GAC GROUP(SH:601238) Guo Ji Jin Rong Bao·2025-10-28 12:40Core Viewpoint - GAC Group is facing significant financial challenges, with a substantial increase in net losses in Q3 and a shift from profit to loss in the first three quarters of 2024, exceeding 4.3 billion yuan [1] Financial Performance - In Q3, GAC Group reported revenue of 24.106 billion yuan, a year-on-year decline of 14.62%, with a net loss attributable to shareholders of 1.774 billion yuan, widening by 27.08% compared to the same period in 2024 [1] - For the first three quarters, total revenue was 66.272 billion yuan, down 10.49% year-on-year, and net profit turned from a profit of 120 million yuan in 2024 to a loss of 4.312 billion yuan, a staggering decline of 3691.33% [1] - Vehicle sales for the first nine months of 2025 reached 1.1837 million units, a decrease of 11.34% year-on-year, attributed to a "price war" strategy [1] Brand Performance - GAC Toyota was the only brand to show growth, with sales of 543,200 units, a slight increase of 4.89% year-on-year, while GAC Honda experienced a decline of 27.58% with sales of 223,900 units [2] - GAC's self-owned brands, GAC Trumpchi and GAC Aion, also saw poor performance, with sales of 233,100 units and 181,400 units, down 15.84% and 19.99% respectively [2] R&D and Strategic Initiatives - Despite a net loss exceeding 4 billion yuan, GAC reduced R&D expenses by 2.79%, which may impact long-term competitiveness amid a highly competitive technological landscape [2] - GAC has entered a "wartime state," with initiatives to restructure its R&D process and reduce product development cycles from 26 months to 18-21 months, aiming for a cost reduction of over 10% [3] - External collaborations are key to GAC's transformation, including partnerships with Huawei for a high-end brand and with Didi for L4 autonomous driving vehicles, as well as electric vehicle initiatives with JD and CATL [3] Industry Context - The pressure from the "price war" in the automotive industry is expected to persist, making profit recovery a long-term challenge for traditional automakers [4]