GWM expects first-half 2026 profit to decline sharply despite higher sales and revenue, as foreign-exchange movements and lower one-off subsidy income weighed on earnings.
The Chinese automaker also announced plans to repurchase H shares on the Hong Kong Stock Exchange, saying the move reflects confidence in its long-term business outlook.
Profit Expected to Fall More Than 58%
GWM said net profit attributable to shareholders for the first half of 2026 is expected to range between 2.35 billion yuan (US$347 million) and 2.6 billion yuan, representing a year-on-year decline of 58.97% to 62.92%.
Net profit excluding non-recurring gains and losses is projected at between 1.5 billion yuan and 1.75 billion yuan, down 51.14% to 58.12% from the same period last year.
The company said vehicle sales and revenue both increased during the reporting period, supported by continued overseas expansion and higher-value product sales in the domestic market.
Foreign-Exchange Losses and Lower Subsidy Income Weigh on Earnings
According to GWM, the decline in profit was primarily driven by delays in recovering overseas tax-policy subsidy income. The company recognized 2.27 billion yuan of such income during the first half of 2025.
Foreign-exchange fluctuations also affected earnings.
GWM reported an unaudited comprehensive foreign-exchange loss of approximately 266 million yuan during the first half of 2026 after accounting for gains from foreign-exchange hedging activities.
Compared with the same period last year, foreign-exchange gains declined by approximately 1.76 billion yuan, shifting from a gain of about 1.49 billion yuan in the first half of 2025.
Company Launches H-Share Repurchase Program
In a separate filing with the Hong Kong Stock Exchange, GWM said it intends to repurchase H shares in the open market under a mandate approved by shareholders at its annual general meeting on June 26.
The buyback will be funded using internal resources, with repurchased shares either cancelled or held as treasury shares.
Under the authorization, GWM may repurchase up to 10% of its issued H shares, excluding treasury shares.
The company said the share repurchase demonstrates confidence in its future prospects while maintaining sufficient financial resources to support both the buyback and ongoing operations.
It added that the timing, size and purchase price of any repurchases will depend on market conditions and management’s discretion.
Overseas Markets Continue to Drive Growth
GWM sold 108,080 vehicles globally in June, down 2.36% from a year earlier but up 7.65% from May.
First-half global vehicle sales reached 583,895 units, an increase of 2.48% year over year.
International markets remained the company’s primary growth engine. Overseas sales climbed 47.44% to 291,426 vehicles during the first six months of the year, accounting for nearly half of total deliveries.
Domestic sales, however, declined 21.41% year over year to 292,469 vehicles.
In the new energy vehicle (NEV) segment, GWM delivered 144,634 vehicles during the first half, down 9.84% from the same period last year. June NEV sales totaled 34,659 units, decreasing 4.80% year over year while increasing 13.83% compared with May.
GWM’s Hong Kong-listed shares have declined about 52% since the beginning of the year, with the planned share repurchase representing the company’s latest effort to support investor confidence.