Horizon Robotics-W (09660) saw its stock price plummet 5.02% during intraday trading on Wednesday, reflecting persistent investor concerns.

The sharp decline follows the company's recent annual report which revealed significant financial challenges. Horizon Robotics reported a net loss of RMB 10.469 billion, swinging from profit to loss, while operating losses widened to RMB 3.339 billion. More critically, the product business gross margin dropped from 46.4% to 34.5%, representing a decline of nearly 12 percentage points that raises questions about near-term profitability.

Market sentiment remains cautious despite the company's recent initiatives, including open-sourcing its HoloMotion-1 robot cerebellar model and executing share buybacks exceeding HK$270 million. Additional mid-to-long-term risks stem from OEM customers pursuing in-house chip development, maintaining valuation pressure on the stock.