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Recently, Changan Automobile released its 2021 results. According to the report, Changan Automobile achieved an operating income of 105.142 billion yuan in 2021, an increase of 24.33 percent over the same period last year. The net profit of returning to the mother was 3.552 billion yuan, an increase of 6.87% over the same period last year. The non-net profit of returning to the mother was 1.653 billion yuan, an increase of 150.85% over the same period last year. From the financial results, the performance of Changan Automobile in 2021 is still very strong, not only the operating income reached the level of 100 billion yuan for the first time, but also put an end to the negative deduction of non-net profit in previous years, which means that Changan Automobile can finally make money by selling cars.

According to the financial report of the automobile industry, it was found that Changan Automobile's non-recurrent profit and loss reached 6.574 billion yuan in 2020, which directly pulled the company from loss to profit. Changan Automobile achieved a net profit of 3.324 billion yuan that year, but deducted non-net profit of 3.25 billion yuan. By contrast, in 2021, Changan Automobile came from non-recurrent profit and loss of 1.899 billion yuan, deducting non-net profit of 1.653 billion yuan, that is, Changan Automobile can make a profit through its main business. Previously, Changan Automobile deducted non-net profit from 2018 to 2020 lost 3.165 billion yuan, 4.762 billion yuan and 3.25 billion yuan respectively, with a total loss of 11.18 billion yuan over three years.

Changan Automobile said that the growth of both revenue and profit was mainly due to the increase in the volume of sales in the company's independent sector. Data show that Changan sold 2.301 million vehicles in 2021, an increase of 14.8 percent over the same period last year, of which Changan sold 1.755 million Chinese-branded cars, up 16.7 percent from the same period last year. However, although the independent brand sales volume is large, but under the profit level, more rely on the joint venture brand Changan Ford.

According to the financial report, Changan Ford's sales rose 20.9 percent to 305000 vehicles in 2021 compared with the same period last year, with an annual operating income of 61.765 billion yuan and an annual net profit of 2.284 billion yuan. For Changan Ford, the localization of the Lincoln brand has become a lifesaver, with the Changan Lincoln brand doubling its annual sales of 89000 vehicles over the past year. Although sales are still a far cry from their peak, the addition of luxury models with higher bicycle revenues has led to a big profit boost for Changan Ford in 2021. In this regard, Changan Automobile said that Changan Ford achieved a significant increase in profits, mainly due to the improvement of product structure, increased sales, and material cost reduction and other reasons.

However, Changan Automobile makes a profit by selling cars, but the industry is also investing more and more, such as in new energy vehicles. According to the plan, Changan Automobile plans to achieve total sales of 4 million vehicles by 2025, of which 3 million are owned by Changan brands, including 1.05 million new energy sales, accounting for 35 per cent. By 2030, Changan automobile sales will reach 5.5 million, of which Changan is an independent brand 4.5 million, including new energy sales of 2.7 million. Accounted for 60%.

According to the layout of Changan, in the future, Changan Automobile will cover the low, middle and high-end market in new energy vehicles, of which the main high-end market is the Avita brand, which is jointly built by Changan, Ningde Times and Huawei, of which Avita 11 is the first model, positioning medium-sized pure electric SUV. The brand that focuses on the middle and high end of the market is the Deep Blue Brand, which was launched on April 21, led by Changan Automobile and operated by Changan New Energy. The first model, the Changan C385, which is based on the EPA1 platform, will provide pure electricity, extended range and hydrogen fuel cell power. Changan Deep Blue brand will target the 15-300000 yuan medium-to-high-end pure electric vehicle market. In addition, it is reported that Changan Automobile will launch a new brand at the low end of the market, that is, Changan LUMIN, which just released the official picture not long ago, the first model is waxy corn, and the new car is based on the Changan EPA0 platform and is positioned as an all-electric minicar.

According to the Federation of passengers, the retail volume of Changan new energy for the whole year of 2021 was 76466 vehicles, and the cumulative retail volume in the first quarter of 2022 was 30645 vehicles. Although Changan's new energy sales have skyrocketed, there is a big gap with other domestic new energy brands. Ulai, ideal and Xiaopeng all sold nearly 100000 new energy vehicles in 2021, while Changan plans to sell 1.05 million new energy vehicles by 2025, which means it will leap from 100000 to 1 million in four years.

According to the annual report, Changan Automobile will carry out electrification and platform construction for all products. For example, Changan New Energy will rely on EPA architecture to build entry-level and mid-range products, while Avita's CHN platform will be jointly built by Changan, Huawei and Ningde era. At the same time, Changan Automobile will optimize the strategy and positioning of Changan UNI, Changan passenger cars, Auchan and Kacheng brands, and will make a comprehensive transformation to electrification and electrification in the future.

Changan Automobile is still very ambitious. After all, the company has made a five-or ten-year plan for itself, but under the background of increasingly fierce competition for new energy vehicles in China, it is also worth looking forward to whether Changan New Energy can stand out. In fact, in the period of technological change in the automotive industry, increasing R & D investment has become a consensus in the industry, and with hindsight, will Changan Automobile be able to achieve its goal?

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