WL DELICIOUS (09985.HK) saw its stock price plummet by 5.92% in Friday's trading session, despite reporting strong financial results for the fiscal year. The sharp decline appears to be primarily driven by the unexpected announcement of CEO Sun Yinong's resignation.

The company reported impressive financial figures for the fiscal year, with revenue reaching RMB 6,266.3 million and net income of RMB 1,068.1 million. The gross margin stood at a healthy 48.1%, while basic earnings per share came in at RMB 0.46. Additionally, WL DELICIOUS proposed a final dividend of RMB 0.11 per ordinary share and a special dividend of RMB 0.18 per ordinary share, signaling confidence in its financial position.

However, the positive financial news was overshadowed by the announcement that Sun Yinong would be stepping down from his roles as Executive Director and CEO. The company stated that Liu Fuping would be appointed as the new CEO, effective April 30, 2025. This unexpected leadership change appears to have unsettled investors, leading to the significant drop in stock price despite the otherwise strong performance indicators.