Hong Kong Stock Market News | TUHU-W drops more than 5%. Analysts believe that the car maintenance market is not yet stable, and price wars may affect TUHU-W's profitability in car maintenance.

Zhitong App learned that TUHU-W (09690) fell more than 5%, with a drop of 5.34% at the time of publication, at HKD 24.8, with a turnover of HKD 11.23 million. On the news front, according to media reports, Shanghai Lantu Information Technology Co., Ltd. (the parent company of TUHU-W) has filed a lawsuit with the Minhang District People's Court in Shanghai, requesting that three defendants, including Beijing Qiguangxing Information Technology Co., Ltd. (JD), compensate them with CNY 5 million. The reason for the lawsuit is that JD's previous promotion of "Shock Tiger Price" has had an impact on the plaintiff's reputation, and TUHU-W claims that the defendants should delete all references to "Shock Tiger Price" across all channels. It is reported that in mid-September last year, JD launched "Shock Tiger Price," covering products such as tires, maintenance, accessories, and batteries. Chen Haifeng, Vice President of JD's Retail Automotive Division and General Manager of the All-Channel Automotive Business Department, once stated that Chinese consumers currently face many pain points when it comes to car maintenance, such as "spending a lot of money but not getting good results." JD's introduction of "Shock Tiger Price" is not intended to disrupt the industry through price wars, but rather to meet user needs by offering high-quality, low-priced products. Previously, senior industry analyst Liang Zhenpeng believed that the market structure of the car maintenance industry has not yet stabilized, and JD hopes to gain more market share and users through market competition. "JD has the support of JD-SWR and has certain financial advantages. Price wars may affect TUHU-W's profit performance in car maintenance," said an industry insider to the Times Weekly reporter.