(Yicai Global) Nov. 5 -- Shares of Meinian Onehealth Healthcare Holdings fell by the daily exchange-imposed limit after Alibaba Group Holding further reduced its stake in the provider of medical examination services.

Meinian Onehealth [SHE: 002044] closed 10 percent lower today at CNY12.38 (USD1.86) a share, bringing its decline this week to 28 percent.

Chinese e-commerce giant Alibaba had sold about 54 million Meinian shares as of Nov. 3, accounting for 1.4 percent of its total outstanding shares, the Shanghai-based private clinic operator said in a statement yesterday

Other investors also sold Meinian, according to stock exchange data. Five sold CNY547 million (USD82.3 million) worth of its shares, while two invested CNY303 million (USD753 million) yesterday

Alibaba spent nearly CNY5 billion for a 10.82 percent in October last year, becoming Meinian’s second-largest shareholder. Alibaba trimmed that to 9.4 percent at the end of this year’s third quarter and to about 8 percent after the latest divestment

Meinian’s statement did not give any reasons for Alibaba's move. Market insiders speculate that the firm’s poor performance may be one of the reasons.

Meinian lost CNY520 million between January and September due to the coronavirus pandemic, compared with a CNY391 million net profit a year earlier, according to an earnings report it released on Oct. 31. Revenue slumped 29.6 percent to CNY4.42 billion.

For the whole of this year, the company said it expects to make CNY10 million to CNY30 million, down from CNY821 million in 2019.