Brilliance China Automotive (1114) investor relations material

Executive summary

• Revenue rose 20.3% year-over-year to RMB675.8 million, driven by a surge in JSA minibus and multipurpose vehicle sales, partially offset by lower auto financing revenue due to increased competition.

• Gross profit margin declined to 10.0% from 16.6% year-over-year, impacted by higher raw material costs and a greater sales mix from JSA.

• Profit attributable to equity holders dropped 54.2% to RMB778.5 million, mainly due to a sharp decline in contributions from the BMW Brilliance Automotive (BBA) associate.

• Basic earnings per share fell to RMB0.15430 from RMB0.33723 year-over-year.

Financial highlights

• Gross profit decreased 27.6% to RMB67.7 million; cost of sales increased 29.9% to RMB608.1 million.

• Other income and gains rose 42.6% to RMB21.1 million, mainly from asset recoveries and lower disposal losses.

• Interest income dropped 73.0% to RMB21.1 million due to lower average cash balances.

• Selling expenses fell 52.7% and G&A expenses dropped 22.8% due to cost controls and absence of prior-year impairments.

• Net ECL allowance on loans and receivables surged to RMB23.3 million from RMB0.6 million.

• Share of profit from BBA associate fell 52.5% to RMB974.0 million; BBA vehicle sales dropped 18.8%.

• Profit before tax declined 60.0% to RMB763.2 million; income tax expense was RMB2.6 million, down from RMB252.0 million.

Outlook and guidance

• BBA to launch Neue Klasse platform and long-wheelbase BMW iX3 in 2H 2026, with focus on BEVs and digitalisation.

• JSA to accelerate new model launches, expand overseas, and deepen cooperation with Geely.

• BBAFC faces intense competition in auto finance, focusing on risk management and new business initiatives.

• Ningbo Yuming targets 20 new projects and national-level innovation recognition.

• Mianyang Ruian to prioritise NEV-related business and new OEM partnerships.