Since 2014 profit reduced rapidly due to less demand of car，JAC group focus on truck and SUV models for growth

Gasgoo.com (Shanghai Mar 31)– Recently, JAC Auto has released the performance report of 2014, showing the net margin was 529,000,000 Yuan, decreasing by 42.36% on year-on-year basis and the benefit per share was 0.41 Yuan. The total sales volume of truck, truck chassis, van, MPV, SUV and saloon car declined by 10% due to less demand of saloon car and truck according to the announcement of JAC auto.

The report also shows the sales volume of JAC automobile and chassis last year was 446,800, declining by 9.87% and the total operation revenue was 34.195 billion Yuan; The total profit was 0.571 billion Yuan and net margin belongs to shareholders was 0.529 billion Yuan in 2014, declining by 44.81% and 42.36% on year-on-year basis.

JAC auto cut down the production of saloon car last year, avoiding the direct competition with global auto brands and increased the output of MPV and SUV, aiming to take full advantage of active demand of these market segments. So, the sales volume of MPV increased by 31% to 71,267 and the data of SUV almost doubled to 71,487. But the sales volume of saloon car declined by 54% to 52,816.

What's remarkable is the sales volume of JAC truck, which is the main business, declined by 15% to 219,385 due to the sales price increasing by average 20,000 caused by Euro IV.

According the latest report of JAC Auto in Mar. 5th, the sales volume of JAC SUV was over 40,000 in first 2 months, increasing by 364% on year-on-year basis and the data of MPV increased by 17.8%. The total sales volume of JAC automobile and chassis increased by 4.7% during the past 2 months although the sales volume of MPV, saloon car, truck and chassis declined on year-on-year basis. JAC Auto plans to invest more on research and development to keep competitive and the gross profit rate declined due to cost increased and sales promotion in 2014. Industry analysts figure JAC SUV models might be the growth point this year.