Lifan Technology forecasts 170% YoY surge in 2022 annual net profit

Shanghai (Gasgoo)- Chinese motor vehicle manufacturer Lifan Technology announced on Wednesday it was anticipated to record an annual net profit attributable to shareholders of around 150 million yuan ($22.126 million) in 2022, which should surge 170% compared to the previous year.

Excluding the impact of certain non-recurring gains and losses, the company's full-year net profit belonging to shareholders is anticipated to reach roughly 30 million yuan ($4.425 million), versus the net loss of 36. 5 million yuan ($5.384 million).

LIVAN 9; photo credit: Lifan Technology

Lifan Technology said one of the main factors contributing to the profit leap was the robust growth in its vehicle output and sales with the gradual recovery of the company's automobile business.

According to the company's sales results, Lifan Technology's automobile production and sales volumes stood at 34,706 units and 56,816 units last year, rocketing 778.63% and 1,371.15% from a year earlier, respectively.

Notably, the company scored a three-digit surge in both annual new energy vehicle (NEV) output and sales, which amounted to 16,226 units (+312.04% YoY) and 41,142 units (+979.84% YoY), respectively.

Lifan Technology also noted that its yearly profit growth was partly attributed to the decrease in its management expenses as a result of the overall improvement in management quality, and the reduction in the losses on external investment made before the corporate’s restructuring.

In addition, the increase in foreign exchange gains, which resulted from the appreciation of the U.S. dollar against the Chinese yuan, is also accountable for the profit growth.