Chongqing-based Changan once again receives financial support from government

Gasgoo.com (Shanghai August 30) - Last evening, Changan Automobile announced that it had received over 100 million ($15.78m) in financial support from the government of Chongqing, Caijing reported today.

The majority of the funding, 94.3 million yuan ($14.88m), came from the managerial committee of the Chongqing Liangjiang New Area. The remaining 5.72 million yuan ($903,180) came directly from the Chongqing Finance Bureau's purse. The manufacturer has already received both sums of money, which have been earmarked to aid the manufacturer's development. The funds will be calculated in the manufacturer's balance sheets for this quarter.

The 100 million plus yuan should have a noticeable effect for Changan, whose net profits have steadily been slipping. According to a recently released performance review, the manufacturer's net profit in the first half of the year totaled just 570 million yuan ($90.01m), a full 45.19 percent less than last year.

Furthermore, this is not the first time Changan has received financial support from the government this year. Earlier in May, the Chongqing government decided to renew subsidies for rural buyers, personally paying up to six percent of the price tag on locally-manufactured light vehicles, up to a maximum of 3,000 yuan ($470) per vehicle. Being the largest automobile enterprise in Chongqing, Changan was the prime beneficiary of this campaign.

Changan's stock price finished at 4.76 yuan ($0.7516) per share yesterday, falling 0.21 percent.