Gasgoo Munich- On August 20, Chery Automobile Co., Ltd. (stock code: 9973.HK) released unaudited interim results for the six months ended June 30, 2026. The report highlighted five key takeaways:
First, profitability continues to climb. During the period, Chery Automobile generated revenue of 143.28 billion yuan — a modest 1.2% year-on-year increase — while gross profit surged 25.1% to 23.04 billion yuan. The gross margin expanded from 13% a year earlier to 16.1%. Profit for the period hit 9.02 billion yuan, translating to a net margin of 6.3%, with profit attributable to owners of the company reaching 8.57 billion yuan.
Image Source: Chery Automobile
Data from the National Bureau of Statistics puts the profit margin for China's auto manufacturing sector at 3.8% in the first half of 2026. Meanwhile, the China Association of Automobile Manufacturers (CAAM) reports that the average margin for domestic vehicle manufacturing sat at roughly 1.5%. Against this backdrop, Chery Automobile's 6.3% net margin stands out — a testament to the quality of its earnings.
Second, overseas revenue jumped 51%, marking a fresh breakthrough in its globalization strategy. Overseas market revenue reached 98.97 billion yuan during the reporting period. Bolstered by 12 major production bases globally — including three overseas — and a sales and service network spanning Europe, South America, Africa, and the Middle East, Chery Automobile is steadily strengthening its localized production and operational capabilities.
Third, new energy revenue surged by more than 60%. In the first half, revenue from the new energy business climbed 63.8% to 59.28 billion yuan. Its share of total revenue rose from 25.6% a year ago to 41.4%. As the revenue mix accelerates its transformation, new energy vehicles have become a critical engine for the company's growth.
Fourth, R&D spending rose 28.3%, with a sharp focus on electrification and intelligence. Chery Automobile invested 6.67 billion yuan in research and development during the period. The spending continues to target core areas such as electrification technology, automotive platform architecture upgrades, and solutions for both assisted driving and smart cockpits.
The company's five brands — Chery Automobile, Jetour, Exeed, iCAR, and Luxeed — are operating in synergy to cover diverse segments ranging from the mass market and high-end mobility to family off-roading, tech-focused Gen Z consumers, and smart driving.
Fifth, the financial structure is undergoing continuous optimization, bolstering resilience against risk. By the end of the reporting period, cash and cash equivalents stood at 63.4 billion yuan — a 35.1% increase since the end of 2025. At the same time, bank loans and other borrowings fell 37.2% to 10.00 billion yuan from 15.92 billion yuan, while financial costs dropped 62.1% to 549 million yuan from 1.45 billion yuan. Chery Automobile maintains its profitability among the industry leaders, with a balance sheet that continues to strengthen.
Looking to the second half, Chery Automobile plans to broaden its product lineup and move further upmarket. The automaker intends to ramp up investment in new technologies, accelerate its transition toward electrification and intelligence, and continue to consolidate and expand its global advantages.
