By Jiahui Huang
BAIC Motor's shares fell sharply in Hong Kong after the company guided for a significant drop in its 2024 net profit, as the state-owned automaker has faced intense competition in China's electric vehicle industry.
Its shares fell 11.2% to 2.29 Hong Kong dollars, equivalent to 29 U.S. cents, on track for their largest one-day percentage loss since October 2024.
The Beijing-based company said late Thursday that it expects its net profit to have fallen 69% to 950 million yuan, equivalent to US$131.1 million, in 2024. The sharp decline is largely due to intensified competition in the domestic auto industry last year, which led to lower sales, the company said in a statement.
The company's increased investment to enhance its competitiveness also contributed to the lower net profit, it added.
As one of China's "big four" state-owned automakers, BAIC has faced increasing competition from rivals, such as BYD, XPeng, NIO and Li Auto. The EV industry has been in a price war since last year, with multiple automakers cutting their prices on flagship models and offering promotions to attract buyers.
BAIC also operates a joint venture with Mercedes-Benz Group called Beijing Benz, but the JV has been under significant pressure from local EV manufacturers in China.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
March 20, 2025 22:52 ET (02:52 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。