Shanghai (ZXZC)- On Monday, Haima Automobile shares posted the sharpest fall in the past two years, plummeting by 9.64 percent at RMB 4.22 and vaporizing RMB 680 million in market value.

The expected substantial loss may be the reason for its shares drop. On January 26, the automaker said in a statement that it estimated a loss of RMB 940 million to RMB 1.04 billion for 2017 while the year before saw a profit of RMB 230 million. The basic earnings per share are predicted to be a loss of RMB 0.57 to RMB 0.63 while the figure was a profit of RMB 0.14 in 2016. It will be the first annual loss for the automaker since 2010.

The sharp year-on-year drop in vehicle sales was the main reason for the financial result. Last year, Haima produced 134,600 vehicles, down 39 percent from a year earlier while its sales totaled 140,400 units, falling 35.13 percent year on year. What’s more, since Haima adopted category strategies, it stopped the development of part of its products or projects, which is also attributed as one reason for the annual loss.