Chery Automobile Discloses First Financial Report Since Hong Kong Listing: Net Exchange Losses Reach 3.171 Billion Yuan in First Three Quarters

On October 30, Chery Automobile disclosed its first financial report since listing in Hong Kong. In the first three quarters of 2026, Chery achieved revenue of 241.234 billion yuan, up 12.29% year on year; profit for the period was 14.595 billion yuan, basically flat year on year; net profit attributable to shareholders was 13.963 billion yuan, down 2.8% year on year. Qi Shilong, executive vice president of Chery Automobile Co., Ltd., said that in the first nine months of 2026, the company's passenger vehicle sales were 2.0769 million units, of which exports were 1.4991 million units, accounting for more than 70%. During the same period, the company's gross profit reached 39.004 billion yuan, up 32.38% year on year; the gross margin was approximately 16.17%, up about 2.46 percentage points year on year. Calculated based on the financial report data, Chery's revenue in the first three quarters increased by approximately 26.401 billion yuan year on year, gross profit increased by approximately 9.540 billion yuan year on year, and net profit attributable to shareholders decreased by approximately 402 million yuan year on year. The financial report shows that Chery's other expenses in the first three quarters were 3.364 billion yuan, compared with 252 million yuan in the same period last year. Among them, the net exchange loss reached 3.171 billion yuan. According to the company management's explanation, after excluding one-off gains and not counting exchange losses, the company's core profit was approximately more than 17 billion yuan. In the first three quarters, Chery's R&D expenses were 11.046 billion yuan, compared with 7.878 billion yuan in the same period last year, an increase of approximately 3.168 billion yuan year on year, or about 40%, mainly invested in areas such as next-generation electric drive, hybrid transmissions, batteries and solid-state technology, and AI innovation. R&D expenses and other expenses together increased by approximately 6.280 billion yuan year on year, equivalent to about two-thirds of the newly added gross profit. Chery management said that the profit of the company's overseas business has generally been relatively stable in recent years, with differences in profit margins across regions and product structures, but the profitability per vehicle overseas is better than in China, and markets such as Europe, Australia, and New Zealand have performed well in terms of profitability. Chery's proposed response direction is to further shift from vehicle exports to localized operations. The company management summarizes this as "Internationalization 3.0," that is, moving from the globalization of sales in the past to the globalization of R&D, manufacturing, and procurement. Management said that hedging through the business structure is the core, while financial instruments such as forwards and options mainly play a supporting role, and pricing of end products also needs to be adjusted according to market changes. Around April 2026, the company established a European operations center in Spain and set up a research institute, while also building R&D capabilities in France and Germany to support localized development and establish local supply chains. The company also acquired a factory in South Africa from a foreign company to advance local manufacturing and long-term operations. Chery said that local manufacturing and supply chain construction will increase expenditures, with labor and energy being the two main costs.