Gasgoo.com (Shanghai July 17) - FAW Xiali, the once surging automaker, reported a deficit of 500 million CNY in the first half of the year, indication a third deficit financial year for the company with 480 million deficit and 1.259 billion deficit in 2013 and 2014.
The automaker also released its output and sales in the first half of the year of 39,600 and 373,00 units, approximately the same compared with those of last year.
In fact, FAW Xiali has always struggled in Chinese market through launching new SUV models. However, due to its old-fashioned existing models, it didn’t performed well in sales. Beside, a lack of new technology introduction for a long time resulted in that most portfolio are out of trend, with low competitiveness.
Shenzhen Stock Exchange has warned FAW Xiali that if it doesn’t make money for a third consecutive year in 2015, the company will be delisted. And now it is losing its last chance to survive in the listing market because it is very hard for the automaker to turn loss into gain in second half of the year, unless its owner FAW group will list entirely, which is of less possibility.
