Qoros Annual Report shows 2.5 Billion Loss and 6 Billion Liability

Gasgoo (Shanghai, April 11) —As of December 31^st, 2015, Qoros Automotive Co., a 50%-50% joint venture of Chinese domestic carmaker Chery and Israel group Kenon Holding, has taken RMB 2.5 billion loss and RMB 6 billion liability in 2015, according to the 2015 annual report released by Kenon Holdings.   

According to the report, Qoros’ revenue of 2015 totaled RMB 1.459 billion, surged by 69% from RMB 865 million of 2014, mainly contributed by the sales increase of cars. In 2015, Qoros has sold 14,250 units, doubled from 7,000 units of 2014. Meanwhile, Qoros’ sales cost also up surged 68% to RMB 1.713 billion, mainly decided by the increasing sales, while the promotion cost down by 11% to RMB 820 million from 927 million of 2014 after the implementation of a new promotion strategy, which has cut back spending on advertisements and consulting services.    

To be noted, Qoros has been operating at loss since the year of 2013 when it officially began commercial operation. In the year of 2015, even with an increased sales record, this carmaker still took RMB 2.5 billion loss, which actually increased 15% from 2014. Besides, as for December 31^st, 2015, Qoros’ liabilities has accumulated to RMB 6 billion, including long term loans, short term lending, capital contribution and cash flow from car sales.    

In the first quarter of 2016, Qoros got RMB 275 million loan from Kenon and another RMB 275 million loan from Chery, requested by the agreement between Chery and Kenon. It’s very likely that Qoros will continue to live off its parent companies in the future.

Meanwhile, Qoros sold 4,900 cars in the first quarter of this year, up from 2,490 units of last year. A Qoros SUV and several 2016 Qoros sedans also hit the market in this March.  

As of March 31^st, 2016, Qoros is supported by a sales network of 86 established dealers, 8 under construction and 9 under agreement. Influenced by a relatively slowing down car market in China, Qoros may also apply price reduction strategy to boost car sales and development of sales network.