Guangzhou Automobile Group (601238) Q2 2026 earnings summary

Executive summary

• Sales reached 773,100 vehicles in H1 2026, up 2.35% year-over-year, outperforming the industry in a challenging market.

• Revenue rose 9.13% year-over-year to RMB46.5 billion, driven by increased sales of self-developed brand vehicles.

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

• NEV sales surged 68.8% year-over-year to 260,200 units, now 33.65% of total sales; energy-efficient and NEVs combined reached 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

• Revenue: RMB46.5 billion (+9.13% year-over-year).

• Net loss attributable to shareholders: RMB4.467 billion (loss increased 75.98% year-over-year).

• Basic loss per share: RMB0.44 (vs. RMB0.25 in H1 2025).

• Gross loss: RMB1.975 billion; gross loss margin: 4.25%.

• Cash and cash equivalents: RMB33.39 billion as of June 30, 2026 (+40.02% from end-2025).

• Net cash outflow from operating activities: RMB7.72 billion (improved from RMB11.46 billion outflow in H1 2025).

• 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.

Outlook and guidance

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

• Plans to launch key models (Trumpchi Yue 7, AION Ray 7, AISTALAND GX7) and expand to 1,000 county-level stores in 2026.

• Targeting annual overseas sales surpassing 1 million units by 2030, with business in 120 countries.