Guangzhou Automobile Group (02238) announced interim results, gross profit increased 9% year on year, and overseas automobile sales increased by about 190% year on year

According to the Zhitong Finance App, GAC Group (02238) announced 2024 interim results, with sales revenue of about 46.255 billion yuan (RMB, same below); net profit attributable to shareholders of listed companies was about 1,516 billion yuan; and basic earnings per share were about 0.14 yuan.

During the period, total gross profit was about 2.152 billion yuan, up 9.0% year on year, and gross margin increased 1.46% over the same period last year, mainly due to the sharp increase in overseas vehicle sales and high gross profit from vehicle exports during the reporting period.

Production and operation overcome difficulties. Faced with the complex and severe internal and external situation, the Group deployed and launched the “Deep Reform, Strong Management, Development Promotion, Quality and Efficiency Campaign” at the beginning of this year to fully promote terminal sales. In the first half of the year, the Group sold more than 860,000 vehicles, of which own-brand car sales increased to about 36.5%. In the first half of 2024, the Group achieved consolidated sales revenue of approximately RMB 181,142 billion, and was selected as one of the Fortune 500 for 12 consecutive years, ranking 181.

Accelerate the layout of the international market. The Group's overseas business has covered 68 countries and regions, including the Middle East, Southeast Asia, Africa and America, and has initially established a global R&D, production, sales and service system. In the first half of the year, the Group achieved overseas sales of about 68,000 vehicles, an increase of about 190% over the same period last year. Among them, overseas sales of own-brand cars were about 54,000 units, an increase of about 144% over the same period last year. Actively promoting localized production and operation, the CKD plant in Malaysia and the GAC Aian plant in Thailand have successively been completed and put into operation; strengthened the collaborative overseas launch mechanism, GAC Trading established logistics subsidiaries in Thailand and Mexico, and GAC parts invested in the construction of Thai seat projects to further improve the international logistics and parts guarantee system.

Independent innovation has accumulated weak development. Continue to attack research and development of key core technologies, increase forward-looking scientific and technological innovation, and accelerate the development of new quality productivity. In the first half of the year, the Group invested about RMB 3.251 billion in R&D, adding 1,656 patent applications, including 847 invention patents; by the end of June 2024, the cumulative number of patent applications had exceeded 19,000, including more than 8,000 invention patent applications. In the field of new energy, all-solid-state power battery research and development has made key progress. It is expected to be installed in Haobo models in 2026. In the field of intelligent connectivity, the intelligent driving L2++ city NDA function has been implemented in Haobo models, and the Group has also become one of the first car companies in the country to launch L3 autonomous driving road traffic pilots, and is accelerating the commercialization of autonomous driving.

Driven by innovation to develop new quality productivity. Focus on strategic emerging industries and future industries such as low carbon, new energy, intelligent connectivity, low-altitude economy, three-dimensional mobility, etc., to attack research and development of key core technologies, increase forward-looking scientific and technological innovation efforts, and strive to be a pioneer in innovation-driven development. In the field of new energy, we will continue to promote the industrial development of independent batteries, consolidate the technological leadership of self-developed batteries, and focus on solid-state battery research and development. In the field of intelligence, promote the implementation of the “Smart Drive 2027” action plan, based on the three core technologies of GAC's “AI Big Model Platform”, “Xingling Electronic and Electrical Architecture”, and “Connected Big Data Platform” to promote intelligent development and achieve two major leaders in product experience and travel scenarios; using entering the first batch of autonomous driving road traffic pilots in the country as an opportunity to accelerate the technological iteration of self-developed intelligent driving products, it is planned to achieve NDA nationwide within this year; strengthen excellent cooperation with intelligent driving companies to rapidly enhance the level of intelligent driving and brand influence. Strengthen forward-looking technology research and accelerate manned flight testing and industrialization of GOVE multi-rotor flying vehicles.