Shares of MEIDONG AUTO (01268.HK) plummeted 5.06% in early trading on Thursday, following the company's announcement of its fiscal year financial results. The sharp decline comes as investors react to the substantial net loss reported by the Chinese auto retailer.

According to the financial report released after market close on Wednesday, China MeiDong Auto Holdings Ltd posted a net loss of RMB 2,258.8 million for the fiscal year. This significant loss appears to have overshadowed other financial metrics, including the company's gross profit of RMB 1,561 million and revenue of RMB 22,154 million.

Despite the considerable loss, MEIDONG AUTO has proposed a final dividend of RMB0.0445 per ordinary share. While this move might be interpreted as a signal of management's confidence in the company's future prospects, it seems insufficient to allay investor concerns about the firm's financial health. The stock's sharp decline indicates that market participants are prioritizing the bottom-line results over other factors, reflecting growing unease about the company's performance and outlook in China's competitive automotive market.