Guangzhou Automobile Group (601238.SH) expects its net profit attributable to the parent company to be between 800 million and 1.2 billion in 2024. It has plunged by more than 80% and additional sales subsidies amount to 18 billion yuan.

Guangzhou Automobile Group (601238.SH) announced that, based on preliminary calculations by the financial department, it is expected to achieve a net profit attributable to the owners of the parent company of 800 million to 1.2 billion yuan in 2024. This represents a decrease of 3.229 billion to 3.629 billion yuan compared to the same period last year, a year-on-year decrease of 72.91% to 81.94%. It is expected that the net profit attributable to the owners of the parent company in 2024, excluding non-recurring gains and losses, will be -3.3 billion to -4.7 billion yuan. This represents a decrease of 6.873 billion to 8.273 billion yuan compared to the same period last year, a year-on-year decrease of 192.37% to 231.56%. Due to factors such as price competition in the automotive industry and drastic changes in the competitive landscape, car sales have decreased. At the same time, in order to cope with market competition, the company and its investment enterprises have added approximately 18 billion yuan in investment in sales subsidies and other business policies. These factors have led to a decrease in net profit attributable to the owners of the parent company in this reporting period compared to last year.