GAC Group announces significant asset impairment, reports substantial loss

Guangzhou Automobile Group (GAC Group) has announced a RMB 526 million provision for asset impairment for the first half of 2025, primarily due to inventory depreciation. This provision will decrease the company's total profit for the reporting period by RMB 526 million.

The asset impairment decision aligns with GAC Group's latest half-year financial report, which shows a total operating revenue of RMB 42.165 billion, a decrease of 7.95% compared to the previous year. The total profit for the period was a loss of RMB 3.925 billion, a significant drop of 435.37% year-over-year. The net profit attributable to shareholders also saw a substantial decrease of 267.39%, reaching a loss of RMB 2.538 billion. This is largely attributed to intense domestic automotive market competition, rapid demand structure upgrades, and a 12.48% decrease in vehicle sales to 755,300 units.

The company's board of directors and audit committee have approved the asset impairment, confirming its compliance with accounting standards and policies. Additionally, GAC Group's half-year report details its R&D efforts, including investments in new energy vehicle projects, and outlines a share repurchase plan and changes in the use of raised funds. The company is shifting unutilized raised funds from the "GAC Self-owned Brand Xinjiang Project" to the "GAC Self-owned Brand Vehicle Model Project" to enhance capital utilization.