BRIEF: Wuling Motors profit soars on cost controls, government subsidies

Automaker Wuling Motors Holdings Ltd. (0305.HK) said on Wednesday it expects to report its profit jumped 79% last year to 42 million yuan ($5.78 million) from 23.47 million yuan in 2023, even as its annual revenue declined.

Despite the declining revenue in China’s weak auto market, Wuling said it benefited from rebate compensation from supplying electric vehicle (EV) parts; cost control measures that reduced administrative expenses; and from increased government subsidies. It also saw a reduction in its share of losses from affiliated companies.

Wuling is well known for its affordable vehicles, such as the popular Wuling Hongguang and Mini EV. But those vehicles are manufactured by its SAIC-GM-Wuling joint venture, whose earnings get recorded by SAIC Motor (600104.SH). Wuling itself primarily produces specialized vehicles, including police cars, postal vehicles, and golf carts. The company also provides automobile components and parts, with SAIC-GM-Wuling as its largest customer.

Wuling’s stock jumped over 10% in early trading on Thursday before paring those gains to close at HK$0.49 by midday break, up 7.61%.

By Lee Shih Ta

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