Changan Automobile posts 35.26% year-on-year jump in Q1 2021 net profit

Shanghai (Gasgoo)- Chongqing Changan Automobile Co.,Ltd. (Changan Automobile) announced its net profit attributable to shareholders reached 853.586 million yuan ($131.614 million), jumping 35.26% over the previous year. After the deduction of non-recurring profits and losses, the company recorded a net profit of 720.085 million yuan ($111.3 million).

During the same period, the company's revenue zoomed up 176.96% from a year earlier to 32.027 billion yuan ($4.938 billion).

The significant growth in operating income was mainly due to the increase in product sales, said the company. In the Jan.-Mar. period, Changan Automobile sold 641,062 new vehicles in total, a year-on-year hike of 111.56% from the year-ago period. Four subsidiaries, namely Chongqing Changan, Hebei Changanan, Hefei Changan, and Changan Ford, all scored year-on-year increase of over 100%.

The first-quarter net cash flow from operating activities was 7.236 billion yuan ($1.116 billion), leaping 74.14% year on year mainly thanks to the substantial increase in cash received from the sales of goods and the provision of services. Meanwhile, the net cash flow generated from investment activities was minus 457 million yuan (minus $70.539 million), rising from minus 2.1 billion yuan (minus $323.811 million) in prior-year period mainly due to the significant decrease in other cash paid for investment activities.

Changan Automobile also announced an expense of 710.392 million ($109.535 million) related to R&D businesses, representing a growth of 2% compared to the first quarter of 2020.

At the Auto Shanghai 2021, the company claimed it will pour 150 billion yuan ($23.129 billion) into the R&D of the software, intelligence and low carbon technologies, the development of new business models, and the building of a top talent pool during the 14th five-year plan period (2021-2025).