JOINN Laboratories' stock plummeted 7.82% during intraday trading. The sharp decline followed the release of the company's first-quarter financial results, which revealed a profit surge largely driven by non-operational gains rather than core business performance.

Market sentiment turned negative as investors scrutinized the earnings report. While the company reported a 479.67% year-over-year surge in net profit, this growth was primarily attributable to approximately 246 million RMB in net gains from fair value changes of biological assets. In contrast, the core laboratory services segment posted a net loss of 28.46 million RMB, representing a 15.13% decline from the previous year.

The selloff reflects growing skepticism about the quality of the earnings, with the headline profit figure masking underlying operational weakness in the company's core business. Additionally, the company's full-year revenue declined 17.88%, indicating broader challenges in the non-clinical research services sector which is undergoing a cyclical adjustment. The movement occurred alongside declines in sector peers, suggesting industry-wide pressure.