Revenue RMB 51.185 Billion, Up 16.34%; Net Profit RMB 503 Million, Up 35.08%: Where Is the “Gold Content” of FAW JIEFANG’s Q3 Report?

　　On October 30, FAW JIEFANG released its Q3 report. An analysis of this Q3 report shows that cumulative profit growth outpaced revenue growth, and after excluding exchange-rate disturbances, the improvement in core business profitability was even more significant. This financial report reflects that the company is transitioning from “competing on sales volume” to “competing on structure and quality”.

Highlight 1: Cumulative profit growth outpaces revenue, highlighting core business resilience.

　　In the first three quarters, the company achieved operating revenue of RMB 51.185 billion, up 16.34% year on year; net profit attributable to the parent company was RMB 503 million, up 35.08% year on year, with profit growth significantly higher than revenue growth. More importantly, net profit after deducting non-recurring gains and losses reached RMB 137 million, a sharp increase of 191.78% year on year. The high growth in net profit after deducting non-recurring gains and losses indicates that after excluding non-recurring gains and losses (such as government subsidies), the profitability of the core business is undergoing substantive recovery, rather than relying on “extra income” to prop up appearances.

Highlight 2: Exchange losses mask genuine profitability improvement, with considerable growth after exclusion.

　　A detail in the Q3 report that is easy to overlook but crucial is the exchange-rate impact. Affected by foreign exchange fluctuations, cumulative exchange losses in the first three quarters amounted to RMB 183 million, compared with only RMB 27 million in the same period last year, a surge of 585.70% year on year. If exchange gains and losses are excluded (without considering the income tax impact), net profit attributable to the parent company in the first three quarters would actually be RMB 686 million, a year-on-year increase of as high as 71.94%; net profit after deduction would be RMB 320 million, compared with -RMB 123 million in the same period last year, a year-on-year increase of 360.89%. This means that RMB exchange-rate fluctuations significantly dragged down reported profit, but the improvement in the company’s underlying operating quality was far greater than what the headline numbers present.

Highlight 3: Single-quarter gross margin rises sharply quarter on quarter, and product mix upgrading begins to pay off.

　　Breaking down the single-quarter gross margin for Q3 reveals positive signals: the single-quarter gross margin in Q3 was 8.65%, up 1.5 percentage points year on year and up 3.0 percentage points quarter on quarter. Against the backdrop of intense price competition in the industry, gross margin rebounded against the trend, mainly thanks to the introduction of high-value products—Yingtu Aero, J6V Pro, J6E L2 navigation-assisted heavy trucks, and J6P battery-swapping tractors and other high-end and intelligent models gradually ramping up, driving improvement in per-vehicle value and product mix. This is precisely preliminary corroboration in the financial data of “from selling vehicles to selling high-value solutions” discussed in the previous round.

Highlight 4: Revenue growth is far faster than sales volume growth, and growth quality is changing.

　　In the first three quarters, cumulative commercial vehicle sales were about 215,000 units, up about 6% year on year; while revenue growth was 16.34%. Revenue growth was nearly three times sales volume growth, with the difference coming from higher average selling price per vehicle, overseas business expansion, and the added value of scenario-based service solutions. In the domestic market, Jiefang has begun delivering “vehicle + energy replenishment + finance + service” integrated solutions by scenario (such as coal transportation, L2 heavy trucks for trunk logistics, and battery-swapping tractors at ports); overseas, the localized company in Vietnam was unveiled, a strategic memorandum for 1,500 vehicles in 2027 was signed in Myanmar, and batch deliveries were made in Zambia, Africa, with overseas channels and the order foundation being gradually consolidated. This is consistent with the profit-enhancing logic of “overseas localized KD kits + services”, but it is still in the early volume ramp-up stage.

　　The “highlight” of Jiefang’s Q3 report lies not in how impressive the headline numbers are, but in the simultaneous emergence of three signals: high growth in net profit after deducting non-recurring gains and losses, a rebound in gross margin, and improvement in revenue structure. This shows that FAW JIEFANG has moved beyond pure price competition, and that its transformation toward seeking profit from structure and services has begun to generate identifiable positive feedback at the financial level.