Zoomlion Heavy Industry's stock plummeted 5.10% during intraday trading on Thursday, as investors reacted negatively to the company's first-quarter financial results.

The decline was driven by a sharp drop in profitability despite revenue growth. Zoomlion reported Q1 revenue of RMB 12.952 billion, representing a 6.89% year-over-year increase, but net profit attributable to shareholders fell sharply by 37.30% to RMB 884 million. Adjusted net profit, excluding non-recurring items, also declined by 31.14% to RMB 602 million.

The weak earnings were attributed to significant increases in operating expenses and currency exchange losses. Selling, general, and administrative expenses rose substantially by 36.04% year-over-year, materially eroding profitability. Citigroup had previously removed Zoomlion from its "90-Day Positive Catalyst Watch List," anticipating that foreign exchange losses would weaken the company's first-quarter performance.