Chongqing Changan Automobile turns losses into profits during first half of 2020

Shanghai (Gasgoo)- Chongqing Changan Automobile Company Limited (Changan) procured roughly 32.782 billion yuan ($4,786,272,132) in the operating revenue for the first half of 2020, a year-on-year increase of 9.73%, according to the company's semi-annual financial results.

For the same period, Changan's net profit attributable to shareholders amounted to 2.602 billion yuan ($379,928,213), recording an impressive surge from the year-ago loss of 2.24 billion yuan ($327,056,065). However, after deducting non-recurring profit and loss, the company still suffered a net loss of 2.617 billion yuan ($382,077,677), versus the loss of 2.912 billion yuan ($425,131,405) for the prior-year period.

Changan said its profit for the first six months was greatly affected by non-recurring gains and losses. Notably, the government subsidies included in the profit and loss of the reporting period amounted to 215.978 million yuan ($31,533,770).

According to the financial preview Changan released in mid-July, three non-recurring items contributed to the net profit worth 5.275 billion yuan ($770,174,160) 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 ($306,609,620) 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 ($204,406,410) and 1.775 billion yuan ($259,158,130).

The company noted that its Jan.-Jun. R&D expenses reached around 1.465 billion yuan ($213,831,653), dropping 14.86% year over year.

Changan said it has built up a world-class R&D capability backed by the industry-leading global R&D system. It accelerated the “Beidou Tianshu” and “Shangrila” projects for the transformation into smart technology company. As the core of the intelligent strategy, Changan Automobile’s global software center, which is located in Xiantao Data Valley, is dedicated to building a world-leading, autonomous, safe and controllable software technology and mobile intelligent platform in China. As of June 2020, a total of 14,411 patent applications have been filed at home and abroad, including 4,449 for invention patents.

(UNI-T, photo source: Changan)

In terms of the achievements of innovative technologies, the Level 3 autopilot uses UNI-T to achieve the first domestic mass production, including 40 km/h under the congestion of automatic driving function and 40 km/h above high-speed automatic driving auxiliary function. The "PM0.1" composite anti-bacterial and anti-toxic high-efficiency filter passed the Certification Center "CATARC CN95" certification issued by China Automotive Technology Research Center, carrying with the Eado PLUS. Ultraviolet lamp sterilization system was carried with UNI-T debut.

Moreover, breakthroughs have been made in such advanced technologies as load distribution and structural optimization of carbon fiber body, integrated design of carbon fiber body and aluminum alloy frame, connection technology of various lightweight materials, etc. , to achieve carbon fiber, aluminum alloy and other lightweight materials integrated applications.

For the first two quarters, Changan saw its automobile sale rise 6.04% over a year ago to 995,923 units, thanks to the vigorous impetus delivered by Hefei Changan and Changan Ford.