GAC Energy Technology Established Amidst Profit Decline in 2025

Recently, the establishment of GAC Energy Technology (Chongqing) Co., Ltd. has drawn attention from the industry. The company's legal representative is Liu Zhihui, with a registered capital of 30 million yuan. Its business scope widely covers high-tech fields such as artificial intelligence application software development and IoT technology research and development. The equity structure shows that the company is jointly held by GAC Aion New Energy Automobile Co., Ltd., a subsidiary of GAC Group, and the Chongqing Jiangbei Urban Operation Management Group Co., Ltd. This move undoubtedly adds new momentum to GAC Group's layout in the fields of new energy and intelligent technology. However, alongside the establishment of GAC Energy Technology (Chongqing) Co., Ltd., GAC Group's operating performance for the first half of 2025 appears to be grim. According to GAC Group's performance forecast, the company expects a net profit loss attributable to shareholders of 1.82 billion to 2.6 billion yuan, with a non-recurring net profit loss reaching 2.12 billion to 3.2 billion yuan, a stark contrast to the profit situation in the first half of 2024. Data shows that GAC Group achieved a net profit attributable to shareholders of 1.516 billion yuan in the first half of 2024, but within just a year, the company has plunged into such deep losses, with its operating performance deteriorating sharply. From the production and sales data, GAC Group's car sales in the first half of 2025 totaled 755,300 units, a year-on-year decrease of 12.48%, with both production and sales showing significant declines. Among the various brands, only GAC Toyota recorded a slight increase in sales, while other brands such as GAC Honda, GAC Trumpchi, and the new energy brand GAC Aion experienced varying degrees of sales declines. Especially in the new energy vehicle sector, GAC Group's overall sales fell by 6.08% year-on-year, casting a shadow over the company's transformation path. Faced with such a severe operating situation, GAC Group has not remained idle. At the 2025 China Automotive Forum, GAC Group Chairman and General Manager Feng Xingya stated that the company will fully enter a 'wartime state' to effectively tackle the 'three major battles' regarding user demand, product value, and service experience, aiming to recreate a new GAC. Feng emphasized that the automotive industry has entered an era of significant transformation, and traditional automakers must swiftly adjust their strategies to find suitable breakthrough paths. To this end, GAC Group has initiated a series of reform measures, including establishing an operational headquarters, implementing integrated operations for its independent brands, and introducing the IPD product development process system to enhance operational efficiency and market competitiveness. Additionally, GAC Group has increased its investment in independent brands, planning to launch 22 new models in the next three years, covering all mainstream new energy power forms such as EV, PHEV, and REV. By 2027, the company aims for its independent brands to account for over 60% of the group's total sales and challenge a target of 2 million units in sales for independent brands. However, based on the actual situation in the first half of the year, these reform measures have not yet produced immediate results. GAC Group's new energy brand GAC Aion has also encountered challenges with employee stock ownership, impacting the company's stable operations. Nevertheless, Feng remains confident about the future, emphasizing that GAC Group will continue to rely on core technological innovation to reinforce performance strengths and carefully craft emotionally appealing value for customers.