GAC Group's stock experienced a significant decline of 5.05% during intraday trading on Thursday, reflecting investor concerns following the release of the company's latest financial report.

The sharp drop comes after the company reported its first-quarter results, which showed a net loss of RMB 656 million. More critically, UBS noted in a research report that after excluding one-time items, the adjusted net loss for the first quarter was approximately RMB 1.4 billion, representing an 89% year-on-year expansion. The report highlighted that although sales showed some recovery, the decline in average selling price and gross profit margin, coupled with the widened loss, was disappointing. UBS believes that amid intense domestic competition for its own brands and weak growth from joint venture brands, the company's profitability is expected to continue facing pressure.