HK Stock Connect Insight | SYNAGISTICS (02562.HK) Falls About 50% Since Stock Connect Removal; Launched Enterprise AI Platform Geene 2.0 on July 22

On November 2, 2026, the cross-border e-commerce and AI application theme traded divergently, and SYNAGISTICS (02562.HK) edged higher. As of 13:29, the stock was quoted at HKD 0.385, up 1.32%, with a turnover of about HKD 595,500 and a market capitalisation of about HKD 180 million based on the latest price.

According to the data, SYNAGISTICS' share price over the past week (October 23 to November 2) remained under pressure. It touched an intraday low of HKD 0.355 on November 2, its 52-week low.

Over a longer horizon, SYNAGISTICS fell about 24.5% in the past month, about 73.1% in the past three months and about 95.6% over the past 52 weeks. The share price has continued to decline from its post-listing high of HKD 50.050, and the current market capitalisation of HKD 180 million is less than 5% of the HKD 4 billion removal threshold for small-cap Stock Connect eligible securities.

On September 7, the adjustment of the Hang Seng Composite Index took effect, and SYNAGISTICS (02562.HK) was removed from the index, and was accordingly removed from Stock Connect. On the same day, the Shenzhen Stock Exchange announced an adjustment to the list of eligible securities under Stock Connect, with SYNAGISTICS among those removed. From the effective date, mainland Stock Connect investors can only sell, and cannot newly open buy positions.

It is understood that SYNAGISTICS listed on the Main Board of HKEX on October 30, 2024 through Hong Kong's first special purpose acquisition company business combination (de-SPAC), formed by the merger of the SPAC HK Acquisition Corporation and the Southeast Asian digital commerce platform Synagistics, at HKD 10.00 per share, with a board lot size of 500 shares; it opened at HKD 20.000 on its debut, touched an intraday high of HKD 50.050 and closed at HKD 17.820. On February 21, 2025, Hang Seng Indexes Company announced the results of its quarterly review as at December 31, 2024, and the company was included in the Hang Seng Composite Index, and was added to Stock Connect from March 10, 2025. The company has 467 million issued shares (as at October 31, 2026).

In terms of the share price's historical trajectory, the company was added to Stock Connect on March 10, 2025, closing at HKD 22.300 that day, equivalent to a market capitalisation of about HKD 10.4 billion based on the current 467 million issued shares. The share price has since continued to fall; during its time as a Stock Connect eligible security, the market capitalisation dropped from about HKD 10.4 billion to the current HKD 180 million, a cumulative decline of about 98.3%, while the share price is down 98.3% from its close on the day of inclusion.

Public information shows that SYNAGISTICS' main business is data-driven digital commerce solutions in Southeast Asia, providing brand partners with services covering channel operations, digital marketing, data analytics and cross-border fulfilment through two models, direct-to-brand (D2B) and direct-to-consumer (D2C), with operations covering six major economies — Singapore, Malaysia, the Philippines, Vietnam, Thailand and Indonesia — and more than 600 brands served cumulatively. In the first half of 2026, the company's total revenue was SGD 39.80 million, up 11.6% year on year, with the D2B model remaining the main contributor to gross profit.

In the first half of 2026, the company's gross profit was SGD 9.90 million, up 5.4% year on year, with a gross margin of about 24.9%; net loss was SGD 17.50 million, narrowing 39.2% from SGD 28.80 million a year earlier, which the company attributed mainly to its continued focus on operating efficiency and cost optimisation, as well as the absence of certain non-cash and non-recurring expenses recognised in the prior period.

On new business and funding, the company continues to advance its transformation towards a higher-margin, asset-light and technology-driven D2B business model, which remained the main contributor to gross profit during the period. On cash reserves, as at June 30, 2026, the company's cash and cash equivalents were SGD 22.29 million, down 70.7% from SGD 76.20 million as at December 31, 2025.

In terms of products and business developments, SYNAGISTICS entered into a strategic cooperation with MEI AH ENTER (00391.HK) on June 11 this year to launch the AI-driven brand "MASYN", promoting consumer brand incubation through AI-generated content and cross-border e-commerce capabilities; on July 22 it launched the enterprise intelligent ecosystem Geene 2.0, jointly developed by its brand Synagie and 11 founding partners including BytePlus, China Mobile International and MEI AH ENTER, provided on a software-as-a-service basis and officially commercialised on August 8; in the same month, "Asian Palace Durian" landed as the first commercial deployment of Geene 2.0, integrating demand analysis, AI-generated commercial content and blockchain-based traceability verification.