On June 8, Sanhua Intelligent Controls (02050.HK) fell 3.71% in regular trading, trading at HKD 30.42/share, with trading volume of HKD 113 million. The stock has now declined over 26% from its historical high, as the aftermath of a controversial executive share reduction and weakening fundamentals continue to pressure the stock.

The sell-off stems from a series of disclosures at a late-May earnings briefing, where the company revealed that Chairman Zhang Yabo cashed out approximately RMB 4.2 billion for personal investment needs, while five other senior executives collectively sold RMB 14.8 million in shares, citing children's education expenses and living costs. The timing — just three trading days after the stock hit its all-time high of RMB 60.77 following a 163% rally — drew sharp market criticism. Meanwhile, Q1 results showed a dramatic growth deceleration: revenue rose only 1.36% year-over-year to RMB 7.77 billion, and net profit grew just 2.68%, compared to double-digit growth throughout the prior year. The company's robot business, which underpinned its valuation premium, remains in the R&D and sampling stage with no meaningful revenue contribution.

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