JAC makes turnaround from losses in H1

Beijing (Gasgoo)- JAC Group made a turnaround from losses in the first half of this year as its semi-annual sales saw an increase of 36.12% from a year ago, the automaker said in its financial report.

JAC's SEHOL；photo credit: JAC

Revenue grew by 13.87% year on year to RMB22.38 billion in the first half while the net profit attributable to the shareholders of the listed company totaled RMB478 million from losses of the same period of last year. In the meantime, a RMB710 million net operating cash flow was generated for the first half of this year.  

Sales growth was the main driver for JAC’s turnaround. As a comprehensive automaker whose business covers the research and development, manufacturing, sales, and services of both commercial vehicles and passenger vehicles, JAC sold a total of 285 thousand vehicles and chassis in the reporting period, up by 36.12% year on year, while manufactured 44 thousand vehicles for NIO in the first half of this year. 

Sales of light trucks (including medium trucks), as well as passenger vehicles saw an increase, whereas sales of heavy-duty trucks decreased by 4.66% year on year, down to 25.9 thousand vehicles. Export volume of JAC reached 34.1 thousand vehicles, surging by 125.84% year on year.

Aside from product sales, report shows an increase of RMB255 million in asset disposal, including selling one of its factories and revenue generated from land reservation. Land reservation brought the company RMB191 million in compensation in the period.

Cost of operation also raised. Specifically, the cost of R&D jumped 42.09% to RMB610 million in the first two quarters of this year. According to the report, R&D investment was mainly used in passenger vehicle improvements.

Chip shortage and increase in raw material price are challenges JAC continues to face in the rest of this year. JAC said it will take several measurements to minimize the influence. Meanwhile, JAC will accelerate its development of NEVs and smart cars, work closer with NIO and Volkswagen to promote its brand, and enhance its competitive advantages.