The country's old-licensed cars are in the middle of losing and losing! According to the latest financial report, the net profit of jiang huai has been negative for six consecutive quarters, with a loss of $606 million in the first quarter of 2026, and a loss of $1. 703 billion for the whole year of 2025, with the deduction of non-net profits being negative for nine consecutive years. Even more strangely, corporate revenue has increased steadily, with 46,569 million yuan in 2025, or 10. 35 per cent in the same year, and 114. 77 billion yuan in the first quarter of 2026, or 16,91 per cent in the same year. Underlying the gains and losses is the high impact of the river, the destruction of billions of brand names, the soaring cost of sales and the eventual erosion of profits。
The loss of kang-yeon's car is not a short-term accident, but a long-term downside. As an old car company, jiangye has long relied on medium- and low-end fuel and commercial vehicles, with low technical barriers, low profits and weak market competitiveness. New energy cars have risen in recent years, the market for fuel trucks has continued to shrink, the volume of conventional fuel suv sales dropped by 42. 01 per cent in the first quarter of 2026, and commercial vehicles have faced intense price wars and profit space has been shrinking. At the same time, the losses were further exacerbated by inefficient corporate management, poor cost control and a sharp increase in financial costs, which increased from $212 million in the same period last year to close to $100 million in the first quarter of 2026。
And it's the turn-off bet of jiang yee, and the core of the pay-off. In 2025, jiang wei and china collaborated in the launch of a high-end luxurious brand of honour, leading the million-class luxury market, with the first car-size top s800 priced at 70. 8-10. 18 million yuan, against top-class luxurious brands such as bill rolls, bingley, benz meerbah. In an effort to raise awareness and seize high-end markets, jiangye has been frenzied to sell, build channels and promote. Sales costs increased from 14. 67 billion yuan to 2,897 million yuan in 2025, an increase of 97. 50 per cent over the same year; sales costs increased by 129. 71 per cent in the first quarter of 2026, with $743 million spent in one quarter alone, mainly on advertising, channel commissions and market activities。
It is true that you have brought a growth in revenue to jiang yee, who in 2025 contributed $10. 7 billion and accounted for the bulk of the revenue in the country. High-end brands, however, have a large front-loading, long-term cycle and are not profitable in the short term. The market for million-grade luxury cars is extremely small, with an annual sales volume of only thousands, an overpriced s800, a limited audience and far below expectations, and the profits of bicycles are difficult to cover large marketing, research and development, and channel costs. What is even more embarrassing is that the high level of investment of the elite, not only is it not profitable, it dilutes the overall profits of the company, slows down its performance and creates a vicious circle of “more sold, more lost”。
The plight of jiangye is also a microcosm of the transformation of many traditional cars. In recent years, traditional fuel vehicle markets have shrunk and profits have declined, and more and more firms have hit new high-end energy markets in an attempt to move away from low-end internal rolls and increase profit margins. High-end branding, however, is by no means an easy task, requiring long-term technological accumulation, brand sank, channel building, user branding, short-term money-smuggling in exchange for short-term exposure and continued sales and profits. A lot of cars, like jiang yee, are in a state of pre-crazy, unsustainable, and end up in the mud, "no gain, no gain, no gain."。
Even worse, the blood-making capacity of jiang yi is at risk of being depleted. The deduction of non-net profits was negative for nine consecutive years, implying long-term losses in the main operation, which was barely sustained by government subsidies and investment returns. In the first quarter of 2026, companies confirmed the joint venture's investment gain of $199. 8 million, further exacerbating the loss. In the short term, the transformational investment of the elite, which does not see the promise of profit, needs to be sustained, and once the financial chain breaks, the company as a whole will be at great risk。
However, jiangye is not without any chance of turning the page. As china’s + gang’s strong and united high-end brand, with its technological empowerment, its manufacturing power, its production power, it does have a niche in the million-class luxury market. At the same time, jiangye is scaling down low-end operations, focusing on new energy sources, optimizing cost structures, reducing inefficient inputs, and concentrating funds on core operations such as high-end and new energy commercial vehicles. If the subsequent upswing in sales is steady, high-end brand names are gradually built and cost controls are effective, jiangye may be able to get out of the loss gap and achieve a reverse windfall。
But the reality is cruel, with intense markets at the high end, shrinking fuel trucks and financial pressures, and the road to transformation of the river is bound to be full of thorns. Six consecutive quarters of losses, 1. 7 billion a year, and 10 billion bets on the high world。
In the future, will the kang-yeon car be able to turn its back on the high ground and escape the fate of successive losses? Or will it continue to sink and be eliminated from the market? Time will give the answer. Don't you know you're in front of the screen
