Guangzhou Automobile Group (2238) investor relations material

Executive summary

• Revenue declined 10.43% year-over-year to RMB96.54 billion, with a net loss attributable to shareholders of RMB8.78 billion, reversing a profit in 2024.

• Gross loss of RMB5.43 billion versus a gross profit of RMB2.44 billion last year, with gross margin dropping to -5.62%.

• Annual vehicle sales volume fell 14.06% to 1.72 million units, with self-developed brands down 22.83%.

• No final dividend proposed for 2025 due to the net loss.

Financial highlights

• Cost of sales decreased 3.21% year-over-year to RMB101.97 billion.

• Selling and distribution costs rose 8.75% to RMB5.89 billion, while administrative expenses fell 7.68% to RMB5.39 billion.

• Finance costs increased 13.5% to RMB638.9 million; interest income dropped 29.6%.

• Net cash outflow from operating activities was RMB16.20 billion, compared to an inflow of RMB8.30 billion last year.

• Cash and cash equivalents at year-end were RMB23.84 billion, down from RMB36.48 billion.

Outlook and guidance

• Industry expects moderate growth in 2026, with China's total auto sales forecast to rise 1% and NEV sales up 15.2%.

• Strategic focus on stabilizing joint ventures, fortifying independence, and expanding the ecosystem.

• Emphasis on product innovation, cost control, digital transformation, and global expansion.