Guangzhou Automobile Group (2238) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB107.78 billion, down 16.9% year-over-year, with net profit attributable to shareholders at RMB824 million, an 81.4% decrease.

• Basic EPS was RMB0.08, down 80.95% from the prior year; gross profit margin fell by 1.1 percentage points to 2.3%.

• Total vehicle sales reached 2,003,100 units, a 20.04% decline, while overseas sales surged 67.6% to 127,063 units.

• Self-developed brands accounted for 39.41% of total sales, with NEV sales volume at 454,700 units.

• The company maintained its Fortune Global 500 status for the 12th consecutive year, ranking 181st.

Financial highlights

• Revenue: RMB107.78 billion (down 16.9% YoY); net profit attributable to shareholders: RMB824 million (down 81.4% YoY).

• Gross profit: RMB2.44 billion (down 44.13% YoY); gross margin: 2.3%.

• Operating loss: RMB3.43 billion (improved from RMB4.84 billion loss in 2023).

• Share of profit from JVs and associates: RMB2.998 billion (down 64.09% YoY).

• R&D expenditure: RMB7.15 billion, 6.64% of revenue.

Outlook and guidance

• Targets 15% YoY growth in annual automobile sales volume for 2025.

• Aims for over 60% of sales from self-developed brands by 2027, with 2 million vehicles sold under these brands.

• Plans to launch 22 new vehicle models over three years and accelerate international expansion.

• Focus on electrification, intelligent driving, and cost competitiveness; expects NEV penetration and exports to rise.