Chery Auto's stock plummeted 5.24% intraday, underperforming the broader market and automotive sector peers.

The sharp decline was triggered by the release of the company's weaker-than-expected first-quarter financial results. Chery Auto reported a 3.45% year-over-year drop in revenue to RMB 65.87 billion, while net profit fell 8.55% to RMB 4.322 billion. Profit attributable to shareholders declined 10.32% to RMB 4.17 billion.

Despite an improvement in gross margin, operating expenses surged significantly, with selling and distribution expenses up 24.82%, administrative expenses up 17.28%, and R&D expenditure rising 25.44% to RMB 2.85 billion. These increased costs offset margin gains and pressured bottom-line performance, leading to investor disappointment and the stock's sell-off.