AutoBeta(AutoBeta.net)10/07 Report--

Chang 'an Automobile, which continues to lose money, has received financial subsidies again. Chang 'an Automobile announced today that Hefei Chang' an Automobile Co., Ltd., a wholly-owned subsidiary, 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 subsidies for investment in fixed assets, totaling about 421 million yuan.

In addition, on June 28,2019, Hefei Chang 'an Automobile Co., Ltd. received a subsidy of RMB 300 million yuan for research and development of new models in Hefei High-tech Industrial Development Zone. Therefore, Hefei Changan Automobile Co., Ltd. alone received a financial subsidy of 720 million yuan. Hefei Chang 'an is one of the production bases of Chang' an brand passenger cars, mainly producing CS75PLUS, CS15 series, Yidong DT and other products.

In addition, Chang 'an Automobile also obtained a number of subsidy funds including Chongqing and Nanjing governments during the year, among which Chongqing City allocated 350 million yuan of enterprise subsidies in June.

Chang 'an Automobile, which has repeatedly received government fund subsidies, is behind the decline in sales volume and performance losses.

Chang 'an Automobile lost 654 million yuan in 2018 due to continuous decline in sales volume and poor management of joint venture brands. According to the performance report for the first half of 2019, Chang 'an Automobile lost 2.24 billion yuan, down 239.17% year-on-year.

The semi-annual performance report also revealed that Chang 'an Holding Co., Ltd. only Chang' an Mazda realized profit, and the rest were operating at a loss. Among them, Chang 'an Mazda made a profit of 873 million yuan in the first half of the year, Chang' an Ford lost 777 million yuan, Jiangling Holdings lost 473 million yuan, while Chang 'an Suzuki, 100% controlled by Chongqing Chang' an, lost 246 million yuan.

Chang 'an Automobile's independent brand is weak in profit, and the joint venture brand, as the profit cow of automobile enterprises, suffers losses, resulting in serious overall losses of Chang' an Automobile, mainly due to the decline in sales volume.

According to the latest announcement, the overall sales volume of Chang 'an Automobile reached 1.066 million vehicles in the first eight months, down 25.5% year-on-year. Among them, Chongqing Chang 'an, Hebei Chang' an and Hefei Chang 'an subsidiaries of Chang' an independent brand sold 505,000 vehicles in the first 8 months, down 21% year-on-year; Chang 'an Ford sold 108001 vehicles, down 60.8% year-on-year; Chang' an Mazda sold 83016 vehicles, down 26.5% year-on-year.

Chang 'an Independence is a brand that Chang' an Automobile has made great efforts to build in recent years. Unfortunately, after a million peaks, sales have declined successively. In addition to Chang 'an Ford, Chang' an Mazda joint venture brand downturn, Japan Suzuki has already withdrawn from Chang 'an Suzuki, Chang' an Peugeot Citroen sales are even worse. Chang 'an automobile overall sales decline, weak profits appear losses, has reached a very difficult point.

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