Changan Automobile Posts CNY 2.6 Billion Net Profit for 1H 2020
After six months of losing money for the first time since listing, Changan Automobile turns losses into profits.
One of China's veteran car manufacturers, Changan Automobile, disclosed its 2020 semi-annual report on August 30. In the first half of this year, the automaker achieved an operating income of CNY 32.78 billion, a year-on-year increase of 9.73%. The net profit realized a turnaround of VNY 2.6 billion, a year-on-year increase of 216.17%.
In the first half of this year, Changan Automobile's cumulative sales reached 831,000 vehicles, up 1.3% year-on-year, outperforming the general trend, and ranking fifth in China's automotive industry. According to data from the China Automobile Association, in the first half of 2020, the cumulative sales of the Chinese automobile market was 10.25 million, a year-on-year decline of 16.9%.
Among the vehicles sold by Changan, Changan Ford accounted for 97,000, a year-on-year increase of 29.7%, Changan Mazda sold 56,000, a year-on-year decrease of 8.37 %, Changan's own brand sold 420,400, up 6.64% year-on-year. In terms of net profit, Changan Ford performed the worst with a loss of CNY 1.14 billion whereas Changan Mazda managed to generate a net profit of CNY 659 million.
In terms of expenditures, Changan Automobile’s sales expenses were CNY 1.270 billion, a year-on-year decrease of 11.95%. Management expenses were CNY 1.16 billion, an increase of 38% year-on-year, mainly due to changes in the organization and prepaid wages, etc. The R&D expenses were CNY 1.46 billion, a year-on-year decrease of 14.86%.