Core Viewpoint - In June, various new energy vehicle manufacturers reported their sales figures for May, with most showing positive growth, except for GAC Aion, which experienced significant declines in all metrics [1] Sales Performance Summary - In May, Aion sold 26,777 vehicles, a month-on-month decrease of 5.4% and a year-on-year decline of 33.2%, marking a cumulative drop of 12.6% over the first five months [4][10] - Aion's main models, AION Y and AION S, have seen continuous sales declines, contributing significantly to the overall sales performance [4][6] - Other new energy vehicle brands, such as Leap Motor and Li Auto, reported substantial year-on-year growth, with Leap Motor achieving a 148.1% increase [2] Market Challenges - Aion's recent new models, including AION V and AION RT, have not met sales expectations, with early sales peaks followed by rapid declines [3][7] - The aggressive pricing strategies, including multiple price cuts on existing models, have failed to boost sales, indicating a potential brand crisis [6][10] - GAC Group's net profit has suffered, with a reported loss of 730 million yuan in the first quarter, attributed to Aion's poor performance [3][10]

Core Viewpoint - GAC Group demonstrated strong operational resilience in 2024, achieving total revenue of 401.65 billion yuan despite a challenging automotive market, with a significant decline in vehicle sales [1] Financial Performance - GAC Group reported total revenue of 401.65 billion yuan and consolidated revenue of 107.78 billion yuan for 2024 [1] - The company sold 2.0031 million vehicles, a year-on-year decrease of 20.04%, with its own brand sales declining by 10.95%, which is lower than the industry average [1] - The proposed cash dividend payout ratio increased to 62.43% of net profit, with cumulative dividends exceeding 26 billion yuan since its listing [1] Brand Performance - GAC's own brands (GAC Trumpchi and GAC Aion) achieved sales of 789,500 units, accounting for 39.41% of total sales, an increase of 5.2 percentage points from 2023 [2] - New energy vehicles (NEVs) from GAC's own brands reached sales of 430,800 units, making up 55% of their total sales, significantly above the industry average of around 30% [2] - GAC Aion's sales reached 375,000 units, a year-on-year increase of 42.3%, while GAC Trumpchi's NEV sales grew by 129.8% to 186,000 units [2] Technological Innovation - GAC Group made significant advancements in smart technology, launching the ADiGO 5.0 intelligent driving system, which supports advanced driver assistance features [4] - Plans are in place to introduce L3 autonomous driving vehicles by 2025, showcasing the company's commitment to technological development [4] Global Expansion - GAC Group's overseas sales exceeded 127,000 units in 2024, a year-on-year increase of 67.6%, with exports of its own brands surpassing 100,000 units [6] - The company established a presence in 74 countries and regions, with 490 sales and service outlets, achieving a gross margin of 14.72% in overseas markets [6] - Significant growth was noted in Southeast Asia, with sales in Thailand, Malaysia, and Indonesia reaching 48,000 units, a year-on-year increase of 85% [6] Localization Strategy - GAC Group is advancing its localization strategy with the opening of a smart factory in Thailand, which has an annual capacity of 50,000 units, and a CKD factory in Malaysia [7] - The establishment of an assembly center in Mexico is aimed at facilitating entry into the North American market [7] - The company plans to continue expanding its global footprint, targeting 180,000 overseas sales by 2025 [7]