Chery's half-year profit slips even as export sales leap by half
Chery, China's biggest vehicle exporter, booked a lower first-half profit as thinner currency gains and heavier spending outweighed a 51% jump in overseas sales.
- 8.57 billion yuan (-11.7%)
- 143.28 billion yuan (+1.2%)
- +51.0%
- 16.1% (from 13.0%)
What Happened
In a Hong Kong filing on Thursday, Chery reported first-half profit attributable to shareholders of 8.57 billion yuan (about $1.26 billion), a fall of 11.7% from a year earlier. Turnover barely moved, edging up 1.2% to 143.28 billion yuan, while the net margin came in at 6.3%.
The softer bottom line did not come from the core business. Gross profit climbed 25.1% to 23.04 billion yuan and the gross margin widened to 16.1% from 13.0%, which the company credited to its higher-margin sales abroad. Weighing the other way were a 27.1% drop in other income and gains, driven by smaller currency gains, plus a 28.3% rise in research spending to 6.67 billion yuan and a 24.1% increase in administrative costs.
- 98.97 billion yuan (+51.0%, ~69% of total)
- 59.28 billion yuan (+63.8%, 41.4% of total)
- 69.51 billion yuan (-24.8%)
By the end of June the maker ran 12 major plants worldwide, three of them outside China. Its balance sheet held 63.42 billion yuan in cash, up better than a third since the close of 2025, though the debt-to-asset ratio stood at 81.7%. Deliveries rose 7.8% to 1.28 million cars over the six months, and July shipments of 261,876 were up almost a quarter. Management said the second half would bring a wider model range, a firmer brand push and more spending on next-generation technology as it keeps expanding abroad.
Why this matters
Chery now draws close to 70% of its revenue from outside China, and this result shows the exposure that brings: the earnings dip traced to currency swings and rising costs rather than the cars themselves, whose margins actually widened. It is a snapshot of an export-led maker whose fortunes now ride on foreign markets and exchange rates.
Terms in This Story
- EV
- Electric vehicle, a vehicle powered fully or partly by electricity.
- OTA
- Over-the-air update, a software update delivered remotely to a vehicle.
- ICE
- Internal combustion engine, the conventional petrol or diesel engine type.
A brief summary; details can be imperfect — always verify against the original source.