GAC Group (02238) expects a net loss of about 4.06 billion yuan to 4.57 billion yuan in the first half of the year

According to the Zhitong Finance App, Guangzhou Automobile Group (02238) announced that the company is expected to achieve a net loss attributable to owners of the parent company in the first half of 2026 of RMB 4.06 billion to RMB 4.57 billion. In the first half of 2025, the net loss attributable to owners of the parent company was RMB 2,538 billion.

In the current period, competition in the domestic automobile market continued to heat up. The company actively expanded its market and achieved a significant increase in sales in overseas markets; overall sales increased slightly in the first half of the year, and gross margin improved slightly compared with the same period last year. However, due to a combination of adverse factors, the company's losses increased compared to the same period last year. The main reasons are as follows: first, competition in the domestic market intensified, and the company's own brands continued to increase sales investment, and changes in product sales structure and rising upstream raw material costs led to an increase in independent brand losses compared to the same period last year; second, joint venture brand operations were under pressure, which was affected by factors such as declining terminal sales, continued increase in sales investment, and rising raw material costs. Third, due to exchange rate fluctuations, exchange losses in the current period further reduced profit space.