GAC Group's revenue last year decreased by 10% to 95.7 billion yuan, with a loss of 8.8 billion yuan, turning from profit to loss year-on-year.

GAC Group states that production and operations will remain under pressure in 2025.

On March 27, Guangzhou Automobile Group Co., Ltd. (GAC Group, 601238) announced that it expects to achieve operating revenue of 95.662 billion yuan in 2025, a year-on-year decline of 10.43%; the net profit attributable to shareholders of the listed company will be -8.784 billion yuan, shifting from profit to loss, compared to a net profit of 824 million yuan in 2024; basic earnings per share will be -0.85 yuan.

Looking at it quarterly, the company is expected to incur net losses in each quarter of 2025. The fourth quarter will see the most severe losses, reaching as high as 4.472 billion yuan.

In response to the performance shift to a loss, GAC Group explained that during the reporting period, affected by intense competition in the automotive industry and rapid reconstruction of the industrial ecosystem, while the company’s automobile sales have been increasing quarter-on-quarter since the second quarter, the total automobile sales for the year did not meet expectations; at the same time, to cope with drastic market changes, the company adjusted and increased sales investments.

Additionally, during the reporting period, affected by sales volume and adjustments in the structure of self-owned brand new energy products, the company has increased its impairment provisions for intangible assets and inventories compared to the same period last year; at the same time, GAC Honda accelerated its new energy transition, which led to impairment provisions for production line adjustments and optimization, as well as personnel optimization, resulting in further reductions in the company’s investment income.

The financial report stated that in 2025, faced with systemic challenges brought by the multi-dimensional reconstruction of the industrial ecosystem, demand structure, and market competition, GAC Group’s production and operations will continue to be under pressure.

In terms of sales volume, GAC Group’s total automobile production and sales for the year were 1.7444 million and 1.7215 million units, representing year-on-year declines of 8.98% and 14.06%, respectively. Among them, new energy vehicle sales were 433,600 units, a year-on-year decline of 4.64%, accounting for approximately 25.19% of the group’s total sales, an increase of about 2.5 percentage points compared to the previous year.

However, starting from the second quarter of 2025, GAC Group has achieved three consecutive quarters of quarter-on-quarter positive growth in sales volume.

In 2025, GAC Group will vigorously promote the transformation of its self-owned brands. The financial report introduced that its self-owned brand has established a shared center to promote integrated reforms, carry out IPD (Integrated Product Development) and IPMS (Integrated Product Marketing and Sales) transformations, and establish product commercialization teams and user demand-driven product development processes; promote BU organization pilots, setting up Haobo Aian BU and Chuanqi BU; promote marketing innovation cooperation with JD.com, adopting a “multi-brand integration + lightweight agency model” to promote channel penetration.

As of the close on the 27th, GAC Group’s stock rose by 0.14%, closing at 7.25 yuan per share.

Reporter: Wu Yuli, The Paper