Changan profit declines 25% in previous three quarters

Shanghai (Gasgoo)-On Oct. 25, Changan Automobile released its financial report of the previous three quarters in 2017. The revenue of Changan decreased 4.06% year on year to RMB 51.431 billion, and net profits attributable to shareholders of listed companies dropped 24.92% year on year to RMB 5.811 billion. During July and September, Changan earned RMB 1.19 billion with a year-on-year decrease of 47.07%.

In the first half of this year, Changan posted a revenue decline of 6.27% year on year to RMB 35.555 billion, and net profits attributable to shareholders of listed companies fell 15.85% year on year to RMB 4.621 billion. In the previous nine months this year, Changan produced 1.999321 million model units and sold 2.058204 million model units with a year-on-year decline of 6.07% and 6.3% respectively.

By the end of September, 2017, the total assets of Changan Automobile reached RMB 104.379 billion with a slight drop of 2.0% compared with the beginning of this year. The company's total liabilities and assets liabilities ratio reached RMB 58.223 billion and 55.78% respectively with a decrease of 7.81% and 3.52% compared with the beginning of this year. The company's balance of accounts receivable and the prepayment balance have increased substantially, mainly due to the growth of its external credit sales and the prepayment increase of the imported transmission and steel respectively compared with the beginning of this year. Changan also registered a growth of inventory balance compared with the beginning of this year, mainly contributing to its inventory growth.

The company's senior executive once expressed their confidence in tackling the temporary dilemma this year. Changan will usher in a new round for their upgraded products, and will introduce a variety of new self-owned models in the market. At the same time, Ford Motor Company had promised to add heavy investment on JV company and will release a bunch of advanced green new models. Therefore, Changan is capable enough to reshape its powerful market competitiveness with its industry-leading R&D capability.