AutoBeta(AutoBeta.net)07/15 Report--

Changan Automobile, which made a net loss of 2.65 billion yuan last year, unexpectedly achieved "stopping losses" in such a way this year.

On July 15, Chongqing Changan Automobile Co., Ltd. issued a semi-annual performance forecast for 2020. Changan Automobile is expected to make a profit of 2 billion yuan to 3 billion yuan in the first half, compared with a loss of 2.24 billion yuan in the same period last year, according to the report.

In addition to the main automobile business, Changan Automobile made a total profit of 5.275 billion yuan on three non-recurring profit and loss items, thus helping the company to make a profit, including nearly 1.8 billion yuan earned by "stock speculation". Reflected from the side, only relying on the main automobile industry, Changan Automobile Group is still at a loss.

Changan Automobile said that the company's product structure improved and its profitability improved during the reporting period. At the same time, the total net profit contributed by the company's three non-recurring profit and loss projects during the reporting period is about 5.275 billion yuan: 1. Chongqing Changan New Energy Automotive Technology Co., Ltd., a wholly-owned subsidiary, introduced strategic investors and the company gave up the priority of capital increase. Increase the net profit belonging to the shareholders of the listed company by about 2.1 billion yuan; 2. The sale of shares in Changan Peugeot Citroen Motor Co., Ltd. increased the net profit belonging to the shareholders of the listed company about 1.4 billion yuan. 3. The share price of the Ningde era stock held by the company rose and the net profit attributed to the shareholders of the listed company was about 1.775 billion yuan.

Changan Automobile and Ningde Times signed the Strategic Cooperation Agreement in June 2016; in June 2017, Changan Automobile indirectly invested in Ningde era by acquiring the fund share of Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership).

Changan Automobile experienced a sluggish year in 2019. Through brand and product restructuring, sales have now recovered, and sales of joint ventures have also seen growth.

According to the report, Changan Automobile sold 194400 new cars in June, up 38.11 percent from the same period last year. In the first half of 2020, Changan Automobile sold a total of 831000 new cars, an increase of 1.3 percent over the same period last year.

Specifically, Changan Ford sold 22125 new cars in June, an increase of 37% over the same period last year. With the continuous launch of new products, Changan Ford ushered in a drop in sales. In the first half of the year, Changan Ford sold 97500 vehicles, up 30 per cent from a year earlier. At present, Ruiji has become the main sales model of Changan Ford, according to officials. Other new products, the first half of the new Mondeo, Ruiji two-wheel-drive version, domestic explorers on the market, the second half of the domestic Fox travel version is also expected to launch the market. Changan Ford products speed up the update and localization, and there are also slight adjustments in positioning, so the recovery of sales has been effective. The company has said it will launch at least 18 new models over the next three years.

Changan Mazda sold 12614 vehicles in June, up 30.7 per cent from a year earlier, while cumulative sales in the first half were 56041, down 8.4 per cent from a year earlier. With the launch of the domestic model CX-30, Changan Mazda is also expected to stop falling this year.

Sales of independent brands also increased, with sales of Changan independent brands reaching 420400 units in the first half of the year, up 6.64 per cent from a year earlier. Among the Changan brands, CS75 has become the main sales force.

Changan Automobile Group plans to achieve its annual sales target of 1.91 million vehicles in 2020 and has achieved 43.5 per cent of its target in the first half of the year. As the auto market returns to normal and grows, Changan Automobile is expected to meet its annual target.

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