SANHUA (02050) experienced a significant plunge of 5.28% in intraday trading, continuing its downward trend that has seen the stock retreat more than 20% from its yearly high. The sharp decline comes in the wake of a recent Goldman Sachs report on China's humanoid robot supply chain, which has raised questions about the immediate growth prospects of companies in this sector.

The Goldman Sachs report, based on on-site research of nine Chinese robotics industry companies including SANHUA, highlighted that while these firms are aggressively expanding production capacity both domestically and overseas, none have confirmed substantial firm orders or provided clear mass production timelines. This revelation has likely contributed to investor concerns about the near-term revenue potential of SANHUA's robotics business.

SANHUA, which previously denied rumors of a RMB 5 billion robot order from Tesla, has been developing its robotics business based on its core "thermal management" technology. The company has acquired approximately 200,000 square meters of land in Thailand specifically for humanoid robot actuator assembly, indicating its commitment to this emerging market. However, the lack of confirmed orders, as noted in the Goldman Sachs report, may be causing investors to reassess the company's short-term growth prospects, leading to the current sell-off.