Dongfeng Automobile Corporation Posts Profits in 2024 Despite Decline in Vehicle Sales

The Dongfeng automobile conglomerate has released its financial report for 2024, marking a significant milestone after a year of challenges.

The group's total revenue reached RMB 1061.97 billion yuan in 2024, a 6.9% increase from the same period last year, driven mainly by the contribution of its passenger vehicle business and significant enhancements in autonomous and new energy vehicle sales.

In terms of gross profit, Dongfeng recorded RMB 135.85 billion yuan in 2024, with a year-over-year growth rate of 38.2%, pushing the gross profit margin to 12.8%. The company also reported an improvement in net earnings, after previously reporting losses, driven by a marked reduction in net loss of RMB 38.87 billion.

The asset-to-liability ratio maintained at 52.4% for Dongfeng Automobile Corporation, while the operating present value rose to 16.4%, up 7.1%. EBITDA and Earnings Before Interest and Taxes also reported an increase. The company's cash conversion ratio improved significantly last year and exceeded 88%.

When it comes to sales, Dongfeng Corporation sold a total of 189,590 vehicles in 2024, representing a decrease of 9.2% compared to the same period last year. Among these sales, East Wind Vehicles recorded RMB 110.52 million in revenue in 2024. The company's vehicle production was significantly affected by global market trends during that time.

In terms of its domestic brands and product lineup, Dongfeng Dada (including Geely Da peng, Envision) reported a total of 63.12 thousand vehicles sold in 2024, representing an annual sales decrease of 12.7%. The corresponding ratio for Dongfeng Honda is 42.82 thousand, down by 29.2% from the previous year.

On its autonomous brand front, Dongfeng recorded a significant increase in sales of 43.89 million vehicles in 2024 with a growth rate of 26.4%, up by 8.57 million units compared to last year. The total sales figures for its joint-brand vehicle represented a proportionate share to the market, while marking an upward trend to account for over 22% on new energy sales.

Dongfeng also made important investments in research and development across various sectors throughout 2024. In the 2025 automotive lineup, Dongfeng will introduce new models that will support smart driving technology, such as the first L3 level car with Huawei DryDrive & WiMiQ system. The planned launch date for these products isn't set yet.

Among its self-branding strategies, Dongfeng plans to officially launch an additional four new model lineup by 2025 and expand the types of vehicles sold on the market, including MPV, SUV, and sedan models. With an expected investment of nearly RMB 86 billion in innovation, that's up from an annual development budget for 2024.

In 2025, Nami brand will release the second model with advanced features after successfully launching a first strategy car model last year. Furthermore, Dongfeng Automobile Corporation plans to launch more than one vehicle model lineup under new brands to provide better options for customers.

In addition, the company's smart automotive research focuses are also planned in 2025.

Dongfeng also confirmed plans for full-scale development of the new generation solid-state battery technology and production deployment within the next two years.