Chinese automaker Changan says first-quarter net profit surges 130.1%

Shanghai (Gasgoo)- Chinese automaker Chongqing Changan Automobile Co.,Ltd. (Changan) said it gained a net profit of RMB631,077,888.63 attributable to shareholders during the first quarter, a year-on-year surge of 130.1% from the net loss of RMB2,096,352,326.12 for the year-ago period.

Excluding non-recurring gains and losses, the company still suffered a net loss of RMB1,793,324,817.62, versus the year-ago loss of RMB2,161,147,810.27. The substantial variance may be partly due to the government subsidies of RMB57,408,092.65 recorded into current gain/loss account.

During the same period, its revenue slid 27.76% year on year to RMB11,564,077,463.34. The cash flow from operating activities stood at RMB4,155,344,266.52, jumping 27.51% as a result of the significant decrease in cash paid for purchasing goods and receiving services.

The operating cost decreased 30.58% from a year earlier to RMB10,555,130,992.83, mainly thanks to the year-on-year decline in product sales volume.

Due to the reclassification of the company's expenses, the first-quarter management expenses slumped 35.49% to RMB404,138,581.75, while R&D expenses soared 53.08% to RMB697,946,683.12.

Affected by the coronavirus eruption, Changan witnessed its Q1 sales decline 32.1% over a year ago to 303,078 units. However, the decrease in March sales significantly contracted to 28.7%, versus the 43.3% drop in China's overall auto sales.

One of bright spots is the revival of Changan Ford's performance. According to Changan's sales report, the Sino-U.S. joint venture sold 30,456 new vehicles in the first quarter, posting a 17.2% year-on-year decrease, the smallest one among Changan's subsidiaries. Its March sales dipped 27.9% from the year-ago period, helping Changan outpace the overall auto industry. Reportedly, it even over-fulfilled the retail sales target set for March, in part thanks to a series of measures adopted to support its dealers.