Chery releases its first annual report after going public, with revenue exceeding 300 billion yuan.

```

Author | Wang Xiaojuan

Editor | Zhou Zhiyu

On March 18, Chery Automobile (HK9973)releasedits first full-year“report card” after being listed on the Hong Kong Stock Exchange.

The financial report shows that in 2025, Chery Automobile achieved operating income of 300.287 billion yuan, an increase of 11.3% year-on-year; annual profit reached 19.507 billion yuan, a substantial increase of 36.1% year-on-year. The price war ran through the whole year, yet Chery’s profit growth rate was more than three times its revenue growth rate.

The most eye-catching core data in this report is not the 300 billion revenue scale, but the comprehensive leap in profitability. In 2025, Chery's gross profit margin increased slightly from last year's 13.5% to 13.8%, and net profit margin increased from 5.3% to 6.5%.

In this era where companies are often bleeding to gain market share, Chery's rapid accumulation of the profit pool mainly attributed to two points: the extreme release of scale effects and the optimization of single-vehicle profit structure.

On one hand, after crossing the threshold of millions of vehicle sales, fixed costs such as R&D, manufacturing, and management are significantly diluted. On the other hand, the deeper reason is that Chery is enjoying its unique overseas market price differential dividend.

In the domestic market, car companies often need to fight fiercely; in overseas markets where Chery has been deeply cultivated for years, its products often enjoy greater pricing power and margin space. Compared to traditional luxury giants like BMW, who are facing the pain of transition to electrification and pressured sales in China, Chery, relying on its displaced competition in incremental markets, has instead fortified its profit moat.

If there is a standard answer in the current automotive industry, it is certainly“new energy + intelligence”. Chery, however, demonstratesanother path:using the high profits from overseas fuel vehicles to support the costly investments in domestic new energy and intelligence.

This approach also seems relatively steady.

While ensuring fuel vehicle exports as a “cash cow” continually feed the business, Chery’s efforts in the new energy sector are also not to be underestimated. Through intensive launches of a multi-brand strategy (such as Chery, Exeed, Jetour, iCAR), its new energy product matrix is quicklybeing filled, forming a virtuous cycle of “oil-electric synergy.”

But the fragility of this model is also obvious. Chery’s profits are highly dependent on overseas markets, which are precisely where the biggest variables lie — EU tariff increases have already taken effect, US tariff barriers continue to build, and emerging markets like Turkey and Brazil are tightening local protection policies. Once export channels are blocked, it’s not just a slowdown issue, but the profit structure may be comprehensively shaken. For a company that just went public, this risk exposure deserves high attention from investors.

In addition,Cherystill needs to continue to improve its perception in terms of intelligence. Although Chery has always touted its "engineering spirit" in technological R&D, in areas such as advanced smart driving and intelligent cabins, which are strongly perceived by consumers, its brand image is still not as prominent as some leading new forces.

In the second half of the industry’s intelligence competition, how to turn huge R&D investment into “technology premium” in the end market is the hurdle Chery management must overcome.

In summary, Chery Automobile’s 2025 financial report proves its deep expertise in global layout and cost control. As “survival” becomes the main theme of the industry, Chery, holding nearly 20 billion net profits, undoubtedly has the heavyweight chip to enter the next era.

But to secure a seat at the table in the upcoming global intellectual-electric battle, Chery still needs to deliver a more convincing answer in terms of core technology moat and global operational risk resistance.Risk Warning and DisclaimerThe market involves risks, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the special investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. If investing accordingly, responsibility is at your own risk. ```