Biren Technology's stock plummeted 5.13% during intraday trading on Thursday, as the market reacted negatively to the company's latest annual financial results.

The sharp decline comes despite the company reporting that its annual revenue more than tripled year-over-year to RMB 1.035 billion, marking the first time it has surpassed the RMB 1 billion milestone. However, investors focused on the concerning details: research and development expenditure surged 78.5% to RMB 1.476 billion, significantly exceeding total revenue, and the company continued to record an overall net loss for the period.

Market participants appear to be digesting the contrasting signals of rapid top-line growth against heavy ongoing investment that has yet to translate into profitability, leading to increased selling pressure during the session.