Dongfeng Motor Group Company (489) H1 2025 earnings summary

Executive summary

• Revenue rose 6.6% YoY to RMB54,533 million, with gross profit up 28.0% to RMB7,599 million and gross margin improving by 2.3 percentage points to 13.9%.

• Net profit attributable to equity holders dropped sharply to RMB55 million from RMB684 million a year earlier, with net margin at 0.1%.

• Vehicle sales fell 14.7% YoY to 823,900 units, but new energy vehicle (NEV) sales surged 33.0% to 204,400 units, now 24.8% of total sales.

• Proprietary premium NEV brand VOYAH achieved monthly sales over 10,000 units for five consecutive months, with 84.8% YoY growth.

• Overseas exports increased 5.8% to 99,000 units, expanding presence in over 20 countries, especially the Middle East and Europe.

Financial highlights

• Revenue: RMB54,533 million (up 6.6% YoY); gross profit: RMB7,599 million (up 28.0% YoY); gross margin: 13.9% (up 2.3 ppts YoY).

• Net profit attributable to owners: RMB55 million (down 92% YoY); net profit margin: 0.1% (down 1.24 ppts YoY).

• Total assets at 30 June 2025: RMB317,786 million (down 2.2% from year-end 2024); total equity: RMB153,939 million (down 0.6%).

• Cash and cash equivalents at 30 June 2025: RMB33,582 million, down RMB13,401 million from year-end 2024.

• Gearing ratio stood at 51.6%.

Outlook and guidance

• Full-year China auto industry sales expected at 33.02 million units (+5% YoY), with NEV sales up 25.5% and exports up 7.5%.

• Domestic demand is expected to slow, overseas markets face uncertainties, and competition will intensify.

• Focus remains on high-quality development, innovation, and transformation, with proprietary brands and NEVs as growth drivers.