Chery Automobile (9973) Q2 2026 earnings summary

Executive summary

• Achieved revenue of RMB143,280 million for the six months ended 30 June 2026, up 1.2% year-over-year, driven by stable passenger vehicle sales and growth in automotive parts and overseas markets.

• Gross profit rose 25.1% to RMB23,044 million, with gross margin improving to 16.1% from 13.0% due to higher-margin overseas sales and technology services.

• Net profit declined 9.0% to RMB9,016 million, with net margin at 6.3%, reflecting higher R&D and administrative expenses and lower other income.

• Maintained strong global expansion with a diversified multi-brand strategy, operating 12 major production bases worldwide, including 3 overseas.

• Enhanced competitiveness through technological innovation, operational efficiency, and global product appeal.

Financial highlights

• Revenue: RMB143,280 million (+1.2% year-over-year); passenger vehicles contributed 89.9%.

• Gross profit: RMB23,044 million (+25.1%); gross margin: 16.1% (+3.1pp year-over-year).

• Net profit: RMB9,016 million (-9.0%); profit attributable to owners: RMB8,567 million (-11.7%).

• R&D expenses: RMB6,672 million (+28.3%); administrative expenses: RMB3,288 million (+24.1%).

• Finance costs: RMB549 million (-62.1%); other income and gains: RMB6,028 million (-27.1%).

Outlook and guidance

• Plans to expand product lineup, sharpen brand positioning, and invest in next-generation technologies in H2 2026.

• Focus on vehicle electrification, intelligentization, and global market expansion to solidify overseas leadership.