AutoBeta(AutoBeta.net)10/18 Report--

According to the announcement, JAC Motor expects to achieve a net profit of 124 million yuan from January to September, an increase of 76 million yuan over the same period last year, an increase of 159% over the same period last year. The net profit belonging to shareholders of listed companies after deducting non-economic gains and losses was-80 million yuan, an increase of 746 million yuan over the same period last year.

JAC Motor said in its announcement that the main reason for the pre-increase in the first three quarters was that the company took the initiative to adjust its product structure and strictly strengthen cost control, so as to improve the profitability of its main business, resulting in a gross profit increase of about 78 million yuan. In addition, affected by the growth in the performance of the joint venture, the company's investment income increased by about 77 million yuan.

Compared with last year, JAC's performance in the first three quarters was indeed in a state of growth, and from the disclosure, the funds it received from government subsidies greatly reduced JAC's losses.

According to the compensation plan of the Hefei municipal government, Jianghuai Motor has received 211 million yuan in compensation funds due to the planning and construction requirements of Hefei Metro Line 5, the government has expropriated properties owned by JAC Motor, according to the compensation plan of the Hefei municipal government, Jianghuai Motors announced on September 18. After the deal, JAC expects its net profit to increase by about 200 million yuan in 2019, surpassing JAC's net profit level of 125 million in the first half of the year.

According to Jianghuai Motor's 2019 semi-annual report, the net profit attributed to shareholders of the parent company in the first half of the year was 125 million yuan, compared with 1.635 billion yuan in the same period in 2018, down 23.46 percent from the same period last year.

It is worth noting that the net profit of the shareholders of Jianghuai Automobile's parent company in the first half of the year was 125 million yuan, but in the third quarter, this figure decreased, which is expected to be related to the fine for Jianghuai Automobile emissions fraud.

In July this year, JAC issued a notice saying that JAC received a "decision on administrative penalty" issued by the Beijing Municipal Bureau of Ecological Environment, with a total fine of 170 million yuan, for fake emissions from its trucks. The compensation fund of 211 million yuan received as a result of subway construction requirements was not included in the financial report, largely because the two offset each other.

In recent years, the performance of Jianghuai Automobile continues to decline, and the situation is not optimistic. In 2017, JAC Motor achieved a net profit of 432 million yuan belonging to shareholders of listed companies, down 62.8% from the same period last year, while net profit loss of 786 million yuan was realized in 2018, down 282.0% from the same period last year.

According to KuaiBao, which released production and sales in September, Jianghuai Automobile sold 31697 vehicles in September, down 8.7% from a year earlier. The cumulative sales from January to September were 320816, down 11.27% from a year earlier. Among them, the sales of pure electric vehicles in September were 5116, down 24.17% from the same period last year. From January to September, the cumulative sales of pure electric vehicles were 49028, an increase of 29.82% over the same period last year.

In addition, in the third-quarter results announcement, JAC also mentioned that it received a subsidy of 463 million yuan from the government. according to statistics, from 2014 to 2018, JAC received a cumulative subsidy of 8.718 billion yuan, while its profit was only 2.225 billion yuan.

For Jianghuai Motors, it is not a way to rely on government subsidies all the time, because if they can not make a good profit, but rely on government subsidies to obtain profit growth, it is obvious that with the increasingly severe automobile market, it is very difficult for Jianghuai Automobile to have real development.

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