Changan Automobile clocks 7.25% revenue growth in Q3

Shanghai (Gasgoo)- As of September, Chongqing Changan Automobile Co., Ltd (Changan Automobile) had posted net loss for the fifth quarter in a row, while the situation became somewhat better.

According to the latest financial report, its third-quarter net loss attributable to the listed company's shareholders was RMB421.471 million, versus RMB446.525 million for 2018 Q3. Quarterly operating revenue climbed 7.25% from the year-ago period to RMB15.24 billion.

(Photo source: Changan Automobile)

The enhanced performance of indigenous brand is the force that boosted the Q3 profitability. In September, the automaker's privately-owned auto brand sold 116,015 units, up by 26% from a month earlier, partly thanks to the participation of the CS75 PLUS. Sales volume of the CS75 series exceeded 20,000 units. Both CS35 and EADO series got respective monthly sales topping 10,000 units.

Nevertheless, Changan Ford, the crucial earning contributor, is the key to pull the group out of money-losing plight. To revive sales performance of the joint venture, Changan Automobile and Ford Motor agreed in late September to cement their partnership with at least 18 new models to be rolled out by Changan Ford over the next three years.

In addition, the automaker chalked up a total net loss of RMB2.662 billion for the first three quarters of 2019, a plunge of 328.83% from the profit of RMB1.163 billion for the prior-year period

Operating revenue totaled RMB45.115 billion, down by 9.5% from a year ago.

（Photo source: Changan Mazda)

During the period from January to September, Changan Autombile also suffered a 142.38% year-over-year slump in investment gains, mainly due to the decrease in investment income of joint ventures, said the company. 

The decline in sales was the major reason causing the cumulative net profit slump, according to the Chongqing-based carmaker. For the first nine months, Changan Automobile saw its sales sharply slide 23.6% to 1,225,879 units, of which sales volume of Changan's self-owned PVs declined 19%. Moreover, both Changan Ford and Changan Mazda recorded year-on-year decrease of 58.2% and 25.4% respectively.