The 2024 financial reports released by auto companies showcase a diverse landscape, with private enterprises generally thriving while state-owned enterprises lag behind and new-energy vehicle startups struggling with profitability.

The season for annual financial reports has arrived, revealing mixed fortunes among automakers. For instance, BYD continues to surge ahead, achieving annual revenue exceeding RMB 700 billion for the first time and net profit of RMB 40.254 billion, nearly matching Tesla's US$7.1 billion during the same period. Dongfeng, Great Wall, and Geely Automobile have also witnessed performance improvements, with recent strategic transformations bearing fruit. Among new-energy vehicle startups, Li Auto leads the pack, while Xpeng Motors has halted its decline and rebounded. Conversely, GAC and BAIC have seen revenue declines due to poor market sales, JAC Motor has incurred its largest loss since listing in 2024, and NIO's financial data remains unoptimistic.

In terms of overall performance, private auto companies, including new-energy startups, exhibit a stronger growth momentum than state-owned enterprises. However, due to their smaller scale, new-energy startups still lag behind "traditional" private automakers in revenue and profit. Therefore, state-owned enterprise reforms are crucial for them to maintain their leadership and backbone role in the industry.

State-owned Enterprises: Accelerating the "Elephants' Turn"

As the backbone of China's auto industry, state-owned enterprises' development attracts significant attention. However, they have been slow to transform towards electrification, intelligence, and networking, with some performing poorly in the market. The 2024 financial report data reflects this underperformance.

Among the six major auto groups, Dongfeng Group stands out. On March 26, Dongfeng Motor Group Co., Ltd. announced its 2024 annual results, with total revenue of RMB 106.197 billion, a 6.86% year-on-year increase; gross profit of RMB 13.585 billion, up 38.2% year-on-year; and a profit attributable to equity holders of RMB 58 million, compared to a loss of RMB 3.887 billion in the same period last year. Industry insiders attribute Dongfeng's success to its accelerated transformation towards new energy and intelligent networking, as well as its promotion of independent brands. In 2024, Dongfeng sold 394,600 new energy vehicles, a 13.4% year-on-year increase, while its independent passenger vehicle segment reported robust growth with annual sales of 438,900 vehicles, up 26.4% year-on-year.

Despite revenue growth, Changan Auto's profits declined. The financial report shows an annual operating revenue of RMB 159.7 billion, a 5.58% year-on-year increase, and a net profit of RMB 7.32 billion, down 35.37% year-on-year. However, Changan's total sales for the year reached 2.684 million vehicles, a seven-year high. Experts attribute the profit decline to significant investments in the new energy business and strategic adjustments in joint venture brands.

In contrast, GAC Group and Beijing Automotive performed poorly. GAC Group's 2024 total operating revenue was RMB 107.784 billion, down 16.9% year-on-year, with net profit attributable to shareholders of listed companies at RMB 824 million, down 81.4% year-on-year. Bright spots include a 67.6% year-on-year increase in overseas sales. GAC attributed this to price competition and changes in the competitive landscape, coupled with increased business investment and expenses related to internationalization strategies. Beijing Automotive's revenue in 2024 was RMB 192.496 billion, down 2.8% year-on-year, with net profit attributable to shareholders of listed companies at RMB 956 million, down 68.5%. Media reports noted this as Beijing Automotive's lowest net profit since listing, with insiders blaming price wars and sluggish electrification transformation for Beijing Benz's declining volumes and prices, compounded by Beijing Hyundai's losses and increased R&D expenditures.

FAW Jiefang, an A-share listed company under FAW Group, reported 2024 revenue of RMB 58.581 billion, down 8.93% year-on-year, with net profit of RMB 622 million, down 22.78% year-on-year. Experts believe that despite active investments and layouts in new energy vehicles, market competition and rapid technology updates create uncertainty for FAW Jiefang's future market position.

SAIC Motor's financial report has not been disclosed, but based on previous performance forecasts, SAIC expects net profit attributable to shareholders of listed companies to be between RMB 1.5 billion and RMB 1.9 billion in 2024, down 87% to 90% year-on-year. This marks SAIC's first significant pre-announced annual performance decline in recent years, with net profit attributable to shareholders of listed companies decreasing by over RMB 12 billion year-on-year. The decline is attributed to the shrinking fuel vehicle market, escalating price wars, and ineffective new energy vehicle transformations.

JAC Motor, another state-owned automaker, reported 2024 annual operating revenue of RMB 42.116 billion, down 6.28% year-on-year, with a net loss attributable to shareholders of listed companies of RMB 1.784 billion, marking its largest loss since listing. JAC attributed the loss to poor operating performance of its associated enterprise Volkswagen (Anhui) and asset impairments. However, JAC's strong commercial vehicle sales and cooperation with Huawei on the Junjie S800, set to launch in May, are expected to improve this year's financial results.

On March 29, Gou Ping, Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, stated at the China EV100 Forum that strategic restructuring of central auto enterprises should be carried out to increase industrial concentration. This signals accelerated integration of central auto enterprises, expected to resolve long-standing issues of homogeneous competition and resource dispersion. As state-owned enterprise reforms deepen, the performance of state-owned automakers this year and beyond is promising.

Private Enterprises: Leading Chinese Brands

Private auto companies, exemplified by BYD, have emerged as pioneers in the auto industry transformation, serving as the backbone of Chinese brands.

