AutoBeta(AutoBeta.net)10/31 Report--

On the evening of October 30th, Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as "GAC GROUP") released its third quarter financial report of 2024. According to the financial report, GAC GROUP achieved an operating income of 28.233 billion yuan in the third quarter, down 21.73% from the same period last year; the net profit lost 1.396 billion yuan, down 190.40% from the same period last year; by contrast, the decline in deducting non-net profit was more obvious, deducting a non-net loss of 1.532 billion yuan, down 216.01% from the same period last year.

Extending the time to the first three quarters of this year, GAC GROUP achieved operating income of 74.04 billion yuan, down 24.18% from the same period last year; net profit from his mother was 120 million yuan, down 97.34% from the same period last year; and deducted a loss of 1.87 billion yuan from non-net profit, down 146.49% from the same period last year.

In response to the decline in financial results, GAC GROUP explained: "the main reason is that during the reporting period, car sales declined compared with the same period last year, business and political investment increased, profits declined, and joint ventures optimized redundant production capacity for one-time expenses." the increase in exchange rate losses caused by exchange rate changes and other factors led to a decrease in net profit compared with the same period last year. "

GAC GROUP's decline in earnings is closely related to the decline in its sales. Data show that GAC GROUP's cumulative sales in the first three quarters of this year were 1.3351 million, down 25.59 per cent from the same period last year. Subdivided into GAC GROUP's brands, Guangzhou Auto Honda fell 29.06% to 309200 vehicles in the first three quarters compared with the same period last year; Guangzhou Auto Toyota's performance was not optimistic, falling 24.49% to 517900 vehicles compared with the same period last year. The sales of the two joint ventures accounted for 62% of the group's total sales, which can be said to be GAC GROUP's main source of sales, and the sharp decline in sales of these two joint ventures also directly affected GAC GROUP's revenue and profit performance.

In addition to joint venture brands, independent brands are also having a hard time. GAC Ean, a new energy brand owned by GAC GROUP, sold 226700 vehicles, down 35.40% from a year earlier. As of the end of September this year, according to the annual sales target of 700000 vehicles, the completion rate of GAC Ean is only 32.39%. It is extremely difficult for GAC Ean to achieve the target on time.

GAC MOTOR's sales were 277000, down 6.41 per cent from a year earlier. At the end of July this year, GAC MOTOR officially changed its name to GAC MOTOR, and its models for sale include sedan Shadow Leopard, SUV GS4, GS3 Shadow Speed, GS8, Yingku, MPV M8 and M6. In response to the name change, people in the industry said at that time that changing the name of GAC MOTOR to GAC MOTOR would further highlight the important position of independent brands in GAC GROUP, thereby enhancing the corporate image and awareness of the brand.

In addition, GAC Hino and Hechuang, which were classified as "other" by GAC GROUP, sold only 4300 vehicles in the first three quarters, a year-on-year drop of 83.34 per cent.

From the overall sales performance, whether joint venture brands or independent brands, the market performance in the first three quarters is not very satisfactory. At present, GAC GROUP's main source of sales still depends on joint venture brands, but with the rapid transformation of China's new energy vehicle market, the market share of traditional joint venture brands in the car market is gradually being carved up. In particular, the fuel vehicle market is gradually being eroded by the new energy vehicle market, which also causes GAC GROUP to bear more pressure than before, "how to turn around." "to stop the decline of sales" is the subject that GAC GROUP urgently needs to make up at present.

On the 25th of this month, GAC GROUP announced that in order to realize the transformation of the management mode of independent brands from strategic control to operation control and improve management efficiency, GAC GROUP has moved to a new office address since November 2. before the change, it was located at 23 Xingguo Road, Zhujiang Xincheng, Tianhe District, Guangzhou City, Guangdong Province, and it was changed to 668 Jinshan Road East, Panyu District, Guangzhou City, Guangdong Province. GAC GROUP said that this move is mainly in response to profound changes in the market pattern of the automobile industry, promote independent brands to become bigger and stronger, speed up the completion of GAC GROUP's transformation and adjustment, and achieve sustained, healthy and high-quality development. People in the industry believe that the relocation of the headquarters is conducive to the development of the group, better manage Chuanqi and Ian, and strengthen the management of "two fields" at the same time.

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