Changan's net profit falls over 45% in first half of 2012

Gasgoo.com (Shanghai September 4) - Changan Automobile earned 570 million yuan ($90.03m) in net profits over the first six months of the year, Economic Observer News reported today. The figure represents negative year-on-year growth of 45.19 percent for the Chongqing-based manufacturer. Its business returns over the six month period totaled 14.04 billion yuan ($2.22b), 3.39 percent less than last year. The manufacturer's stock price was valued at 0.12 yuan ($0.0189) per share, equivalent to a year-on-year decrease of 45.45 percent.

In its performance review, Changan attributes the large drop in its net profit to falling sales, rising costs and decreases in profits from its joint ventures. Changan, along with its subsidiary companies, sold a total of 886,800 vehicles in the first half of the year, 6.32 percent less than last year. Microvan and own brand sedan sales respectively fell 8.85 percent and 8.48 percent from the first half of 2011 to the first half of this year.

Changan reported net profits of 1.36 billion yuan ($201.09m) and 1.04 billion yuan ($163.66m) in the first halves of 2010 and 2011, respectively.