Changan Auto turns loss to profit in Q1 2022

Beijing (Gasgoo)- On April 29th, Changan Auto released its quarterly financial report with glowing results that turned its loss into profit in the first three months of 2022.

Photo credit: Changan Auto

According to the report, Changan Auto’s quarterly revenue was RMB34.576 billion ($5.2 billion), representing a 7.96% year-on-year growth. Its net profit amounted to RMB4.536 billion ($682.29 million), soaring 431.45% from a year ago. After non-recurring deductions, Changan Auto successfully managed a turnaround from loss, with an RMB2.269 billion ($341.3 billion) net profit, surging 215.24% compared to 2021. 

Notably, Changan Auto’s young high-end EV brand AVATR is the main contributor to its boost in net profit. The subsidiary’s assessment results by March 11th were included in the automaker’s books, adding RMB2.13 billion ($320.39 million) to its net profit. 

Moreover, despite AVATR’s influences, Changan Auto’s gross margin in the first quarter still rose from 16.64% to 18.21%. 

The company sold 650,000 vehicles in the Jan.-Mar. period, edging up 1.63% year over year. Its wholly-owned brands sold 529,000 vehicles, rising 1.3% from a year ago. Among the two jointly owned brands, Changan Ford saw a 6.39% year-on-year decline, with over 60,000 vehicles sold. Meanwhile, Changan Mazda managed a 39.9% jump from the year-ago period in its first-quarter sales of 41,000 vehicles.