GAC Group boasts 87.07% YoY surge in H1 2021 net profit

Shanghai (Gasgoo)- GAC Group announced on Monday its gross revenue for the first half of 2021 reached 34.572 billion yuan ($5.345 billion), jumping 34.83% from the previous year. Its semi-annual net profit attributable to shareholders surged 87.07% to 4.337 billion yuan ($670.573 million) and the basic earnings per share stood at 0.42 yuan ($0.065), versus 0.23 yuan ($0.036) for the year-ago period.

Trumpchi GS4; photo credit: GAC Motor

To be specific, the complete vehicle manufacturing business gained 21.158 billion yuan ($3.271 billion) in the first-half revenue, representing a 41.91% year-on-year leap. Moreover, the revenues from the auto parts manufacturing business and business services grew 66.81% and 21.02% from a year earlier respectively.

GAC Group attributed its revenue growth to the stable performance of domestic economy and the upward momentum in auto outputs and sales thanks to the year-ago low base and the enriching product lineup.

For the first half of this year, the group's auto outputs and sales reached 1.0014 million and 1.0265 million units, jumping 25.61% and 24.49% year over year respectively despite the chip shortage and resurgence of coronavirus cases.

During the first two quarters, GAC Group rolled out a number of all-new and refreshed models under its self-owned brands, including the AION Y, the Trumpchi EMPOW, the AION S Plus, and the Trumpchi GS4 PLUS.

Two main Sino-Japanese joint ventures remarkably contributed to the group's sales increase. In the first six months, GAC Honda sold 371,578 new vehicles (+16.68% YoY), while GAC Toyota's auto sales were up by 30.02% to 417,228 units.

In the reporting period, GAC Group poured roughly 2.477 billion yuan ($382.986 million) into R&D business, posting a 9.41% year-on-year increase due to the greater efforts for improving its in-house development and innovation capabilities, and boosting the development of both new energy vehicle models and traditional fuel models.