Shanghai (Gasgoo)- Anhui Ankai Automobile Co., Ltd., a subsidiary to Anhui Jianghuai Automobile Co., Ltd. (JAC Group), saw net profit attributable to the listed company's shareholders in the first three quarters surge 152.31% year on year up to RMB135 million ($19.2 million). The Q1-Q3 operating revenue climbed 26.31% from the year-ago period to RMB2.58 billion ($367 million).
The bus manufacturing company, listed at Shenzhen Stock Exchange in 1997, saw its losses for two consecutive years in 2017 and 2018. After Ankai disclosed the 2018 annual report, it received a delisting warning and had been labeled as *ST. ST stands for “Special Treatment”, used to mark the stocks of those companies which are confronted with financial troubles or other unusual difficulties while *ST indicates the company are facing much more difficult situation. It remains to be seen whether Ankai can remove the label in its crucial year 2019.
(Photo source: Ankai)
Its performance forecast released earlier explained three reasons for the growth. In 2019, the automaker’s profitability has improved from a year ago as the company strives to explore more market shares at home and abroad, and thus boosts bulk orders. Besides, it has made efforts to optimize production capacity and integrate resources to cut down fixed costs. Another major factor contributing to the revenue hike represented the Q3 investment income that leapt 798.92% year on year, after transferring all equity of its subsidiary Jianghuai Hongyun Bus Co., Ltd.
In addition, the government subsidies that affect profits and losses jumped 245% year on year to around RMB51, 062,741 ($7,254,279) in the third quarter, according to the quarterly report.
