(Yicai Global) Jan. 20 -- The stock price of Dong-E-E-Jiao tumbled today after China's largest donkey-hide gelatin producer said it expects to report its first annual loss since going public in 1996, prompting its president to hand in his resignation letter.

Dong-E-E-Jiao's shares [SHE:000423] fell 6.8 percent to CNY34.44 (USD5.02) this morning. That is the lowest since early December. 

Net loss is likely to stand between CNY334 million and CNY459 million (as much as USD66.9 million) for 2019, the Shandong province-based company said in a statement yesterday. The firm will reduce its inventory this year in an attempt to improve its performance. 

On the same day, Dong-E-E-Jiao said that Qin Yufeng has sought to retire after nearly five decades of service. The company's latest chairman also quit last November, without a successor.

Dong-E-E-Jiao has suffered from declining sales amid price hikes. Its flagship product, which is believed by Chinese traditional medicine to have health benefits, sells for 25 times the pre-initial public offering price. Meanwhile, the clientele is getting older.

Founded in 1952, Dong-E-E-Jiao is one of the few players in China's market for donkey-hide gelatin.

Editor: Emmi Laine