Dongfeng sees net profit surge 116% to RMB 291 million in H1

Shanghai (Gasgoo)- Dongfeng Motor Corporation (Dongfeng) posted revenue of RMB 5.789 billion during the first half of 2018. Its net profit attributable to shareholders of listed company reached RMB 291 million during the first six months, soaring 116.1% from a year ago.

From January to June, Dongfeng delivered 69,800 vehicles, up 10.7% on an annual basis. During the first half of 2018, Dongfeng saw almost the same growth in lightweight commercial vehicle (LCV) as that of the whole industry. Thanks to the completion of its product lineup and enhanced competitiveness of its products, sales of lightweight truck gained a surge of 26.43% year on year to 56,800 units. Due to the sales skid of whole bus chassis market, Dongfeng posted a bus chassis drop of 23.91% to 11,500 units. Impacted by the adjustment of NEV subsidy policy in the first half of 2018, Dongfeng suffered substantial NEV sales drop of 60.22% to 2,800 units.

Additionally, Dongfeng also warned and elaborated the possible net profit loss or substantial YoY change for the beginning of this year and the end of this year. According to the announcement, Dongfeng may face a bunch of risks. As the emission regulations continue to escalate, complete vehicle will see larger cost growth and stricter technology requirement, thus the profitability of whole industry will be withered. Considering this aspect, Dongfeng will actively promote the product upgrade to snatch market shares. What's more, Dongfeng Motor is likely to face increasingly intensified competition in auto industry and the risks from NEVs, including phasing-out of NEV subsidies and the increasingly high standard for NEVs.