Dongfeng Motor Group Company (489) H1 2024 earnings summary

Executive summary

• Sales volume reached 966,100 units, up 2.2% year-over-year, with independent brand passenger vehicles up 19.9% and commercial vehicles up 8.9%.

• New energy vehicle sales rose 28.5% year-over-year to 153,600 units, with their share of total sales up 3.3 percentage points.

• Revenue increased 12.1% year-over-year to RMB51,145 million, while net profit attributable to equity holders was RMB684 million.

• Gross profit margin improved to 11.6%, driven by higher profitability in independent brands and new energy vehicles.

• Cash reserves remained strong at nearly RMB100 billion, and the gearing ratio was stable at 51.0%.

Financial highlights

• Revenue: RMB51,145 million, up 12.1% year-over-year.

• Gross profit: RMB5,936 million, up 15.0% year-over-year; gross margin at 11.6%.

• Net profit attributable to equity holders: RMB684 million, down from RMB1,314 million last year.

• Net profit margin: 1.3%, down 1.6 percentage points year-over-year.

• Total assets: RMB323,370 million; total equity: RMB158,538 million.

• Interim dividend declared: RMB0.05 per share (previous year: nil).

Outlook and guidance

• China's auto industry expected to grow 2.7% for the year, with TIV forecast at 30.9 million vehicles.

• Continued focus on new energy and intelligent vehicles, with high-quality development and structural optimization as priorities.

• The group aims to accelerate transformation, cost reduction, and profitability improvement.