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Changan Automobile announced today that it received a total of 650 million yuan in financial subsidies. According to the announcement, Changan Automobile recently 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. Hefei Changan, a subsidiary, received 300 million yuan in subsidies for new car research and development.

Through the statistics of the past six months, Changan Automobile has received a number of subsidies and awards, with a total of 1.45 billion yuan. However, in the first quarter of this year alone, Changan Automobile lost 2.1 billion yuan.

The government subsidies and incentives in the announcement will be included in the current profit and loss, so it can further improve the financial performance report of Changan Automobile.

In addition to the above subsidy of 650 million yuan, Changan Automobile also received R & D awards from the governments of Chongqing and Nanjing at the end of 2018 and the beginning of 2019, respectively, totaling 1.45 billion yuan. According to the announcement, Changan Automobile won 600 million yuan in research and development of new energy products from the Chongqing Municipal Government and 200 million yuan from the Nanjing Municipal Government for new energy vehicles.

Changan Motor is in deep trouble because of the continued decline in sales and a sharp decline in the revenue of the joint venture.

In 2018, the total operating income of Changan Automobile was 66.3 billion yuan, down 17.14% from the same period last year, the operating profit was a loss of 228 million yuan, and the total net profit belonging to shareholders was 654 million yuan, down 90.8% from the same period last year.

In the first quarter of 2019, Changan Automobile achieved revenue of 16.008 billion yuan, down 20% from the same period last year, with a net profit loss of 2.096 billion yuan, compared with a profit of 1.392 billion yuan in the same period last year.

Changan Automobile has repeatedly said that the sharp decline in performance is related to the weak market and reduced investment income of its joint venture brands. The decline in sales is related to negative growth in the auto industry as a whole.

The company's largest joint venture is Changan Ford, which contributed nearly 80% of Changan's profits in 2017. However, Changan Ford's sales fell sharply in 2018, with annual sales falling to 377800 vehicles, down 54.38% from a year earlier, and a net loss of 803 million yuan, turning from profit to loss for the first time.

Changan Ford was fined 163 million yuan by the State Administration of Market Supervision and Administration in early June. According to the penalty notice, Changan Ford set a minimum resale price for downstream dealers during the auto show by formulating a "price list", signing a "price self-discipline agreement" and limiting downstream dealers' lowest prices and network lowest quotations during the auto show, depriving downstream dealers of their pricing autonomy, harming fair competition in relevant markets and the legitimate interests of consumers, and fined 162.8 million yuan.

The latest figures show that Changan Automobile sold 113000 vehicles in May, down 34.7% from the same period last year. The cumulative sales from January to May were 684000, down 32.9% from the same period last year. Among them, Changan Mazda sold 9522 vehicles in May, down 39.8% from the same period last year, down 51500 from January to May, down 34.1% from the same period last year. Changan Ford's May sales were only 7418, down 75.6% from January to May, down 70.3% from a year earlier.

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