BAIC Motor (1958) H1 2024 earnings summary

Executive summary

• Achieved sales of 450,000 vehicles and consolidated revenue of RMB94.32 billion in the first half of 2024, with profit attributable to equity holders of RMB1.98 billion and EPS of RMB0.25.

• Revenue for the first half of 2024 was RMB94.3 billion, down 4.8% year-over-year, mainly due to declines in both oil-powered and new energy vehicle sales.

• Net profit attributable to equity holders decreased 30.5% year-over-year to RMB1.98 billion; basic EPS dropped from RMB0.36 to RMB0.25.

• The group sold 0.45 million vehicles wholesale and 0.476 million retail, with 38,000 vehicles exported, outperforming the market in export growth.

• R&D expenditure increased to RMB1.80 billion, focusing on off-road and next-gen electric platforms.

Financial highlights

• Revenue decreased 4.8% year-over-year to RMB94.32 billion, mainly due to lower sales of oil-powered and new energy vehicles.

• Net profit attributable to equity holders fell 30.5% year-over-year to RMB1.98 billion; basic EPS dropped from RMB0.36 to RMB0.25.

• Gross profit declined 9.1% to RMB18.69 billion, with gross margin pressure from both oil-powered and new energy vehicles.

• Net cash from operating activities was RMB11.53 billion, down 15.9% year-over-year.

• Cash and cash equivalents stood at RMB31.38 billion as of June 30, 2024.

Outlook and guidance

• Plans to enhance system capability and market share, focusing on off-road, SUV, mid-to-high-end hybrids, and overseas markets in the second half of 2024.

• Will adjust product lineup to expand high-value product sales and maintain strategic transformation.

• Each business segment to focus on quality, innovation, and export growth to achieve full-year goals.

• Beijing Brand to emphasize new launches and off-road competitiveness; Beijing Benz to consolidate its luxury market position.

• The group expects stable industry growth in the second half of 2024, driven by policy support and market potential.