Guangzhou Automobile reports significant decline in first half 2025 profits

Guangzhou Automobile Group Co., Ltd. announced a net loss attributable to shareholders of 2.538 billion yuan for the six months ended June 30, 2025, a significant decrease of 267.39% year-on-year. Basic earnings per share were -0.25 yuan, down 278.57% from the previous year. Revenue for the period decreased by 7.88% to 42.611 billion yuan, primarily due to fierce competition and a decline in automobile sales volume, which fell by 12.48% to 755.3 thousand units.

The Group's gross profit turned negative, amounting to 1.849 billion yuan, a decline of 3.650 billion yuan year-on-year, and the gross profit margin decreased by 8.23%. Selling and distribution costs increased by 123 million yuan, mainly due to increased advertising for new vehicle models. Finance costs also rose by 16 million yuan, while interest income decreased by 118 million yuan.

Despite the challenging performance, investments in joint ventures and associates increased by 14.06% to 34.357 billion yuan, driven by new additions and capital increases, although the share of net profit from these entities decreased by 88 million yuan to 1.923 billion yuan. The Group also completed a share repurchase plan in the first half of 2025, totaling approximately 900 million yuan.