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FAW cars released its third-quarter results, according to data, FAW cars achieved operating income of 6.591 billion yuan in the third quarter, an increase of 20.09 percent over the same period last year. The net profit loss belonging to shareholders of listed companies was 276 million yuan, down 609.65% from the same period last year. In the first three quarters of this year, the total operating income of FAW cars was 17.292 billion yuan, down 6.95% from the same period last year. The net profit belonging to shareholders of listed companies was a loss of 267 million yuan, down 297.33% from the same period last year. In addition, the financial report also disclosed the receipt of 39 million yuan in subsidies from the government.

It is worth noting that FAW cars still had a net profit of 96 million yuan in the first half of this year, while in the third quarter, FAW cars lost 270 million yuan.

In view of the reasons for the decline in performance, FAW car said that affected by the switching between country 5 and country 6, the grim automobile market and the decline in overall sales in the car market, the company's performance shrank significantly in the reporting period.

In addition, in the third quarter financial report, FAW car once again mentioned the restructuring of the company. FAW car said that as the matter still needs to be submitted to the general meeting of the company's shareholders for consideration and must be approved or approved by the relevant competent authorities, there is still great uncertainty.

It is understood that at the end of August this year, FAW issued a notice revealing the draft restructuring, taking the limited 100% stake in the car as an asset and replacing it with the equivalent part of FAW's 100% stake in FAW Jiefang. Among them, FAW Jiefang 100% equity is priced at 27.009 billion yuan, and the purchased assets are priced at 5.088 billion yuan, with a difference of 21.921 billion yuan, of which 19.921 billion yuan is paid by FAW cars in the form of 6.68 yuan per share, and the rest is paid in cash. At the same time, FAW cars will raise no more than 3.5 billion yuan at the same time.

At present, FAW car major asset restructuring has been approved by the SASAC of the State Council, and agreed in principle to the company's overall plan for asset restructuring and supporting financing. FAW car restructuring proposed to buy assets FAW Jiefang 100% equity, the transaction price of 27 billion yuan.

At present, FAW cars have two major passenger car brands, namely FAW Pentium and FAW Mazda. Sales figures show that FAW Mazda sold 63451 units in the first nine months of this year, while FAW Pentium sold 77994 vehicles, an increase of 26 per cent over the same period last year. In September, FAW Mazda sold 9517 vehicles and FAW Pentium 11599, up 75 per cent from the same period last year.

Since the beginning of this year, the sales volume of the domestic passenger car market has declined seriously, and the competition in the automobile market has continued to intensify, and FAW cars have also been greatly affected. However, judging from the performance of FAW sedan brands in recent months, sales have picked up, especially FAW Pentium, which sold 12309 new cars in October, up 177 per cent from a year earlier, according to the latest sales figures.

However, in the case of gradual growth in sales of its brands, FAW cars are still difficult to make a profit, especially the net profit fell sharply in the third quarter. For FAW cars, which are still dominated by passenger cars, how to get rid of the predicament and promote the growth of brand sales is the main task of the company.

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