A GWM SUV model on display at the Beijing Auto Show in April 2026. Credit: CnEVPost
- GWM expects first-half net profit attributable to shareholders to fall 58.97% to 62.92% from a year earlier, even as sales volume and revenue increased.
- The company plans to repurchase H shares in the open market, saying the move reflects confidence in its business outlook.
GWM (HKEX: 2333) flagged a sharp decline in first-half profit and plans to repurchase H shares, showing the Chinese automaker is still facing earnings pressure from foreign-exchange swings and changes in one-off gains even as overseas sales grow rapidly.
The company said Tuesday that net profit attributable to shareholders of the parent for the first half of 2026 is expected to be 2.35 billion yuan ($347 million) to 2.6 billion yuan, down 58.97% to 62.92% from a year earlier.
GWM expects first-half net profit attributable to shareholders after non-recurring gains and losses to be 1.5 billion yuan to 1.75 billion yuan, down 51.14% to 58.12% year-on-year.
The company said sales volume and revenue increased during the reporting period. Overseas growth and expansion of high-value models in China continued to lift its global brand strength.
Still, GWM said the profit decline was mainly due to a delay in the recovery of overseas tax-policy subsidy income. The company received 2.27 billion yuan of such income in the same period last year.
Foreign-exchange fluctuations also weighed on profit. GWM said its comprehensive foreign-exchange loss in the first half was about 266 million yuan, unaudited, after exchange gains and losses were offset by gains from foreign-exchange hedging products.
That led to a year-on-year decrease of about 1.76 billion yuan in foreign-exchange gains, compared with a gain of 1.49 billion yuan in the same period last year.
In a separate Hong Kong stock exchange filing, GWM said it will repurchase H shares in the open market from time to time under a previously granted mandate. The repurchase will be funded by the company’s internal resources, and the shares bought back will be canceled or held as treasury shares.
The mandate was approved by shareholders at the company’s 2025 annual general meeting held on June 26. GWM may repurchase no more than 10% of the total number of H shares in issue as of the date the relevant resolution was passed, excluding treasury shares.
GWM said repurchasing shares under current circumstances will demonstrate the company’s confidence in its business outlook and ultimately benefit the company and shareholders.
The company also said its existing financial resources are sufficient to support the repurchase while maintaining a healthy financial position.
Any repurchase remains subject to market conditions and the company’s discretion. GWM said there is no assurance as to the timing, quantity or price of any repurchase.
GWM’s earnings pressure comes alongside changes in its sales structure. The company sold 108,080 vehicles globally in June, down 2.36% year-on-year but up 7.65% from May.
In the first half, GWM sold 583,895 vehicles, up 2.48% year-on-year. Overseas markets remained the main source of growth, with first-half overseas sales reaching 291,426 vehicles, up 47.44% and accounting for 49.91% of total sales.
GWM Monthly Sales 2024-2026
Month
2024
2025
2026
January
104,030
80,933
90,312
February
71,027
77,883
72,594
March
100,276
97,991
106,198
April
94,796
100,061
106,312
May
91,460
102,231
100,399
June
98,080
110,690
108,080
July
91,285
104,372
August
94,461
115,558
September
108,398
133,639
October
116,799
143,078
November
127,394
133,216
December
135,286
124,020
GWM monthly sales
2024
2025
2026
That contrasted with the decline in its home market. GWM sold 292,469 vehicles in China in the first half, down 21.41% year-on-year.
In the new energy vehicle (NEV) segment, GWM sold 144,634 NEVs in the first half, down 9.84% year-on-year. June NEV sales were 34,659 vehicles, down 4.80% from a year earlier but up 13.83% from May.
GWM’s Hong Kong-traded shares have fallen 52% so far this year, making the repurchase plan its latest move to stabilize market expectations.
GWM H10 is a boxy large SUV with up to 180 kilometers of pure-electric range.
($1 = 6.7770 yuan)
