Brilliance China Automotive (1114) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 rose 8.4% year-over-year to RMB561.7 million, driven by increased orders from electric and hybrid vehicle manufacturers, partially offset by lower auto financing revenue.

• Gross profit margin declined to 16.6% from 20.0% due to higher initial setup costs for new orders and insufficient sales to cover fixed costs after production upgrades.

• Profit attributable to equity holders increased to RMB1,701.4 million, with basic EPS at RMB0.33723, up from RMB0.29201 in the prior year period.

• Share of profit from BMW Brilliance Automotive (BBA) fell 25% to RMB2,051.6 million as BBA's local sales volume dropped 16.7%.

• The Group declared a special dividend of HK$1.0 per share and an interim dividend of HK$0.8 per share for 2025.

Financial highlights

• Revenue: RMB561.7 million (+8.4% YoY); Gross profit: RMB93.5 million (-9.7% YoY); Gross margin: 16.6%.

• Profit before tax: RMB1,906.3 million (-35.1% YoY); Net profit: RMB1,654.2 million (+12.9% YoY).

• Cash and cash equivalents: RMB5,857.0 million (down from RMB10,539.6 million at year-end 2024).

• Gearing ratio: 0.07 (down from 0.08 at year-end 2024).

• Capital expenditures: RMB1,248.5 million in H1 2025.

Outlook and guidance

• The Group expects continued stable growth in China's economy and automotive market, with a focus on new energy vehicles and digitalization.

• BBA is preparing for the launch of the Neue Klasse model in 2026 and continues to introduce new models tailored for the Chinese market.

• JSA aims to ramp up production and optimize sales channels, while BBAFC seeks new business models and funding sources amid intensified competition.

• Mianyang Ruian and Ningbo Yumin to focus on new product development, cost control, and overseas expansion.