Analysis of Huaxin Holdings (01657.HK) Phenomenon on Hong Kong Stock Market Hot List

Event time: December 23, 2025 16:30:02 (UTC+8). Huaxin Holdings released an interim results warning 5 days earlier (December 18), which was the core driving factor for its appearance on the Hong Kong Stock Surge List of East Money App this time.

This analysis is based on data from the Hong Kong Stock Surge List of East Money App [1]. Huaxin Holdings (01657.HK) became a popular stock on December 23, 2025. The interim results warning released by the company on December 18 shows that the interim loss as of October 31, 2025 is expected to narrow from approximately HK$9 million in the same period last year to no more than approximately HK$6 million [2]. Performance improvement is due to increased revenue and gross profit from apparel products, rising sales volume and revenue to major UK customers, and reduced impairment provisions for trade receivables. Due to low stock liquidity, the lagged spread of positive news has attracted retail attention. Key risks include insufficient liquidity, continuous losses, and reliance on a single customer.

Huaxin Holdings (01657.HK) is a Hong Kong-listed enterprise. Due to low stock liquidity, public data tools did not return its current price [2].

The core reason for Huaxin Holdings’ appearance on the Hong Kong Stock Surge List of East Money App is the

1. Increased revenue and gross profit from apparel products;
2. Rising number of sales orders and revenue supplied to major UK customers;
3. Reduced impairment loss provisions for trade receivables.

Since it is a low-liquidity stock, public data tools could not obtain detailed price and volume data around December 23 [2]. However, combined with its “surge list” attribute, it can be inferred that there has been a significant price increase recently, along with a notable expansion in trading volume compared to usual.

• Retail sentiment
  : Appearing on the East Money App hot list indicates a significant rise in retail investors’ attention to this stock;
• Institutional participation
  : No public institutional transaction data, and the low liquidity feature may mean the main participants are retail investors.

1. Liquidity affects information dissemination
   : Due to low stock liquidity, the positive results warning triggered market attention and drove the stock price to surge after a 5-day lag, reflecting the characteristics of information dissemination for low-market-cap stocks;
2. Retail-dominated trading
   : In low-liquidity markets with a lack of institutional participation, retail sentiment and attention are often core drivers of short-term price fluctuations;
3. Risk of reliance on a single customer
   : Although the major UK customer drove performance improvement, the business structure highly dependent on a single customer brings significant uncertainty to the company’s future performance.

1. Liquidity risk
   : The stock has a small market cap and inactive trading, with risks of large bid-ask spreads and difficulty in liquidation [2];
2. Profit uncertainty
   : Although the interim loss has narrowed, the company is still in a loss position, and future profit prospects remain to be seen [2];
3. Reliance on a single customer
   : Revenue growth mainly depends on the major UK customer; if there are changes in this customer’s business, it may have a significant impact on the company’s performance [2].

The results warning shows signs of improvement in the company’s operating conditions; growth in the apparel business and stable cooperation with major customers may lay the foundation for future profitability.