Chery Auto reported an 11.7% decline in profit attributable to owners in the first half of 2026, as lower foreign-exchange gains offset stronger overseas operations and rapid growth in its new energy vehicle business. Revenue remained broadly stable at 143.28 billion yuan, while gross profit increased 25.1% to 23.04 billion yuan.
Profit attributable to owners fell to 8.57 billion yuan from 9.70 billion yuan a year earlier. Profit for the period declined to 9.02 billion yuan from 9.91 billion yuan, while the company’s net profit margin stood at 6.3%.
Overseas Business Drives Revenue Growth
Overseas markets generated 98.97 billion yuan of revenue in the first half, an increase of 51% from a year earlier. International operations accounted for about 69% of Chery’s total revenue during the period.
Chery said its overseas business contributed to the improvement in gross margin because sales outside China generally carry higher gross margins than those in the domestic market.
Gross margin increased to 16.1% from 13.0% a year earlier, while gross profit rose to 23.04 billion yuan.
As of June 30, Chery operated 12 major production bases globally, including three overseas facilities.
NEV Revenue Jumps 63.8%
Chery’s new energy vehicle business continued to expand rapidly during the period. Revenue from NEVs increased 63.8% year-on-year to 59.28 billion yuan.
NEV revenue accounted for 41.4% of Chery’s total revenue, compared with 25.6% a year earlier.
At the same time, revenue from internal-combustion-engine vehicles declined 24.8% to 69.51 billion yuan from 92.45 billion yuan.
Overall passenger vehicle revenue remained broadly stable at 128.8 billion yuan, reflecting the shift in Chery’s business mix toward electrified vehicles.
R&D Spending Increases
Chery increased research and development spending by 28.3% to 6.67 billion yuan during the first half.
The company directed the additional spending toward electrification technologies, vehicle platforms, assisted-driving systems and smart cockpit technologies.
Administrative expenses also increased 24.1% to 3.29 billion yuan, while income tax expenses rose 18.6% to 2.22 billion yuan.
Profit contributions from joint ventures and associates declined 37.9% to 437 million yuan.
Foreign-Exchange Gains Weigh on Profit
The decline in reported profit was primarily linked to items outside Chery’s core operating performance.
Other income and gains fell 27.1% to 6.03 billion yuan from 8.27 billion yuan, mainly because of lower foreign-exchange gains.
The company also reduced its borrowing costs. Finance expenses declined 62.1% to 549 million yuan following loan repayments.
Cash Position Strengthens
Chery ended the first half with 63.42 billion yuan in cash and cash equivalents, up 35.1% from the end of 2025.
Bank loans and other borrowings declined to 10.00 billion yuan from 15.92 billion yuan at the end of last year.
The company’s debt-to-asset ratio stood at 81.7%.
The first-half results show Chery continuing to shift its business toward overseas markets and electrified vehicles, with NEVs accounting for a growing share of revenue even as foreign-exchange-related gains and other non-operating factors weighed on reported profit.