GAC GROUP (02238) fell more than 3%, and as of the time of writing, it was down 2.72% to HK$3.57, with a turnover of HK$42.796 million.

On January 30, GAC GROUP issued an announcement forecasting that the company's net loss attributable to equity shareholders for the year ending December 31, 2025, would be between RMB 8 billion and RMB 9 billion, a shift into loss compared to the same period last year.

During 2025, amid fierce competition and a rapidly restructuring industry ecosystem in the automotive sector, although the company's quarterly vehicle sales improved sequentially from the second quarter, its full-year vehicle sales failed to meet expectations.

Bank of America Securities released a research report stating that GAC GROUP's profit warning, projecting a net loss attributable to shareholders of 80 to 90 billion yuan for 2025, far exceeded the bank's expectation of 39 billion yuan.

After excluding one-off items, the core net loss is estimated to be between 89 and 99 billion yuan.

Based on this calculation, the net loss for the fourth quarter of 2025 is projected to be between 3.7 and 4.7 billion yuan, compared to a net profit of 704 million yuan in the same period of 2024.

The bank maintained its "Underperform" rating on both GAC's H-shares and A-shares (601238.SH), as it believes intense competition will continue to compress the profit margins of the group's self-owned brands, keeping profitability at thin levels for 2026 and 2027.