Summary of SAIC Motor Corporation Conference Call Company Overview - **Company**: SAIC Motor Corporation - **Industry**: Automotive Key Points Sales Performance - In the first half of 2025, SAIC Motor's total sales reached 2.053 million units, representing a year-on-year increase of 12.35% [3] - June 2025 sales were 365,000 units, up 21.56% year-on-year [3] - Notable brand performances include: - SAIC Volkswagen: June sales of approximately 93,000 units, up 13% [3] - General Motors: June sales of 47,000 units, up 80%, with a cumulative total of 245,000 units for the first half, up 8.6% [3] - SAIC Passenger Vehicles: June sales of 63,000 units, up 15.5%, with a cumulative total of 368,000 units, up 9.8% [3] Export Performance - In the first half of 2025, SAIC Motor's wholesale export volume reached 490,000 units, and retail export volume reached 570,000 units [4][5] - The annual export target is set at over 1.1 million units, with the MG brand expected to export 650,000 units [4][5] New Model Launches - SAIC plans to launch several new models from the second half of 2025 to 2026, including: - Audi A5L and E5 (the first Audi model using Huawei inside technology) [6] - Roewe M7 and MG4 [6] - A total of 10 new models from Volkswagen targeted for the local market by 2026 [6] Collaboration with Huawei - The "Upper Boundary" project, a collaboration with Huawei, has a team of over 400 people [7] - The first SUV priced around 200,000 yuan is expected to launch in Q4 2025, available in both extended range and pure electric versions [7] - The project aims to introduce two additional new models next year, potentially leading to three models being sold simultaneously by the end of next year [7] Profitability Improvement - The profitability of the passenger vehicle segment has significantly improved due to strategic integration efforts [8] - The first quarter of 2025 achieved breakeven, with expectations of noticeable loss reduction in the first half [8] - The elimination of losses from General Motors and potential profit contributions from Audi are expected to enhance overall profitability compared to last year [8] Strategic Adjustments - In 2024, SAIC implemented three major adjustments: reducing inventory, focusing on retail, and addressing General Motors' risks [9] - These adjustments have positioned SAIC to operate in a light asset state in 2025, leading to improved efficiency and cost savings [9] Valuation Status - SAIC's current valuation is low, with a price-to-book ratio (PB) of approximately 0.67 to 0.68 [10] - The valuation has room for recovery, especially with the anticipated market effects from the collaboration with Huawei and new model launches [10][11] Market Impact of New Releases - The new models developed in collaboration with Huawei are expected to create significant market catalysts [12] - The first model is positioned competitively in terms of pricing and is anticipated to attract consumer interest due to its intelligent features [12] Future Outlook - The upcoming half-year report in August and new model launches in late summer are expected to catalyze upward movement in SAIC's PB ratio [13] - The introduction of additional new models in 2026 is projected to provide further growth opportunities [13]