Xin Lang Zheng Quan·2025-11-05 10:38Core Viewpoint - GAC Group is the only listed automotive company in A-shares to report a decline in revenue for the third quarter, with significant losses in net profit and a sharp drop in performance compared to market expectations [1][5]. Financial Performance - GAC Group reported a total revenue of 66.93 billion yuan for the first three quarters, a year-on-year decrease of 10.5% [5]. - The net profit attributable to shareholders was -4.31 billion yuan, with a non-recurring net profit of -4.78 billion yuan, marking a record loss [5]. - In Q3 alone, revenue was 24.32 billion yuan, down 15% year-on-year, with a net profit of -1.77 billion yuan and a non-recurring net profit of -1.83 billion yuan, indicating accelerated decline [5]. Profitability Metrics - The gross margin for GAC Group fell to -2.17% for the first three quarters, a decrease of 8.3 percentage points year-on-year, with Q3 gross margin at -2.9% [5][7]. - The company's R&D expense ratio remained low at 1.5%, significantly below comparable companies like BYD and SAIC [7]. Brand Performance - GAC's self-owned brand, GAC Trumpchi, faced a significant decline in revenue, with a 29.47% drop in the first half of the year, the largest decline among GAC's brands [12]. - New models such as the Trumpchi M8 and S7 did not meet sales expectations, contributing to the overall decline in performance [9][10]. Strategic Initiatives - GAC Group initiated a three-year "Panyu Action" plan aiming for self-owned brands to account for 60% of total sales by 2027, targeting a sales volume of 2 million units for self-owned brands [12]. - Despite efforts to reduce costs and improve efficiency, the actual results have not aligned with the optimistic projections made by the company's chairman [12].