Shares of Paradise Entertainment (01180.HK) plummeted 5% in early trading on Friday, despite the company reporting strong financial results for the fiscal year. The sharp decline comes in the wake of a significant management change, raising concerns among investors about the company's future direction.

Paradise Entertainment announced a revenue of HK$1.08 billion for the fiscal year, with a profit attributable to shareholders of HK$361.1 million. The company also recommended a final dividend of HK11.0 cents per share, signaling confidence in its financial position. However, these positive financials failed to prevent the stock's downturn.

The market's negative reaction may be attributed to the unexpected management shake-up announced alongside the financial results. Jay Chun has been re-designated as Chairman, while Zhang Jianjun has resigned from his positions as Executive Director and Co-Chairman. This sudden change in leadership structure appears to have overshadowed the company's strong financial performance, leading to investor uncertainty and the subsequent stock price drop.