Guangzhou Automobile Group (601238) Q2 2026 earnings summary

Executive summary

• Revenue rose 9.13% year-over-year to RMB46.5 billion for the six months ended 30 June 2026, driven by increased sales of self-developed brand vehicles.

• Net loss attributable to shareholders widened 75.98% year-over-year to RMB4.467 billion, with basic loss per share at RMB0.44.

• Sales volume increased 2.35% year-over-year to 773,100 units, outpacing the industry despite a challenging market.

• NEV sales surged 68.8% year-over-year, now comprising 33.65% of total sales; energy-efficient vehicles and NEVs together accounted for 62.82% of sales.

• International business accelerated, with exports of self-developed brands up 132% year-over-year to 121,500 units, covering 110 countries and regions.

Financial highlights

• Gross loss increased to RMB1.975 billion (gross loss margin: -4.25%), compared to RMB1.849 billion last year.

• Selling and distribution costs rose 17.45% to RMB3.056 billion; administrative expenses up 12.08% to RMB2.867 billion.

• Finance costs increased 40.88% to RMB478.6 million, mainly due to new borrowings and bond issuance.

• Share of net profit from joint ventures and associates fell 31.05% to RMB1.326 billion.

• Cash and cash equivalents rose 40.02% to RMB33.386 billion, supported by bond issuance.

Outlook and guidance

• Focus remains on value-based competition, user-centric reforms, and accelerating internationalisation.

• Plans to launch several new models in the second half of 2026 and expand to 1,000 county-level stores.

• Targeting annual overseas sales surpassing 1 million units by 2030, with continued investment in NEVs and global expansion.