Gasgoo Munich- On April 28, Chery Automobile Co., Ltd. released its unaudited financial results for the first quarter of 2026, reporting revenue of 65.87 billion yuan. Gross profit reached 10.564 billion yuan, marking a 24.9% year-on-year increase, while gross margin improved significantly to 16.04% from 12.39% a year earlier.
Image source: Chery Automobile
Net profit attributable to shareholders came in at 4.17 billion yuan, representing a decline compared with the same period last year.
Total profit for the period stood at 4.322 billion yuan, down from 4.726 billion yuan in the first quarter of 2025. The decrease was primarily attributed to higher spending on sales and distribution, increased R&D investment, and other operating expenses.
From an operational perspective, revenue edged down 3.45% year-on-year, but lower raw material and production costs helped lift profitability.
Chery's balance sheet continued to strengthen, with total assets rising to 279.038 billion yuan by the end of the quarter, up from 259.347 billion yuan at the end of 2025. Net assets increased to 55.31 billion yuan from 50.798 billion yuan over the same period. The company also reported a sharp reduction in financial expenses and solid operating cash flow, indicating ongoing improvements in financial structure.
Chery continued to ramp up investment in research and development, with first-quarter spending reaching 2.85 billion yuan, up 25.5% year-on-year. Cumulative R&D investment has now exceeded 30 billion yuan, with a focus on electrification, intelligent technologies, smart cockpits, and advanced driver assistance systems.
On the business side, Chery's global expansion strategy provided key support to performance. The group sold 601,712 vehicles in the first quarter, including 161,202 new energy vehicles. Overseas exports reached 393,311 units, up 53.9% year-on-year, maintaining Chery's leading position among Chinese auto exporters.
The results come amid a challenging domestic market. In the first quarter of 2026, China's auto industry saw overall sales decline by more than 20% year-on-year, while industry-wide profit margins fell to a historic low of 2.9%. Penetration of new energy vehicles also retreated from over 50% at the end of last year to 42%.
Against this backdrop, Chery's improving margins and accelerating international expansion highlight a degree of operational resilience as it navigates a volatile market environment.
