On July 8th, Jianghuai Automobile (600418. SH) simultaneously released two announcements - the 2026 semi annual performance forecast and the June production and sales report. The former shows a year-on-year decrease of approximately 32.81 million yuan in net profit attributable to the parent company in the first half of the year; The latter disclosed that sales in June increased by 19.11% year-on-year, with sedans experiencing a surge of 132.49% year-on-year, MPVs and pickups both growing by over 40%, and new energy passenger vehicles experiencing a cumulative growth of 24.35% in the first half of the year. Loss and growth, behind a seemingly contradictory set of data, are actually a true reflection of a traditional car company actively seeking change in the industry transformation.

In the first half of 2026, the Chinese automotive industry experienced unprecedented challenges. According to data from the Passenger Car Market Information Joint Branch of the China Association of Automobile Dealers (CAAM), the cumulative retail sales of passenger cars in the first half of the year were about 8.75 million, a year-on-year decrease of about 20%.

According to the monthly analysis released by the China Passenger Car Association on July 8th, the retail sales of passenger cars in the national market reached 1.602 million units in June, a year-on-year decrease of 23.2%. Fuel vehicles have become the core factor dragging down the market, with only 600000 conventional fuel passenger cars sold in retail in June, a year-on-year drop of 39%. The development of the automotive industry in 2026 has entered the most fiercely competitive and deeply adjusted stage.

In such a big environment, understanding Jianghuai Automobile's semi annual report cannot only focus on the total loss, but also on the structure and trend - the quarter on quarter loss reduction of about 472 million yuan in the second quarter, the acceleration of product structure towards high-end and new energy, and the continuous increase in high-end brand prestige are the signals that are truly worth paying attention to.

The truth behind the narrowing of losses

Simply looking at the loss figure of 740 million yuan can easily lead people to misjudge the operating conditions of Jianghuai Automobile in the first half of the year. But after quarterly dismantling, the situation is completely different.

In the first quarter, Jianghuai Automobile's net profit attributable to the parent company was a loss of approximately RMB 606 million. In the second quarter, this number significantly narrowed to about 134 million yuan, with a month on month loss reduction of up to 472 million yuan. This means that Jianghuai Automobile's losses in the second quarter have narrowed to about one-fifth of those in the first quarter. Even compared to the same period last year, the overall loss reduction in the first half of the year was about 32.81 million yuan.

Behind the significant reduction in losses is Jianghuai Automobile's simultaneous efforts in product structure and cost control. From a product perspective, sales in June increased by 19.11% year-on-year, with sedan sales skyrocketing by 132.49% year-on-year, MPV sales increasing by 43.02%, and pickup truck sales increasing by 40.66%. The rapid growth of these high value-added models directly drove up the average price per bike and gross profit margin. From a cost perspective, in the context of the intensifying industry price war, Jianghuai Automobile has been able to achieve a quarterly loss reduction of nearly 500 million yuan, demonstrating its efforts to reduce costs and increase efficiency.

Of course, it should also be noted that the estimated loss for the first half of the year after deducting non recurring net profit is about 986 million yuan, which is an expansion from the same period last year's 916 million yuan. This reflects that under multiple pressures such as intensified market competition, losses from joint ventures dragging down investment returns of 130 million yuan, and exchange rate fluctuations leading to increased financial expenses, Jianghuai Automobile's main business profitability still needs time to recover. But the significant improvement in the quarter on quarter ratio in the second quarter indicates that the steepest downward curve is being smoothed out.

The overall profitability level of the automotive industry is also not optimistic. According to data from the China Association of Automobile Manufacturers, the industry's profit margin dropped from 6.1% to 3.2% in the first quarter of 2026, and the gross profit per bicycle decreased from 23000 yuan to 14000 yuan. The overall profit margin of the domestic automotive industry from January to May 2026 is only 3.4%, which is almost halved compared to the industrial average of 6.1%. The upstream supply chain continues to increase prices, with storage chips rising from 20 yuan to 100 yuan, lithium carbonate rising from 80000 yuan to 180000 yuan, and the overall cost of bicycles being pushed up by 6000 to 14000 yuan. Among the 11 listed car companies, 5 made money in the first quarter and 6 lost money. Jianghuai Automobile has been able to achieve significant quarterly losses reduction in such a harsh industry environment, and the effectiveness of its business adjustments has been preliminarily verified.

