YOFC's stock price plunged 9.36% during intraday trading on Thursday. The sharp decline followed the release of the company's first-quarter financial results.

The selloff was triggered by YOFC's Q1 earnings report, which revealed that while the company posted strong year-over-year growth, its performance fell short of market expectations. YOFC reported revenue of RMB 3.695 billion, up 27.7% year-over-year, and net profit attributable to shareholders of RMB 495 million, up 226.4% year-over-year. However, this net profit figure was meaningfully below the sell-side consensus range of RMB 640-720 million, disappointing investors who had anticipated stronger margin expansion from recent product price increases.

Analysts noted that higher-than-expected research and development costs, along with expenses related to overseas expansion, appeared to have weighed on net margins, offsetting the benefits from price increases. The company indicated that product price increases remained a primary growth driver and emphasized its continued focus on AI-driven connectivity demand.