AutoBeta(AutoBeta.net)12/18 Report--

Changan Automobile announced today that Chongqing Changan Automobile Co., Ltd. (hereinafter referred to as "the company") received 30 million yuan of special funds for industry and information technology from the Finance Treasury payment Center of Jiangbei District of Chongqing in 2019, encouraging 42.25 million yuan to be invested in R & D. a total of 72.25 million yuan.

On December 4, Chongqing Changan Automobile Co., Ltd. received 213221102 yuan from Chongqing Jiangbei District Employment and Talent Service Bureau.

In addition, on June 28 this year, Chongqing Changan Automobile Co., Ltd. received 350 million yuan in enterprise subsidies allocated by the Chongqing Municipal Finance Bureau, including 300 million yuan for product research and development and 50 million yuan for brand promotion.

In addition, Hefei Changan Automobile Co., Ltd., a wholly-owned subsidiary of Changan Automobile, has also received government subsidies for many times. On October 1st, Hefei Changan Automobile received 300 million yuan in subsidies for research and development of new models in Hefei High-tech Industrial Development Zone, and 120.682 million yuan in fixed assets investment subsidies, totaling about 421 million yuan.

Against the backdrop of repeated government subsidies for Changan Automobile and its wholly-owned subsidiaries, the auto company has suffered a decline in sales and performance losses.

According to sales data, Changan car sales in November were 176358, up 12.57% from a year earlier. Ting's cumulative sales from January to November were 1566255, down 18.71% from a year earlier. Among them, the cumulative sales of Chongqing Changan, Hebei Changan and Hefei Changan subsidiaries were 749984, down 13.4% from 866897 in the same period last year; Changan Ford's cumulative sales from January to November were 166078, down 53.9% from 359972 in the same period last year; and Changan Mazda's cumulative sales from January to November were 121010, down 21.8% from 154,762 in the same period last year.

Due to the decline in sales, Changan Automobile's profit situation is not optimistic. According to the financial report, in the third quarter of this year, the revenue of Changan Automobile was 15.24 billion yuan, an increase of 7.25 percent over the same period last year, and the net profit of shareholders belonging to listed companies lost 420 million yuan, an increase of 5.61 percent over the same period last year. In the first three quarters of this year, the cumulative revenue of Changan Automobile was 45.115 billion yuan, down 9.5 percent from the same period last year. The net profit of shareholders belonging to listed companies lost 2.66 billion yuan, down 328.83 percent.

Against the backdrop of declining sales and profit losses, Changan Motor plans to sell 50 per cent of its shares in Changan PSA and formally submit an application for listing at a price of 1.63 billion yuan on November 29th.

It is understood that Changan PSA Changan Automobile and PSA Group jointly invested 7.6 billion yuan to set up the company, each holding 50% of the shares. The company produces and sells PSA Group's high-end DS brand models in China, but due to the sluggish sales, Changan PSA has lost money year after year. Changan Automobile has to sell this encumbrance in the face of its own sales decline and profit loss.

It is understood that Changan Automobile has a total of four joint venture brands, namely, Changan Mazda, Changan Ford, Jiangling Holdings and DS brands, but judging from the development of these joint venture brands, life in the Chinese market is not smooth.

The performance of the independent brand of Changan Automobile is better than that of the joint venture brand, but due to the decline in sales volume, it has been unable to support the development of Changan Automobile; the sales of the joint venture brand Changan Mazda and Changan Ford also continue to decline, so it is difficult to achieve bright results; and the two parent companies have sold off because of the huge profit loss caused by the DS brand's long-term sales downturn. From all aspects, the current situation that Changan Automobile is facing is also very difficult.

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