An Overlooked Signal Hidden in Chery Automobile's Q3 Report

On October 30, 2026, Chery Automobile Co., Ltd. (9973.HK, referred to as "Chery Automobile" or "the Company") released a performance report that defied the trend: according to unaudited financial data for the nine months ended September 30, 2026, the Company achieved revenue of 241.234 billion yuan in the first three quarters, a year-on-year increase of 12.29%; gross profit of 39.004 billion yuan, a year-on-year increase of 32.38%, gross profit margin increased to 16.17%; R&D expenditure of 11.046 billion yuan, a year-on-year increase of 40.21%; profit for the period of 14.595 billion yuan, net profit margin 6.05%; profit attributable to owners of the Company 13.963 billion yuan.

During the same period, according to data released by the National Bureau of Statistics of China, revenue in the automobile manufacturing industry increased by 2.6% year-on-year; total profit decreased by 22.8% year-on-year; operating profit margin was 3.3%. Chery Automobile's revenue growth rate and profitability are significantly higher than the industry level; moreover, the gross profit growth rate of 32.38% and revenue growth rate of 12.29% are both higher than the sales volume growth rate of 10.5%, demonstrating high-quality growth resilience.

Systematic deep cultivation in the global market, large-scale realization of new energy products, and continuous increase in R&D investment jointly constitute the three main lines of Chery Automobile's high-quality growth. What runs through them is the comprehensive deepening and landing of the Globalization 3.0 strategy.

This year, Chery accelerated the implementation of the Globalization 3.0 strategy. From the executive team to the organizational system, adjustments and upgrades were carried out, promoting integrated coordination between domestic and foreign markets and truly localized R&D, manufacturing, procurement, sales, and services. The Company moved from product exporting to ecosystem exporting and system exporting, transforming from a "Chinese company doing global business" to an "enterprise citizen with global operations, decentralized, and integrated into local regions."

In the first three quarters, the Company commissioned its first overseas regional operation center in Barcelona, Spain, and simultaneously launched the Spanish Research Institute, moving decision-making rights for R&D, manufacturing, supply chain, compliance, public affairs, etc., to the European local level. In South Africa, the Company acquired the Roslyn plant from a global major automaker and launched a localization plan, striving to achieve an initial target of 40% localization rate for vehicle production in South Africa before 2028. Chery's globalization is no longer just about selling cars overseas, but about growing the organization overseas, building capabilities locally, and keeping contributions locally.

Picture shows the scene of the commissioning ceremony of Chery South Africa Roslyn Plant

According to data statistics from market research institute Dataforce, Chery Automobile's sales volume in Europe (covering EU, UK, and EFTA markets) ranked first among Chinese brands in September. In the same month, according to statistics from the UK automotive manufacturers and traders association (SMMT), Chery ranked first in new car brand sales for the second consecutive month in the UK, again surpassing Volkswagen, and its JAECOO 7 topped the UK full-model sales list again. Now, for every 10 new cars sold in the UK, 1 comes from Chery.

According to statistics from the China Passenger Car Association (CPCA), Chery Automobile's new energy monthly wholesale volume has ranked in the top three of the industry for 6 consecutive months. From China to the globe, Chery New Energy is powering up simultaneously on multiple categories and price points.

The sales data for the first three quarters released by Chery Automobile previously showed: the all-new QQ3 has exceeded 10,000 units in sales for six consecutive months, with currently 100,000 units of global orders pending delivery; Fengyun A9 won the sales champion in the 150,000-yuan pure electric mid-size car segment, delivered over 7,000 units in September, and monthly orders exceeded 20,000 units; Fengyun T7 delivered 6,168 units in September, with pending orders exceeding 16,000 units; iCAR V23 maintains leadership in the new energy box-style sub-market, with cumulative global sales exceeding 100,000 units; LUXEED V9 has ranked first in the MPV market over 400,000 yuan for 4 consecutive months since its launch, and welcomed the 30,000th delivery in October; Freeland 8 has completed the first batch of deliveries in September and entered the scale delivery phase.

