JAC Motors Posts Seventh Straight Quarterly Loss, H1 Loss Expected at RMB 740 Million

JAC Motors has released its 2026 interim earnings forecast, expecting a net loss attributable to shareholders of approximately RMB 740 million for the first half of the year, representing a year-over-year reduction in losses of RMB 328.1 million. The company has reported losses for seven consecutive quarters. Specifically, it posted a loss of RMB 6.06 billion in Q1 2026 and is projected to incur a loss of RMB 1.34 billion in Q2, reflecting a sequential narrowing of losses. The earnings fluctuation is primarily driven by three factors: intensified market competition leading to declining sales, losses from equity investees negatively impacting investment income, and foreign exchange fluctuations increasing financial expenses. The ongoing losses are closely tied to the substantial investments in Zunjie, JAC’s premium brand. Co-developed with Huawei, Zunjie is positioned as a luxury marque targeting the RMB 1-million-plus segment. Its debut model, the Zunjie S800, launched in May 2025 with a starting price of RMB 708,000. To promote this brand, JAC incurred total sales expenses of RMB 28.97 billion in 2025, up 97.5% year-over-year; in Q1 2026 alone, sales expenses reached RMB 7.43 billion, a 130% increase compared to the same period last year. Currently, Zunjie remains in a high-investment phase focused on R&D and channel development and has yet to achieve profitability.