Changan expected to see turnaround net profit of 2 bln to 3 bln yuan in first-half of 2020

Shanghai (Gasgoo)- Chongqing Changan Automobile Co., Ltd (called “Changan” for short) said its net profit attributable to shareholders for the first half of 2020 was expected to stand between 2 billion yuan ($285,804,100) and 3 billion yuan ($428,706,150), versus the loss of 2,240,040,000 yuan ($320,106,308) for the year-ago period.

The basic earnings per share for the Jan.-Jun. period were forecasted to reach 0.42 yuan ($0.06) to 0.62 yuan ($0.089), compared to the loss of 0.47 yuan ($0.067) per share for the same period a year earlier.

Changan stated that the year-on-year profit hike owed much to the improvement in the company's product structure and profitability.

Three non-recurring items contributed to the net profit worth 5.275 billion yuan ($753,808,314) in total. To be specific, introducing strategic investors for Chongqing Changan New Energy Automobile Co., Ltd., Changan's wholly-owned subsidiary, while Changan waiving its pre-emptive right to subscribe for shares of Changan New Energy, brought 2.1 billion yuan ($300,094,305) worth of net profit.

Besides, the disposal of the shares Changan held in Changan PSA Automobiles Co., Ltd. (CAPSA) and the increase in the price of shares in CATL controlled by Changan respectively produced net profits of 1.4 billion yuan ($200,062,870) and 1.775 billion yuan ($253,651,139).

(CS75 PLUS, photo source: Changan）

Changan saw its sales surged 38.11% from a year ago to 194,406 units in June, which made its year-to-date sales represent growth for the first time so far this year.

The company gained the blooming growth on account of the upward movement accomplished by all of its subsidiaries. Notably, most of them obtained year-on-year growth of over 30%.

The automaker said the sales of its self-owned brands shot up 39.1% year over year to 146,561 units in June. Specifically, the volumes of the CS75, CS35 and CS55 SUVs reached 21,070 units, 8,374 units and 7,436 units respectively, and the EADO sedan family had a sales volume of 18,247 units. The group's NEV unit sold 2,099 units. The sales of two PV brands—Oshan and Kaicheng--amounted to 12,922 units and 37,279 units.