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FAW cars issued the latest performance forecast, which shows that FAW cars are expected to have a net loss of 236 million yuan to 296 million yuan in the first three quarters of this year, compared with a profit of 135 million yuan in the same period last year. Of this total, the loss in the third quarter is expected to be 246 million yuan to 306 million yuan, compared with a profit of 54.208 million yuan in the same period last year.

The company said that the profit and loss was mainly due to the decline in sales caused by the domestic passenger car market, as well as the switch between the fifth and sixth grade, which reduced the company's vehicle sales.

However, according to the latest statistics of the Federation of passengers, in September, when the national passenger car market fell 6.5% from the same period last year, FAW led the top 20 car companies in monthly sales with a growth rate of 35.2%, and entered the top 20 list for the first time.

Among them, the sales of the Pentium brand of FAW car reached 9722 in September, an increase of 59.1%. The Pentium T77 almost accounted for the total sales of other Pentium models. From January to August this year, the cumulative sales of Pentium brand increased by 20% compared with the same period last year, which can be said to be an excellent performance.

FAW Mazda, another brand, did not perform so well, with sales reaching 9517 in September, up 16.8% from a year earlier and 23.3% from August. Although both models of the brand performed well in September, the newly replaced Atez sold more than 4,000 and the sedan SUV CX-4 sold 5425, rising sharply for two months in a row. But for Mazda, it is only a reversal this month, and it is still not so optimistic about Mazda, whose sales have been declining for a long time.

In addition, the company also said that it recently received a subsidy of 100 million yuan from Changchun Automobile Economic and technological Development Zone, which is specially used for FAW Pentium brand research and development and independent innovation projects. The government subsidy, which is related to the company's daily business activities, has been allocated to China FAW, the controlling shareholder, and will be allocated to the company by FAW. FAW car said that the government subsidy received this time is expected to increase the company's total profit in 2019 by 100 million yuan.

Prior to this, FAW car Co., Ltd. said that the major asset restructuring has been approved by the State Council SASAC, and agreed in principle to the company's overall plan for asset restructuring and supporting financing. It means that FAW Jiefang, a high-quality asset of FAW, will be transferred to FAW cars, which will improve the profit situation of FAW cars, and the profitability of FAW cars will be greatly enhanced. FAW cars will no longer undertake the task of producing and selling passenger cars.

With the inclusion of FAW shares in FAW liberation, it will not only achieve the optimal allocation of resources, but also boost the current poor performance of FAW cars.

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