GAC Group Forecasts H1 2026 Loss of RMB 4.06–4.57 Billion

GAC Group has released its earnings forecast for the first half of 2026, projecting a net loss attributable to shareholders of the parent company in the range of RMB 4.06 billion to RMB 4.57 billion. The net loss after excluding non-recurring gains and losses is expected to be between RMB 4.8 billion and RMB 5.6 billion—significantly wider than the corresponding losses of RMB 2.538 billion (attributable to shareholders) and RMB 2.945 billion (after excluding non-recurring items) recorded in the same period of 2025. During the reporting period, GAC achieved modest growth in overall vehicle sales, saw a slight improvement in gross margin, and experienced substantial growth in overseas market sales, maintaining an expanding operational scale. However, profitability remained under persistent pressure due to multiple factors. The company attributed the widening losses primarily to the following reasons: intensified competition in China’s auto market led its自主品牌 (self-owned brands) to significantly increase terminal sales investments to maintain market share; this, combined with product portfolio adjustments and rising upstream raw material costs, resulted in a year-over-year decline in profits from self-owned brands. Meanwhile, joint venture brands saw declining sales alongside higher sales expenditures and costs, leading to reduced investment income. Additionally, foreign exchange losses caused by currency fluctuations further squeezed profit margins. Currently, China’s passenger vehicle market is characterized by persistent price competition, with the industry broadly facing a divergence between sales growth and profit recovery. GAC’s enlarged projected loss reflects the combined impact of high investments in its self-owned brands, declining returns from joint ventures, and external pressures from rising costs and exchange rate volatility.