Chang'an Automobile 500 Million Idle Capital Money Management

In order to increase the efficiency of the company’s working capital, Chang’an Automobile (000625) plans to reserve funds for daily operations under the premise of ensuring liquidity and fund security, and authorize the selection of currency funds and banks with low risk, good liquidity, and higher returns. For financial products (protected capital), the balance shall not exceed RMB 500 million and the authorization period shall be 1 year.

The quarterly report issued by Changan Automobile on the same day shows that from January to March, the company's profit was 722 million yuan, a slight decrease of 9.26% year-on-year, and earnings per share of 0.27 yuan. According to the company, in the first quarter of this year, due to the withdrawal of preferential policies for automobile sales, rising oil prices, and restricted purchases by some cities, the auto market has become more stable than in 2010, and mini vehicles have been greatly affected. From January to March 2011, the company sold 353,100 vehicles, a year-on-year decrease of 2.69%.