Guangzhou Automobile Group Co., Ltd. (GAC Group) reported a significant loss of 4.312 billion yuan (RMB, same below) in the first three quarters of this year, representing a staggering 3691.33% decrease compared to the same period last year. The company attributed this poor performance to various factors including a decline in profits.
According to the “Third Quarter Report for 2025” released by GAC Group on October 25, the company achieved an operating income of 24.106 billion yuan in the third quarter of this year, a decrease of 14.62% year-on-year. The net profit attributable to shareholders of the listed company was -1.774 billion yuan, down by 27.02% year-on-year, with a basic earnings per share of -0.17 yuan.
Overall, in the first three quarters of this year, the net profit attributable to shareholders of the listed company of GAC Group reached -4.312 billion yuan, representing a significant decline of 3691.33% compared to the same period last year.
GAC Group believes that the major reasons for the sharp decline in profitability are primarily due to intense competition in the Chinese automotive industry, rapid upgrading of demand structure leading to a decline in car sales and profits, and a substantial year-on-year decrease in net profit.
In recent years, the sales volume of GAC Group’s automobiles has been continuously declining. Production and sales data show that from January to September this year, GAC Group sold a total of 1.1837 million vehicles, which is an 11.34% decrease compared to the same period last year. In the first six months of this year, GAC Group produced and sold 0.8017 million and 0.7553 million vehicles respectively, representing a 6.73% and 12.48% year-on-year decrease, only achieving 32.84% of the annual target of 2.3 million vehicles.
Furthermore, public data indicates that in the first six months, the non-recurring net loss attributable to the parent company was 2.945 billion yuan, significantly widening from the 0.338 billion yuan loss in the same period last year. The net operating cash flow was -10.769 billion yuan, reflecting a drastic 508.8% year-on-year decrease.
Established on June 6, 1997, Guangzhou Automobile Group Co., Ltd. is a state-owned holding enterprise listed on both A-shares and H-shares under the supervision of the Guangzhou State-owned Assets Supervision and Administration Commission.
As of the closing on the 24th, GAC Group’s stock price dropped by 0.38%, closing at 7.81 yuan per share, with a total market value of 66.5 billion yuan.