Changan Auto profitability improved in first-half

Beijing (Gasgoo) – Changan Automobile had a lucrative first half of this year thanks to a 70% increase in revenue year on year. Sales saw an increase of 44%, over 1.2 million vehicles sold in H1, Changan Auto said in its semi-annual financial report.

Changan Auto lineup; photo credit: Changan Auto

Changan Auto posted revenue of RMB56.785 billion, a 73.22% jump from the earlier year. Net profit attributed to shareholders saw a decline of 33.55% year on year to RMB1.729 billion. Net profit after non-recurring gains and losses surged, compared to a RMB2.617 billion shortfall a year earlier, to RMB740 million. Net cash flow from operating investments soared 156.04% year on year to RMB17.699 billion in the reporting period.

The decline in net profit attributed to shareholders was mainly caused by the non-recurring gains shrinkage. Compared to the same period of last year, the non-recurring gains were down 4.2 billion to only RMB990 million in this reporting period.

Net profit after non-recurring gains or losses spiked because of Changan Auto’s successful business operation strategies. Changan boosted its sales, optimized its product structure, and improved the profitability of its independent and joint venture operations.

In the reporting period, Changan Auto saw a 44.5% year-on-year increase in sales, to 1.201 million vehicles, while its market share raised 1.2%. The group’s Chinese passenger vehicle brands delivered 660 thousand cars, a 68.3% increase year on year.

On August 23rd, Changan Auto announced its development strategy, “New Cars, New Ecosystem,” planning to sell 3 million vehicles in 2025, 35% of which will be NEVs.

Changan Auto announced that its high-end subsidiary auto brand Avatar is currently seeking for listing. The company plans to use its assets appraisal report as a pricing basis, bringing in 2 to 5 investors through a public listing. The company said the capital increases this time will be private, and the pricing will be consistent with outside investors.