CHERY AUTO's stock fell sharply by 5.02% during intraday trading, extending losses from the previous session. The continued selling pressure comes as investors react to the company's recently released first-quarter financial results.
The automaker reported revenue of RMB 65.87 billion for Q1 2026, representing a 3.45% year-over-year decline. Net profit attributable to the parent company dropped 10.32% to RMB 4.17 billion compared to the same period last year. While gross profit rose 24.9% to RMB 10.56 billion, this improvement was offset by significantly increased expenses across multiple categories.
Profitability was eroded by elevated spending, with R&D expenses climbing to RMB 2.85 billion, selling and distribution costs rising to RMB 2.7 billion, and other expenses increasing to RMB 980 million. The stock had already declined over 6% in the previous trading session immediately following the earnings release, and the continued weakness suggests investors remain cautious about the company's cost trajectory and top-line momentum.
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