The password for sales growth against the trend

Against the backdrop of overall industry pressure, Jianghuai Automobile's sales data for June is impressive. The total sales volume for the month reached 31891 vehicles, a year-on-year increase of 19.11%, and passenger car sales increased by over 20% year-on-year. During the same period, the retail sales of passenger cars in China decreased by 23.2% year-on-year, and Jianghuai Automobile's growth rate outperformed the industry by more than 40 percentage points.

Upon closer inspection, the structural breakthrough is even more evident. The monthly sales of sedans were 3943 units, a year-on-year increase of 132.49%. In June, when the sales of fuel vehicles in the entire industry plummeted by nearly 40%, this increase was particularly prominent. MPV monthly sales were 2058 units, a year-on-year increase of 43.02%; The monthly sales of pickup trucks reached 5663 units, a year-on-year increase of 40.66%. The strong growth in these two segmented markets confirms Jianghuai Automobile's breakthrough in passenger and high-end directions.

The commercial vehicle sector is also noteworthy. In June, the sales volume of trucks was 12783, a year-on-year increase of 6.50%; 245 incomplete passenger vehicles, a year-on-year increase of 16.67%; 1647 multi-functional commercial vehicles, a year-on-year increase of 129.71%. With the steady rise of the logistics transportation market, the demand for transportation capacity in various sub sectors such as urban express delivery, fresh cold chain, and mainline freight continues to be released. From Zhejiang, Sichuan, Shaanxi to Jiangsu, Jianghuai 1 truck has been delivered in bulk in multiple provinces and cities across the country, covering major transportation routes such as intercity trunk lines, urban express delivery, fresh cold chain, campus group meals, and agricultural and sideline department stores.

It is worth noting that the sales growth of Jianghuai Automobile is not simply about "exchanging price for quantity". Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, pointed out that consumers have shifted from "waiting for price reductions" to "looking at technology". According to data from the China Association of Automobile Manufacturers, 83 car models were reduced in price in the first half of the year, which is 12 fewer than the same period last year; The price reduction for new energy vehicles has been reduced to a lower level of 12%. Jianghuai sedan MPV、 The concentrated increase in volume of mid to high end models such as pickup trucks precisely indicates that their product strength is gaining market recognition. In the industry transition from "roll price" to "roll technology", Jianghuai Automobile has already taken the lead in obtaining the dividends of structural upgrading.

Re evaluation of dual engine drive value

If we talk about cars MPV、 The comprehensive growth of pickup trucks is the current "foundation" of Jianghuai Automobile, while new energy and high-end are the two engines that determine its future ceiling.

In terms of new energy, Jianghuai's sales of new energy passenger vehicles increased by 24.35% year-on-year in the first half of the year. Against the backdrop of the domestic new energy passenger vehicle market facing pressure and increasing differentiation in the first half of 2026, this growth rate is not easy. In the first half of 2026, the retail sales of new energy passenger vehicles in China reached 4.704 million units, a year-on-year decrease of 14%, putting overall pressure on the market. The counter trend growth of Jianghuai's new energy passenger vehicles reflects its continuous optimization of product layout in the new energy field.

Zunjie S800

In terms of high-end development, the Zunjie brand jointly created by Jianghuai and Huawei is becoming the biggest highlight. Since its launch 13 months ago, the Zunjie S800 has delivered a total of 19000 units and has remained the best-selling luxury car in the million dollar category for 9 consecutive months. Yu Chengdong, Executive Director of Huawei and Chairman of Terminal BG, stated at the Zunjie Brand Ceremony that the cumulative delivery of the entire Hongmeng Zhixing series has exceeded 1.43 million vehicles, ranking first in the delivery speed of innovative brands.

