Chongqing Changan Automobile Company Limited (000625.SZ) reported a significant decrease in non-recurring gains and losses for 2025, which amounted to 12.80 billion yuan, down substantially from 47.34 billion yuan in 2024.
On the evening of April 10, the company released its 2025 annual report, revealing that while operating revenue reached 163.99 billion yuan, a year-on-year increase of 2.67%, net profit attributable to shareholders was 4.075 billion yuan, reflecting a decline of 44.34%. However, net profit after deducting non-recurring items was 2.795 billion yuan, an increase of 8.03% compared to the previous year.
The past year saw Changan Auto achieve multiple sales records. Data indicates that in 2025, the company sold 2.913 million vehicles, marking the highest sales volume in nearly nine years and an 8.5% year-on-year increase. This represents the sixth consecutive year of positive growth, making Changan the fastest Chinese automaker to reach the milestone of 30 million cumulative vehicle sales.
Within this total, sales of new energy vehicles surpassed 1.11 million units, an increase of 51.1% year-on-year, setting a new historical record. Overseas market sales reached 637,000 units, growing by 18.9% and also achieving a record high.
The substantial reduction in net profit, contrasted with the growth in core operating profit, highlights the significant impact of non-recurring items on profitability. The annual report detailed that the major components of non-recurring gains and losses saw considerable decreases. Gains from the disposal of non-current assets were 173 million yuan in 2025, compared to 2.55 billion yuan in 2024. Government subsidies received were 559 million yuan, down from 1.627 billion yuan the previous year. Other non-recurring items amounted to 515 million yuan, a decrease from 1.014 billion yuan in 2024.
A key difference was observed in gains from the disposal of fixed assets, which were 103 million yuan in 2025, a sharp drop from 2.466 billion yuan in 2024.
After excluding these non-recurring items, Changan Auto's 2025 net profit of 2.795 billion yuan, growing 8.03%, demonstrates resilience in the profitability of its main business operations.
In 2025, several of Changan Auto's brands experienced sales growth. The Avatr brand sold over 120,000 vehicles for the year, an increase of approximately 63%. However, as the impact of the Avatr brand on the company's net profit was below the 10% disclosure threshold, Changan Auto did not publish its specific revenue and financial data. The Deepal brand achieved annual sales of 325,000 units, a 44.4% increase year-on-year. It generated revenue of 50.245 billion yuan, up 34.97%, and reported a net loss of 899 million yuan, a significant reduction from the loss of 1.571 billion yuan in 2024. The Changan Qiyuan brand saw sales exceed 410,000 units, growing 42.6%.
Changan Auto also disclosed its long-term targets, aiming for total sales of 5 million vehicles by 2030. This includes a plan for 4 million sales of its proprietary brands, a target of 3 million sales for its digital and intelligent new vehicles, and an overseas sales target of 1.5 million vehicles.
Despite sales growth outpacing revenue growth, Changan Auto faced a decline in its average selling price per vehicle. According to the 2025 report, revenue from goods sold was 155.739 billion yuan. Based on total vehicle sales of 2.913 million units, the average selling price was approximately 53,400 yuan per vehicle. In 2024, revenue from goods sold was 152.19 billion yuan against sales of 2.684 million vehicles, resulting in an average price of about 56,700 yuan per vehicle. This indicates a decrease in the average unit price of approximately 3,300 yuan in 2025.
Analyzing by region, the average selling price in overseas markets also declined. In 2025, overseas sales were 637,000 units, an increase of 18.85%, while overseas revenue was 33.2 billion yuan, a modest growth of 2.4%. The gross profit margin for overseas operations fell to 19.49% in 2025 from 26.2% in 2024, a decrease of 6.7 percentage points. The calculated average selling price per vehicle in overseas markets was 52,100 yuan.
The annual report attributed this to intensified competition in key markets, leading to increased resource investments by the companies handling its export business, Chongqing Xingzhi Technology Co., Ltd. and Chongqing Changan Automobile International Sales Service Co., Ltd., which resulted in an overall reduction in profit compared to the previous year.
Regarding future strategy, Changan Auto stated it plans to launch 43 new models over the next three years, aiming to establish a comprehensive market and product category layout by 2028 and firmly build global blockbuster models. For overseas markets, it plans to launch 26 new models cumulatively in the next three years, with the goal of covering all major global markets by 2030.
Concurrently, Changan will accelerate the layout and industrial application of emerging industries such as embodied AI humanoid robots and flying cars, targeting mass production of humanoid robots by 2028 and the launch of commercial route flying cars by 2030.
The company remains committed to increasing its R&D investment. In 2025, R&D expenditure reached 12.576 billion yuan, a year-on-year increase of 23.79%. Changan Auto stated that during the "16th Five-Year Plan" period, it will persist in allocating over 5% of its revenue annually to R&D. It plans to recruit over 10,000 core talents and more than 400 top industry experts in key areas such as AI, software, "three electrics" (battery, motor, electronic control), and styling. The company also aims to release over 160 technologies in fields like intelligent driving, AI cockpits, and next-generation batteries.
To achieve its strategic objectives, Changan Auto has planned total investment of 14.47 billion yuan for 2026. This comprises 4.47 billion yuan in fixed asset investments and 10 billion yuan in long-term equity investments (including funds). Fixed asset investments will focus on enhancing core R&D capabilities, improving styling, advanced research, and solid-state battery testing capabilities. Long-term equity investments will primarily concentrate on strengthening intelligent foundational capabilities, solidifying overseas investment platforms, expanding into emerging industries, and exploring sectors like flying cars and robotics, thereby driving the company's transformation into a technology-oriented enterprise.
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