Summary: JAC Motors 2017 net profit slumped YoY 62.83% to RMB 432 million
JAC Motors, a Chinese state-owned automaker announced that the company achieved a total of operational revenue of RMB 49.2 billion in 2017, falling by 6.33% year on year. The net profit attributable to the shareholders reached RMB 432 million, slumping 62.83% from a year earlier.
Affected by the profit downturn, the members from the operational team received punishment of pay cuts. The salaries of senior executives and members of the board were halved averagely.
According to the financial reports, JAC Motors sold a total of 510,900 units of vehicles and chassis in 2017, sharply dropping 20.58% year on year. The company's sales decline was mainly affected by the sales downturn of SUVs. According to the data released by the automaker, JAC Motors delivered 121,300 SUV models throughout 2017 which was 154,200 units less than that of in 2016. The automaker said the sales depression resulted from the S3's sales drop and the disappointing S7's sales after it hit the market. In addition, the phase-out new energy vehicle (NEV) subsidiary and the rising raw material prices also caused the sales frustration to some degree.
As to the battery electric passenger vehicles, a total of 28,352 BEVs were delivered last year, jumping 53.86% over the previous year, among which the IEV series’ annual sales reached 23,153 units.
Last year, the joint venture, jointly founded by JAC Motors and the German automaker Volkswagen, was officially established, which was designed to produce BEVs. Besides, the ES8, the first model produced for NIO, officially went on sale at the end of 2017.
In 2018, JAC Motors plans to launch several NEV models like iEVA50 to further enlarge its market shares in NEV segment. Meanwhile, the company aims to make the NEV sales account for over 30% of its total sales.