Guangzhou Automobile Group (02238) issued a profit warning, expecting a year-on-year decrease in net profit attributable to owners of the company between 72.91% to 81.94%.

Guangzhou Automobile Group (02238) announced that it expects the net profit attributable to the owners of the parent company for the year ending December 31, 2024 to decrease by RMB 32.29 billion to RMB 36.29 billion compared to the same period of the previous year, a year-on-year decrease of 72.91% to 81.94%. Due to factors such as the "price war" in the domestic automobile industry and drastic changes in the competitive landscape, the company's car sales have decreased. In order to cope with market competition, the company and its invested enterprises have invested approximately RMB 18 billion in additional sales subsidies and other business policies, leading to a decrease in the net profit attributable to the owners of the parent company for the year 2024. The company transferred partial equity of its invested companies in 2024, resulting in an increase in non-recurring gains and losses compared to 2024, due to equity transfer gains, changes in the valuation of the invested companies, and government subsidies received.