Changan Automobile posts 90.83% year-on-year slump in 2018 net profit

Shanghai (Gasgoo)- Chongqing Changan Automobile Co., Ltd (Changan Automobile) reported on April 15 that its full-year revenue in 2018 reached RMB66.298 billion, declining 17.14% over a year ago. Its annual net profit attributable to shareholders of the listed company plunged 90.83% from the previous year to around RMB654 million.

On the same day, the automaker released a review of its performance in the first quarter of 2019, with an expected net loss of around RMB1.7 billion to RMB2.5 billion attributable to shareholders of the public company, nosediving 222.14% to 279.62% compared with RMB1.39179 billion net profit earned in the same period a year earlier.

The automaker mainly ascribed the Q1 net profit slump to the sales decrease. For the first three months of the year, Changan Automobile saw its cumulative sales tumble 31.8% year on year to 448,811 units.

Although both profit and sales were currently hit by downturn, the Chongqing-based carmaker doesn't slow down the pace to launch new products and develop vehicle intelligence and electrification technologies. At the Auto Shanghai 2019 kicking off on April 19, Changan Automobile showcases a total of 22 models, including the CS75 PLUS and the CS85 COUPE, as well as a number of advanced technologies. The company said it aims to complete three new energy vehicle (NEV) platforms by 2020 and fully stop selling traditional fuel-burning vehicles in 2025. Earlier this month, the automaker formally started the operation of its global R&D hub, which involved an investment of RMB4.3 billion, with the extension of the global smart R&D platform.