AutoBeta(AutoBeta.net)08/30 Report--

Today, FAW Xiali officially released its 2019 half-year report, which showed that in the first half of this year, FAW Xiali achieved revenue of 268 million yuan, down 62.45% from the same period last year, and a net profit loss of 551 million yuan, compared with a loss of 637 million yuan in the same period last year.

Affected by the continuous downturn of the automobile market, the tightening of national emission standards and the weakening of the company's products, differences in positioning and configuration, weakening of sales channels and other factors, the company's sales volume continues to decline.

According to statistics, in the first half of this year, FAW Xiali produced a total of 1126 Weizhi and Junpai cars, down 93.34% from the same period last year, and sales of 3929 cars, down 69.86% from the same period last year.

Since July 1 this year, Beijing, Shanghai, Tianjin, Guangzhou, Shenzhen and other places have successively decided to implement the national six emission standards ahead of schedule, while FAW Xiali currently has no products that meet the national sixth emission standards, and there will be no products up to the standard to be sold in the areas where the sixth national emission standards are implemented.

FAW Xiali has taken active measures to develop new products and upgrade products. In 2014, the company launched Junpai D60, which has greatly improved product quality and brand image. In August 2016, the company newly developed Junpai A70 to further improve the company's product structure, and at the same time, develop and produce SUV, hatchback cars, electric cars and other new models, so as to improve the competitiveness of products. In the second half of the year, the company will continue to speed up the adjustment of marketing system and capacity improvement around the innovation of marketing mode; strengthen the project management system to promote the continuous improvement of commodity power; speed up improvement and strive to improve the ability of quality system; continue to promote the work of improving quality and efficiency, and realize the overall improvement of enterprise management ability.

In addition, in the semi-annual report, FAW Xiali also revealed the progress of its cooperation with Boxun Automobile, saying that the audit and evaluation work had been basically completed, and that it was focusing on the related work set up with the Boxun Automobile Joint Venture Company, fulfilling the decision-making process and information disclosure obligations, and combining with the future product planning of the joint venture company, quickly reduce product inventory, achieve a smooth transition and reduce losses.

In order to meet the company's capital turnover and reduce financing costs, FAW Xiali intends to apply for an entrusted loan of no more than 2.8 billion yuan from FAW Group. As of June 30, 2019, FAW Xiali has obtained an entrusted loan of 1.1 billion yuan from FAW shares. The loan interest is calculated according to the deposit and loan interest rate of financial institutions set by the people's Bank of China, and the current interest expenditure is 25.5563 million yuan.

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