Guangzhou Automobile Group expects a net loss attributable to shareholders of approximately 4.06 billion to 4.57 billion yuan in the first half of the year.

Guangzhou Automobile Group (02238) announced that it is expected to incur a net loss attributable to the owners of the parent company of RMB 40.6 billion to RMB 45.7 billion in the first half of 2026. In the first half of 2025, the net loss attributable to the owners of the parent company was RMB 25.38 billion. During this period, the competition in the domestic automotive market remained intense. The company actively expanded its market, achieving significant growth in overseas sales; overall sales slightly improved in the first half of the year, and gross profit margins slightly improved compared to the same period last year. However, due to multiple unfavorable factors, the company's losses increased compared to the same period last year, mainly due to the following reasons: first, intensified competition in the domestic market, with increased sales investment in the company's self-owned brands, coupled with changes in product sales structure and rising upstream raw material costs, leading to increased losses in self-owned brands compared to the same period last year; second, pressure on joint venture brands, with factors such as declining end-user sales, increased sales investments, and rising raw material costs leading to a decrease in investment income compared to the same period last year; third, impacted by exchange rate fluctuations, the company incurred exchange losses in this period, further compressing its profit margins.