Guangzhou Automobile Group (2238) Q1 2025 earnings summary

Executive summary

• Revenue from operations for Q1 2025 was RMB 19.65 billion, down 7.95% year-over-year due to lower vehicle sales and intensified market competition.

• Net profit attributable to shareholders was a loss of RMB 731.6 million, compared to a profit of RMB 1.22 billion in Q1 2024, mainly from decreased sales and higher promotional spending.

• Net cash flow from operating activities was negative RMB 11.21 billion, a further decline from negative RMB 6.14 billion in the prior year period.

Financial highlights

• Revenue from operations: RMB 19.65 billion (down 7.95% year-over-year).

• Net profit attributable to shareholders: -RMB 731.6 million (down 159.95% year-over-year).

• Net profit after non-recurring items: -RMB 892.8 million (down 229.89% year-over-year).

• Basic and diluted EPS: -0.07 yuan (down from 0.12 yuan year-over-year).

• Weighted average return on net assets: -0.64% (down 1.69 percentage points year-over-year).

Outlook and guidance

• Results reflect intensified competition and increased promotional spending, with management attributing declines to these factors and lower government grants.