BYD's 2024 financial report shows total operating revenue of RMB 777.102 billion, up 29.02% year-on-year, with net profit attributable to shareholders of listed companies at RMB 40.254 billion, up 34% year-on-year. Revenue from automobiles, automobile-related products, and other businesses totaled RMB 617.382 billion, accounting for 79.45% of total revenue. Notably, BYD optimized supply chain management and improved production efficiency, reducing the cost per vehicle by 14% year-on-year and increasing the gross profit margin to 22.3%. With continuous sales growth and improving profitability, BYD's next financial report is poised to set new records.

Geely Automobile, once an "autonomous leader," also reported gratifying financial results. Its 2024 and Q4 financial reports show total revenue of RMB 240.2 billion, up 34% year-on-year, and net profit attributable to shareholders of listed companies at RMB 16.6 billion, up 213% year-on-year. Operating profitability significantly improved, with net profit after deducting non-recurring gains and losses at RMB 8.5 billion, up 52% year-on-year. Geely's success is attributed to three factors: a shift in sales structure towards new energy vehicles, strategic adjustments optimizing resource allocation and clarifying the brand matrix, and accelerated AI layout. In 2024, Geely's R&D expenses reached RMB 10.4 billion, up 33% year-on-year, completing a full-domain AI layout, including the Xingrui Smart Computing Center with 23.5 EFLOPS computing power and the auto industry's first full-stack self-developed large model, "Geely Xingrui AI Large Model."

Great Wall Motors also delivered a strong financial report, with operating revenue of RMB 202.195 billion, up 16.73% year-on-year, and net profit attributable to shareholders of listed companies at RMB 12.692 billion, up 80.76% year-on-year. Great Wall attributed its performance growth to a commitment to high-quality development, quality adherence, product experience innovation, overseas sales growth, and domestic product structure optimization. Notably, Great Wall Motors' gross profit margin increased by 1.36 percentage points year-on-year to 19.51%, primarily due to an increased proportion of high-unit-price models. In 2024, Great Wall Motors' revenue per vehicle was RMB 163,800, up RMB 23,000 year-on-year, with net profit per vehicle at RMB 10,300, up RMB 4,600 year-on-year.

The financial reports of two other private automakers are equally impressive. Thalys achieved revenue of over RMB 100 billion for the first time in 2024, totaling RMB 145.176 billion, up 305.04% year-on-year, with net profit attributable to shareholders of listed companies at approximately RMB 5.946 billion, turning from loss to profit year-on-year. Xiaomi Group's 2024 total revenue increased by 35% year-on-year to RMB 365.9 billion, with innovative business revenue, including smart electric vehicles, totaling RMB 32.8 billion. As of December 2024, Xiaomi Group held over 42,000 patents globally, over 1,000 related to smart electric vehicles.

Private enterprises have always been the most dynamic force in the national economy, significantly contributing to technological innovation, market expansion, industrial chain improvement, and international competition in the auto industry. In the foreseeable future, private automakers like BYD, Geely, Great Wall, Thalys, and Xiaomi will continue to play increasingly important roles.

New-energy Vehicle Startups: Navigating Challenges

Overall, the 2024 financial reports of new-energy vehicle startups present a mixed picture. While all have achieved revenue growth, with NIO aiming to become the second new-energy startup to achieve full-year profitability, Xpeng Motors has rebounded from losses, narrowing deficits and increasing gross profit margins. However, each startup still faces unique challenges.

In 2024, Li Auto maintained its leading position among new-energy vehicle startups. Financial reports indicate that the company's revenue surged by 16.6% year-on-year, with vehicle sales revenue amounting to RMB 138.5 billion, constituting 95.8% of total revenue and marking a 15.2% year-on-year increase. Nonetheless, Li Auto encountered a challenge of "rising revenue, stagnant profit," as its net profit for the year stood at RMB 8 billion, a 31.9% year-on-year decline. Furthermore, the vehicle gross profit margin slipped from 21.5% in 2023 to 19.8% in 2024. Analysts attribute this to the popularity of models like the Li L6 and L7, which are priced lower than the Li L9, combined with heightened research and development expenses. Despite these operational pressures, Li Auto's long-term growth trajectory remains robust.

Leaping Motor, adhering to the "volume for profit" strategy, achieved notable success in 2024. According to the latest financial report, the company recorded revenue of RMB 32.16 billion, a 92% year-on-year increase, while net loss narrowed by 33.18% to RMB 2.82 billion. The most striking aspect of the report was the substantial rise in Leaping Motor's gross profit margin, from 0.5% in 2023 to 8.4% in 2024. Zhu Jiangming, the founder and chairman of Leaping Motor, provided insight into this achievement, noting that the company's self-developed and self-manufactured core components now account for over 65% of the total vehicle cost. Through product and component integration, the component sharing rate within the same series has reached 85%. These effective cost-cutting measures, coupled with the scale effect from increased sales volume, have significantly boosted Leaping Motor's profitability. However, in terms of revenue scale, Leaping Motor still trails behind NIO and Xpeng Motors, indicating room for further growth.

Note: This article was originally published in the "Hot Spot Tracking" column of the May 2025 issue of "Auto Review" magazine. Stay tuned for more updates.

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