Shares of Chinese companies, including Sos Ltd - ADR (NYSE:SOS), are trading lower. Concerns over COVID-19 cases in China, as well as U.S. market weakness, have pressured Chinese stocks today.
SOS Limited shares rallied Monday following a financial update from the company and have experienced profit-taking since. The company on Monday reported FY21 sales of $358.042 million, versus $50.317 million in FY20. SOS Limited also saw FY21 gross profit of $21.07 million, versus a gross profit of $12.994 million in FY20.
In July 2021, due to the Chinese government's ban on certain types of cryptocurrency mining activities, SOS Limited shut down the company's mining operations in China and began transitioning crypto mining operations to the U.S. The company launched its U.S. mining operations in Wisconsin this April.
Meanwhile, the COVID-19 lockdown in Shanghai and other parts of China has weighed on the broader Chinese economy and Chinese stocks in recent months. The IMF in April downgraded China’s growth forecast to 4.4% from 4.8%, citing pain from its coronavirus restrictions.
Shares of multiple Chinese companies have seen volatility in 2022 and are trading lower on a year-to-date basis following reports the SEC has identified multiple US-listed ADRs as having not adhered to the Holding Foreign Companies Accountable act. The continued Russia-Ukraine conflict could also be impacting Chinese stocks.
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SOS Limited is engaged in the provision of emergency rescue business providing emergency healthcare services, emergency roadside assistance, emergency living assistance, and other rescue services in China.
According to data from Benzinga Pro, SOS Limited has a 52-week high of $4.73 and a 52-week low of $0.38.
