Changan Automobile gains 40% surge in net income in H1 in China

Gasgoo.com (Shanghai September 1) - Chongqing Changan Automobile managed to achieve a 40 percent surge in net income in the first half of the year, enjoying the fastest sales growth rate among China’s domestic four biggest automakers in the same period. It is satisfactory that the company realized profit surge under the downward pressure in China's auto market, as well as the acute economic slowdown, fiercer market competition and other challenges.

The company reported the first half revenue of 33.053 billion yuan and net profit assigned to shareholders of listed companies of 5.085 billion yuan, up 36.54% and 40.16% respectively compared with the same period of last year. In specific, basic earnings per share reached 1.09 yuan, an increase of 39.74% on a year-on-year basis.

For the first half of the year, the sales of Changan Automobile and subsidiary joint-ventures and associated enterprises totaled 1.466 million units, an increase of 11% on a year-on-yer basis. The sales growth rate exceeded by 9.6 percentage points than that of the overall industry in the same period. Particularly, passenger vehicles of pure Changan brand (including new mini van but no joint-venture products) sold 549,000 units, surging 40% form a year earlier. The sales volume ranked first among China’s domestic brand passenger vehicles of narrow sense.

Changan Automobile has achieved market share of about 12.4%, up 1.1 percentage points over the previous year in China. The automaker’s sales has exceeded that of FAW in the first half to rank third among China’s domestic automakers following the SAIC and Dongfeng Motor.

Among the four major automobile groups, only SAIC kept a balance with the same period of last year in sales in the first half, while FAW Group and Dongfeng Automobile reported sales fell. Yet, Changan achieved the fastest growth rate of 11% among the major four.

Driven by big sell of CS75, CS35 and Eado, the company stepped out of the shadow of fully depended on foreign partners, making a profit instead of suffering a loss for the first time. According to the company’s fiscal report, the marketing revenue growth was mainly contributed by the enlarged scale of production and marketing. Net profit assigned to shareholders of listed companies was owing to venture investment income expansion.