Haima expects narrowed year-to-date loss

Beijing (Gasgoo)- Haima Motor expects its loss for the first three quarters of this year to be narrowed from a year earlier, but the loss in the third quarter will be widened when compared with the same quarter of last year, the automaker said in a statement.

Haima 6P; photo credit: Haima

For the third quarter, Haima’s net loss attributable to the shareholders of the listed company is expected to be from RMB70 million ($10.87 million) to RMB95 million ($14.75 million), more than the loss (RMB61.69 million) of the same period of last year.

Its loss for the first three quarters is forecasted to decrease from RMB234.49 million of last year to a range of RMB153 million to RMB178 million.

The first reason for the loss is that it is in a critical stage of product strategy adjustment and marketing mode innovation. In August, Haima said its strategic deployment turned to focus on hydrogen vehicles and it has completed the development of the prototype car of its first fuel cell vehicle and is working on its third-generation fuel cell vehicles. However, the company’s products failed to realize expectation in market performance despite the improvement in internal and external operating efficiency.

Besides, the operation of its Zhengzhou base was affected by the COVID-19 and record rainfall, resulting in continuous loss of the company. In the future, Haima will further strengthen the marketing and promotion of its strategic products and continue to dispose of inefficient and invalid assets to improve performance.

Last month, Haima produced 1,193 vehicles, up by 3.92% from a year earlier while its quarterly sales nearly doubled from 2,920 from a year to 5,784 vehicles. By the end of September, the automaker has sold a total of 22,328 vehicles this year, surging 136.3% year on year.

Its manufacturing contract with China’s electric vehicle startup XPeng will not be renewed when it ends at the end of this year, which will have certain influence on its performance.