On June 25th, the Zunjie S800 Grand Design Collection Grand View was officially launched, with a starting price of 1.388 million yuan; The Zunjie V800 and V680 MPV models have also started pre-sales simultaneously, with pre-sale prices ranging from 800000 to 1.2 million yuan and 650000 to 900000 yuan respectively. They are expected to be officially launched and delivered in early August. Zunjie brand has formed a dual flagship product matrix of "sedan+MPV".

Industry insiders have pointed out that with the launch of the Zunjie S800 Collection Grand View and the subsequent release of MPV products, Jianghuai Automobile may usher in a new round of high-speed growth.

According to securities research reports, the market generally holds an optimistic attitude towards the future of Jianghuai Automobile. In the past six months, a total of 12 institutions have released research reports on Jianghuai Automobile, predicting a maximum target price of 80 yuan and a minimum target price of 57.94 yuan in 2026, with an average of 68.97 yuan. Multiple institutions predict a net profit of between 1.2 billion and 3.8 billion yuan in 2026, with an average of approximately 2.281 billion yuan. Several securities firms such as Dongwu Securities and Kaiyuan Securities have given a "buy" rating. A securities firm pointed out in a research report that considering the high-end positioning of the Zunjie brand, MPV and SUV products on the same platform are also being developed in an orderly manner, which is expected to become a new growth point for the company's performance.

Of course, high-end also means high investment. To promote the Zunjie brand, Jianghuai Automobile's sales expenses for the first quarter of 2026 reached 743 million yuan, a year-on-year increase of 130%; The annual sales expenses for 2025 will reach 2.897 billion yuan. The initial investment in research and development and channel construction continues to erode profits. But from another perspective, it is precisely these "burning money" investments that have opened up the entrance to the million dollar luxury car market for Jianghuai Automobile, a price range that was previously almost unattainable for domestic car companies.

On the manufacturing side, in early June, the Zunjie Super Factory successfully passed the third level certification of the National Intelligent Manufacturing Capability Maturity Assessment (CMMM), marking Jianghuai Automobile's national authoritative recognition in the field of high-end luxury new energy vehicle manufacturing and entering the advanced ranks of intelligent manufacturing in China. The "digital twin" factory built on the Zunjie Super Factory can collect 300000 pieces of physical factory data per second, reducing debugging cycles by over 40% and manufacturing delivery cycles by over 20%.

In late June, the World Brand Lab's 2026 "China's 500 Most Valuable Brands List" showed that the brand value of Jianghuai Automobile increased by over 10% year-on-year. The continuous increase in brand value is a positive response from the market to Jianghuai Automobile's strategic transformation.

Conclusion: The most difficult moment is passing

Looking back at the first half of 2026, the Chinese automotive industry has undergone unprecedented challenges. The cumulative retail sales of passenger cars have declined by about 20% year-on-year, and the industry's profit margin has fallen to a historic low of 3.2%. "The basic situation of the entire industry is that it has not met expectations on a large scale. The competition in the Chinese automobile market has shifted from the "qualifying race of the incremental era" to the "elimination race of the stock era". In such a cold winter of the industry, Jianghuai Automobile has delivered a good answer.

The trend of reducing losses by 472 million yuan month on month in the second quarter has been established, and the momentum of a 19.11% increase in sales in June against the trend is accelerating MPV、 The structural breakthrough of pickup trucks and the 24.35% growth of new energy passenger vehicles are reshaping the revenue structure, and the continued leadership of Zunjie brand in the million dollar luxury car market has opened up greater imagination for the future.

Data is only the surface, structure is the essence. When a company can achieve a 19% increase in sales despite a 20% decline in the industry, when it can narrow its losses by nearly 500 million in quarters, and when its high-end brand can establish a foothold in the million dollar market, such structural reversals are far more convincing than a simple profit figure. For investors, dealers, and the public, the most difficult period for Jianghuai Automobile is coming to an end, and a new Jianghuai with a better product structure, higher brand positioning, and more diverse growth momentum is emerging.