Picture shows some Chery new energy models

On a global scale, Chery Automobile is accelerating the export of new energy and intelligent products. The high-end brand focusing on new energy and intelligence, OMODA & JAECOO, has entered 79 global markets. JAECOO 7, JAECOO 5, and OMODA 5 entered the UK top 10 best-selling cars list. iCAR V23 ranks first in the sub-market of Thailand, Malaysia, Nepal, South Africa, and other countries. Zhongheng G700 has exceeded 30,000 units in global sales 11 months after launch, ranking first among Chinese luxury SUVs in 8 countries including Saudi Arabia, UAE, Mexico, etc. LEPAS has launched and delivered new energy models in countries such as UK, Italy, Thailand, Indonesia, South Africa, and simultaneously launched pre-warm or pre-sale in Europe, Australia, Middle East, etc. Currently, for every 7 new energy vehicles exported from China, 1 comes from Chery.

Picture shows Chery overseas family users participating in the new car global premiere event

R&D expenditure is a key cut to observe Chery's growth logic. In recent years, Chery has continuously increased investment in electrification and intelligence. In the first three quarters, the Company's R&D expenditure was 11.046 billion yuan, a year-on-year increase of 40.21%, the growth rate is about 3.3 times the revenue growth rate; the proportion of R&D expenditure to revenue rose from 3.67% year-on-year to 4.58%. Exchanging today's investment for tomorrow's technology leadership is the hardest investment behind Globalization 3.0.

Chery Automobile is comprehensively transforming into an AI-driven global technology ecosystem company. On October 20, Chery released the "Rayong 2035" strategy. Taking the physical AI vertical foundation large model CheryMind as the technology infrastructure, it launched V2G + Swift Charging + Wireless Charging, Rhino S Solid-state Battery, Ziwei Chip, Robotaxi, Lingxiao eVTOL, Native 48V Low-voltage Electrical System, MoJia Robot and other core technologies, assisting travel, energy, food, life and other freedom scenarios. Chery uses AI for gene restructuring, dedicated to creating a "paradise for global adventurers, a paradise for entrepreneurs, a holy land where new technologies constantly emerge."

Chery Swift Charging achieves charging "charge for 5 minutes, range increases by 500 kilometers", compressing waiting time to the time it takes to drink a cup of coffee. The industry's first commercialized AC V2G technology, connects vehicles to the grid, charge during valley hours and sell during peak hours, helping users earn money and generate revenue, and can also realize emergency external power supply, solving overseas power grid outage problems, making every vehicle a mobile, distributed, truly green energy carrier, creating truly new energy vehicles; the first batch of "Vehicle-Grid Interaction Program" V2G sites cover Shanghai, Guangzhou, Hefei, Wuhu, and other places.

Picture shows Chery Automobile Swift Charging Demonstration Station

Picture shows overseas guests watching Chery Flying Fish Intelligent Driving Unit technology display

Picture shows overseas guests interacting with MoJia Robot during 2026 Chery Global User Ecosystem Conference

Globalization 3.0 Value Continues to Rise: High Recognition of Domestic and Foreign Securities Firm Ratings

Public research reports from various institutions show that this year, JPMorgan, Citi, Deutsche Bank, CICC, CITIC Securities, CSC Financial, Huatai Securities, Guotai Haitong, Zhongtai Securities, Dongwu Securities, and other domestic and foreign securities firms covering Chery Automobile, have shown highly consistent consensus in rating direction: Buy or Outperform Industry, and core logic points to the same set of judgments—Globalization system capabilities and improvement of new energy economic benefits.

All institutions have given Chery Automobile an "Overweight" rating, unanimously agreeing: Chery's overseas business has completed the transition from product exports to local operations, forming a first-mover advantage and scale profitability platform; the economic benefits of the new energy business are in a continuous improvement channel.

The consensus on the rating direction of domestic and foreign securities firms provides the market with a comparable external coordinate: a structural growth narrative anchored by globalization system capabilities and improvement of new energy economic benefits has formed a considerable consensus at the investment institution level.

From "Going Out" to "Going In", from selling products to building systems, Chery Automobile's Globalization 3.0 is pushing the Company to a new position: a global technology ecosystem company driven by AI, operating locally globally, and defining growth through technological innovation.