GAC Group sees net profit in 2020 drop 9.85% year on year

Shanghai (Gasgoo)- GAC Group gained 63.157 billion yuan ($9.657 billion) in the gross revenue for the year of 2020, posting a year-on-year growth of 5.88%, according to the annual financial results released on Thursday.

The full-year net profit attributable to shareholders shrank 9.85% over a year earlier to 5.966 billion yuan ($912.234 million). Excluding the impact of certain non-recurring gains and losses, the net profit jumped 25.17% to 4.807 billion yuan ($735.093 million).

Photo credit: GAC Group

In 2020, GAC Group's net cash flow generated by operating activities stood at negative 2.887 billion yuan ($441.486 million), versus the negative 380.571 billion yuan ($58.193 million) for the year-ago period. Additionally, the basic earnings per share were 0.58 yuan, 0.07 yuan lower than that of the previous year.

Affected by the downward pressure on economy and the impact of the coronavirus pandemic, China faced sharp plunge in auto production and sales, while the performance started recovering as the pandemic control witnessed positive changes and a slew of incentive were rolled out. GAC Group said it took steps to recover losses with main operational indicators continuing to improve and made the decrease in annual auto sales volume contract to 0.89%, which was better than the country's average level.

To enrich the product lineup of GAC's self-owned brands, the group launched quite a few all-new and refreshed models last year, including the Trumpchi GS4 PHEV, GS4 COUPE, GS8S, all-new GA8, and the Aion V. Notably, the new energy vehicle (NEV) sales of GAC’s indigenous brands surged over 40% from a year ago to more than 60,000 units.