Jiangling Motors boasts 198.65% year-on-year surge in Q3 net profit

Shanghai (Gasgoo)- Jiangling Motors Corporation Ltd. (JMC) reported a 198.65% year-on-year surge in the third-quarter (Q3) net profit attributable to the company's equity holders, while the profit for the first three quarters was still less than that of a year ago.

According to the quarterly report released on October 23, JMC gained a net profit amounting to RMB98.811 million in period from July to September, which made its Jan.-Sept. profit aggregate RMB157.673 million, a decrease of 27.93% over the previous year.

In the meantime, JMC's Q3 revenue jumped 13.28% to RMB6,686.321 million. Cumulative revenue of the year reached RMB20,408.275 million, edging up 1.08% from a year ago.

JMC sold 202,201 vehicles through September, down by 0.89% compared with the same period last year, including 67,371 trucks, 40,391 pickups, 38,697 SUVs and 50,971 light buses and 4,771 CKDs, said the automaker.

The company attributed its Jan.-Sept. net profit downturn to such factors as the worsening sales structure, the increasing discounts offered to survive the fierce market competition as well as the cost in new products and new technologies.

The increase in sale and management expenditures was also blamed for the profit decline. JMC stated that the sale expenditure for the first nine months soared 49.11% to RMB362 million mainly due to the launch of the Ford Territory, while management cost leapt 25.23% to RMB130 million, affected by rising money spent on staff and the right to use the trademark of the Territory.