulators and policy makers, covering more than 12,000 hospitals; the life sciences solutions segment served 98 customers, including 17 of the top 20 multinational pharmaceutical companies, and had completed 516 clinical studies. As at the end of September 2025, the company's cash reserves stood at nearly RMB 3.7 billion.

In terms of products and business developments, the company launched the clinical evidence AI agent "Yidu Zhixun" in 2026, which attracted more than 6,000 medical professionals during internal testing, with its evidence engine deployed in more than 40 tertiary hospitals and involved in more than 500,000 diagnostic and treatment decisions; "Clinical Copilot" is called nearly 1,000 times a day at the Sun Yat-sen University Cancer Center, covering about 70% of medical staff. During the year, the company won the bid for the AI construction bank-medical cooperation project of Peking University Cancer Hospital (about RMB 4.88 million) and the Hainan provincial regional infectious disease surveillance, early warning and emergency command information platform (phase II) project (nearly RMB 12.89 million). In addition, the company launched its annual repurchase programme on January 26, 2026, and had completed 22 repurchases totalling more than HKD 150 million by early March.

Citi noted in a research report that, under the policy backdrop of advancing "AI plus healthcare", the company has deeply participated in national-level AI medical application pilot projects in Beijing, Henan and other regions; its business segments serving governments and hospitals show more predictable profitability and benefit directly from higher hospital AI budgets and national project tenders; the policy calls for building several national-level pilot bases by 2027 and achieving broad AI technology coverage in secondary and higher-level hospitals by 2030, providing a clear growth path for the company's business expansion.