Changan Auto expected to gain up to 3.8 billion yuan in Q1-Q3 net profit

Shanghai (Gasgoo)- Chongqing Changan Automobile Co., Ltd. (Changan Auto) said its net profit attributable to shareholders for the first three quarters was forecasted to reach 3.2 billion yuan ($474,334,050) to 3.8 billion yuan ($563,271,680), shooting up 220.23% to 242.78% from the year-ago net loss of 2,661.51 million yuan ($394,514,000).

For the third quarter, the automaker expects its net profit to stand between 597.83 million yuan ($88,615,980) and 1,197.83 million yuan ($177,553,610), skyrocketing from the loss of 421.47 million yuan ($62,474,240) for the same period in 2019.

The turnaround in the net profit should be mainly thanks to the increase in company's auto sales, the optimization in product structure and the improvement in the profitability of its self-owned and joint-venture businesses, said Changan Auto.

The automaker also announced non-recurring items brought nearly 5.6 billion yuan ($830,084,580) to the Q1-Q3 net profit attributable to shareholders.

With 205,543 vehicles sold, Changan Auto reported a 28.65% year-on-year leap in Sept. sales, achieving growth for six consecutive months.

Thanks to the incessant increase, Changan Auto's year-to-date sales jumped 12.01% compared to the year-ago period to 1,370,881 units, 2.49 percentage points higher than the growth in Jan.-Aug. sales.

Ren Wanfu, a senior car industry analyst, said the growth in Sept. sales mainly stemmed from the driving forces offered by Changan’s self-owned brand and the joint venture Changan Ford.

At the Auto China 2020, Changan Auto unveiled the Vision-V concept, the second show car from the Yinli series. Staying true to the philosophy of functionalism, the concept embodies the automaker's ambition to further go upscale.