Net profit plummeted 356%. Jianghuai suffered a huge loss of 770 million yuan in half a year, waiting for the Junjie to "save the day".

Shortly after Yu Chengdong announced that the large orders for the Zunjie S800 had exceeded 10,000, Jianghuai Automobile then released its semi - annual report.

In contrast, Jianghuai Automobile's revenue and net profit both declined in the first half of this year. The net profit even suffered a huge loss of 773 million yuan, a year - on - year plunge of 356.89%. Looking at the passenger car business, roughly calculated based on its passenger car revenue of 4.951 billion yuan and sales volume of 66,000 vehicles, the average price of its passenger cars was 75,000 yuan, which was not a significant increase compared to 73,000 yuan in 2024.

While the million - level luxury car Zunjie is selling well, Jianghuai's performance has fallen into a slump. Behind this is Jianghuai Automobile's huge investment in the Zunjie project in the early stage. In the first half of this year, its R & D investment, sales expenses, management expenses, etc. all increased significantly year - on - year. It is worth noting that this investment has not yet been converted into revenue because the Zunjie S800 began to be delivered at the end of June this year and was not reflected in the financial report.

-356.89%, a record - high decline

Jianghuai Automobile recently released its semi - annual financial report for 2025, presenting a very poor performance report.

Data shows that in the first half of the year, Jianghuai Automobile achieved an operating income of 19.36 billion yuan, a year - on - year decrease of 9.1%, and the decline rate was further expanded compared to the 4.79% decline in the same period last year. The net profit attributable to shareholders of listed companies was - 773 million yuan, a year - on - year decline of 356.89%, and the decline rate reached a new high in the semi - annual reports over the years. The net profit attributable to shareholders of listed companies after deducting non - recurring gains and losses was - 916 million yuan, compared with 91.87 million yuan in the same period last year, a year - on - year decrease of up to 1096.63%.

It is worth noting that in July this year, Jianghuai Automobile had released a pre - loss announcement for the first half of 2025, predicting that the net profit attributable to the parent company's owners in the first half of 2025 would be - 680 million yuan. Now it seems that the actual loss has exceeded the previous expectation.

Jianghuai Automobile explained that the main reasons for the performance decline are the increasingly complex international situation and the intensifying competition in the overseas automobile market, which have led to a decline in the company's export business. At the same time, the company's high - end intelligent new energy passenger car project is still in the production capacity ramp - up period and has not yet shown economies of scale.

In terms of sales volume, in the first half of 2025, Jianghuai Automobile sold 190,600 vehicles and chassis of various types, a year - on - year decrease of 7.54%. Among them, 79,500 trucks were sold, a year - on - year decrease of 2.38%; 32,900 pick - up trucks were sold, a year - on - year increase of 15.00%; and 66,000 passenger cars were sold, a year - on - year decrease of 16.12%.

Calculated based on Jianghuai Automobile's net profit and total sales volume in the first half of this year, the loss per vehicle was 4,000 yuan, that is, the company lost 4,000 yuan for each vehicle sold.

Judging from the situation in July this year, Jianghuai Automobile's sales volume was still not ideal. The monthly sales volume of trucks was 10,040, a year - on - year increase of 15.43%; the sales volume of pick - up trucks was 3,229, a year - on - year decrease of 43.01%. Among passenger cars, the sales volume of SUVs was 6,749, a decrease of 23.67%; the sales volume of sedans was 1,838, a decrease of 65.77%; and the sales volume of new energy passenger cars was 1,925, a decrease of 29.23%.

When disclosing the possible risks in the financial report, Jianghuai Automobile said that the increasingly complex international situation and the intensifying competition in the overseas automobile market may pose certain risks to exports. The intensifying industry competition and the continuous pressure on profitability will affect the healthy and sustainable development of the industry.

The hot - selling Zunjie has not become a life - saving straw yet

The high - end intelligent new energy passenger car project mentioned by Jianghuai Automobile in the financial report is Zunjie, which is a cooperation with Huawei.

Xiang Xingchu, the chairman of Jianghuai Automobile, revealed that in order to build the Zunjie brand, the enterprise invested more than 10 billion yuan to build a new super factory, established a design center in Shanghai, and implemented process reforms such as IPD integrated product development and ISC integrated supply chain management to promote the transformation of Jianghuai from a commercial vehicle manufacturer to a technology - based enterprise.

Jianghuai Automobile has really spared no expense for Zunjie.

In December 2024, the Zunjie Super Factory was officially completed, with a total investment of about 3.981 billion yuan. In January this year, Jianghuai Automobile's private placement matter was accepted by the Shanghai Stock Exchange. According to the fundraising prospectus, the total amount of funds raised in this private placement will not exceed 4.9 billion yuan. After deducting the issuance expenses, all the raised funds will be used for the high - end intelligent electric platform development project, that is, the Zunjie project. The total investment of this project is as high as 5.875 billion yuan, and the models will cover the main types of passenger cars such as sedans, SUVs, and MPVs.

In May this year, the first model of Zunjie, the S800, was finally launched, priced from 708,000 yuan to 1.018 million yuan. At the beginning of August this year, Yu Chengdong, the executive director of Huawei and the chairman of the Terminal BG, posted on social media that "the large orders for the Zunjie S800 exceeded 10,000 within 67 days of its launch."

In the million - level price segment, this achievement is quite remarkable. Data shows that in 2024, among the top 10 million - level sedans, the Maybach S - Class ranked first, with annual sales of 12,449 vehicles, leading other models by a large margin. Judging from the current large orders for Zunjie, if the production capacity can keep up, it may pose a challenge to the Maybach S - Class.

However, an embarrassing situation is that the orders for Zunjie have not yet been converted into Jianghuai Automobile's performance. And the investment in the Zunjie project has already been truly reflected in Jianghuai Automobile's semi - annual report.

The financial report shows that in the first half of 2025, Jianghuai Automobile's cumulative R & D investment was 2.216 billion yuan, a year - on - year increase of 34.47%, accounting for 11.44% of the operating income; the sales expenses were 724 million yuan, a year - on - year increase of 6.38%; the management expenses were 1.12 billion yuan, a year - on - year increase of 43.99%, accounting for 5.80% of the operating income. Jianghuai Automobile said that the change in management expenses was mainly due to the comprehensive influence of the pre - operation expenses of the Zunjie Super Factory, talent introduction, and digital transformation.

The financial report also disclosed that in the first half of this year, Jianghuai Automobile's passenger car revenue was 4.951 billion yuan. Roughly calculated based on the sales volume of 66,000 passenger cars, the average price of its passenger cars was 75,000 yuan. In contrast, the average price of Jianghuai Automobile's passenger cars in 2024 was 73,000 yuan, with little increase.

The reason behind this is that on June 26 this year, the delivery of the Zunjie S800's pioneer plan officially started, and its operating results have not been reflected in the semi - annual report. How much revenue and profit the Zunjie S800 can bring to Jianghuai Automobile can only be seen when the performance for the third quarter and the whole year of this year is released.

This article is from the WeChat official account "Sina Technology". Author: Zhang Jun. Republished by 36Kr with permission.