BAIC MOTOR (01958) has issued a profit warning, projecting a significant financial downturn for the first half of the year.
According to a company announcement, based on unaudited consolidated management accounts for the six months ending June 30, 2026, the company expects to record a net loss attributable to equity holders of approximately RMB 1.55 billion to RMB 1.65 billion. This represents a sharp swing from a profit recorded in the same period of 2025.
The company attributed the expected loss to a highly competitive domestic auto market in the first half of 2026, which led to sales volumes falling short of expectations. This was compounded by rising raw material costs and increased market investment, collectively driving the net loss for equity holders.
In response to these challenges, BAIC MOTOR stated it is actively adapting to industry shifts, focusing on user needs, and firmly advancing its new energy transition strategy. Beijing Benz Automotive Co., Ltd. is intensifying the rollout of new energy models, deepening localization efforts to reduce costs and improve efficiency, and continuously enhancing its competitiveness in the luxury car market. Meanwhile, the main selling models under the Beijing brand are showing counter-trend growth, maintaining a leading position in their market segments. Overall, the company emphasized that its asset structure remains solid, asset quality is excellent, and its foundation for long-term development is sound.
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