Wuling Motors (00305) Beats Expectations With a 306% YOY

Wuling Motors (00305) Beats Expectations With a 306% YOY Increase in Net Profit - The Autonomous Vehicle Business Unlocks New Possibilities

In the first half of the year, the Group recorded a total revenue of approximately RMB 4.0 billion, up 2.0% year-over-year. Gross profit rose 13.5% to about RMB 480.0 million, with gross profit margin climbing to 12.0% from 10.8% as recorded in the corresponding period of last year. Net profit jumped 306.2% to RMB 85.8 million. The profit growth was primarily driven by higher gross margins and lower expense ratios as a result of effective cost control measures, which significantly enhanced operational results.

The Group’s automotive components and other industrial services division were key contributors to first-half growth, generating revenue of roughly RMB 2.8 billion, up 5.2% year-over-year, and operating profit of about RMB 77.9 million, a 2.6% increase. As Gross margins improved and SG&A decreased, R&D investment stepped up to support future growth. The vehicles’ power supply systems division generated approximately RMB 860.0 million in revenue, while the commercial vehicles assembly division contributed approximately RMB 310.0 million.

For the past six months, the automotive components and other industrial services division secured a total of 125 designated projects from 46 customers. In addition to the existing major customers such as SGMW, Great Wall Motors, BAIC Foton, and Chery, the Group also successfully developed new markets including the passenger vehicles of SAIC, Zhengzhou Yutong, and Weichai New Energy. In terms of expanding new openings, leveraging the advantages of overseas bases, the Group secured projects for rear axles and battery box covers in markets such as Vietnam (for VINFAST), Indonesia, and Turkey. The newly established manufacturing base in Rizhao, Shandong Province enhances the Group’s industrial influence and market competitiveness in eastern China. Supported by the newly established Shanghai Advanced Technology R&D Centre, the Group deepened the product strategy of “upgrading traditional energy technology + integrated development of new energy components”.

Leading automakers such as SAIC-GM-Wuling, Great Wall Motors, Chery, Seres, BYD, Changan Automobile and BAIC Foton, are customers of the automotive components and other industrial services division operated by Wuling Industrial, a subsidiary of the Group. The overall business has continued to grow, and the sales to expanding customers in the first half of the year exceeded RMB 1.0 billion again after 2024.

In terms of specific products, the Group’s star product, car axles, has remarkable advantages. The micro-electric car axles have surpassed 2.0 million units in cumulative production and sales. Meanwhile, the coaxial electric drive axle has been applied in the models from Changan, Geely, JAC and other automakers, and became the first to achieve commercialization in China. In terms of thermal inflation molding products, the division has expanded the second production line in 2024, continuing to accept orders for mid-to-high-end models from prominent automakers such as Great Wall Motors and BYD. At present, the Group has an annual production capacity of more than 2.0 million units of automotive components, corporate size and core competitiveness established a sound foundation for its sustainable development.

The Group’s power supply system and commercial vehicle assembly business divisions are progressing steadily. In power supply systems business division, the company maintained a product strategy of “traditional power technology upgrade + new energy power integrated development”. For the past six months, approximately 77,000 engines were produced, and revenues from castings reached roughly RMB 260.0 million, representing a 24.5% year-over-year increase.

In the commercial vehicles assembly business division, the sales of refitted vehicles and non-road vehicles remain impressive both domestically and internationally. Notably, there was a largest single domestic order of 160 golf carts for Shandong Nanshan International. Moreover, the Wuling sight-seeing vehicles and golf carts recorded overseas sales of 552 units.

In 2025, the company initiated the establishment of an independent intelligent driving development and operation company. With its consolidating R&D and innovation resources, it is expected to become a significant growth point for the Group’s emerging business. As early as 2018, the Group had already initiated the development of intelligent driving vehicles. Through years of technological accumulation, the Group has not only independently developed core chassis components such as front and rear axles, EPB and EHB, but also launched products such as intelligent charging robots, driverless patrol vehicles, driverless sight-seeing/shuttle vehicles, smart follow-up golf carts, and driverless teaching vehicles, providing diversified solutions for scenarios such as unmanned charging, unmanned sight-seeing/transfer, and unmanned logistics. By the end of 2024, intelligent charging robots had been deployed in cities such as Nanning, Tianjin, Ningbo, Shanghai and Liuzhou, and had been exported to overseas markets including southeast Asia and Europe, with a total of several hundred units deployed. Continuous development of this division is expected to deliver surprises to the market.

Looking ahead, the company will continue to optimize its product structure and accelerate the transformation and upgrading of the components division. The synergy between automotive services and sales will be fostered to enhance brand competitiveness. The power supply system business will be driven for stronger core competitiveness. The Group will continue to seize domestic and international market opportunities and expand the new energy vehicle assembly business. The market can be confident that, through the Group’s diligent efforts, the Group will continue to deliver exceptional performance that impresses investors.