HANS CNC's stock plummeted 5.11% during intraday trading on Tuesday, as investor sentiment turned negative following the release of the company's first-quarter financial results.

The company reported robust top- and bottom-line growth for the quarter, with revenue surging 103.69% year-over-year to RMB 1.955 billion and net profit attributable to shareholders jumping 176.53% to RMB 323 million. This performance was primarily driven by sustained strong demand from AI computing centers and solid sales momentum for its high-value-added AI PCB equipment.

However, the positive earnings were overshadowed by a sharp deterioration in operating cash flow, which turned negative at RMB -646 million, representing a 92.50% year-over-year decline. This was mainly attributed to significant increases in inventory procurement, tax payments, and talent acquisition costs. Adding to the cautious sentiment, China International Capital Corporation Limited reduced its position by 480,000 shares prior to the report. The divergence between strong profit growth and weakening cash flow, coupled with the institutional selling, appears to have pressured the stock price in the short term.