FAW Car expects a loss of up to 350 million yuan in the first three quarters

Despite catching up with the purchase of official vehicles, the loss of FAW Car continued to expand in the third quarter after the performance of the semi-annual report drastically dipped.

FAW Car announced yesterday's performance announcement for the first three quarters of 2012 yesterday evening that the company’s performance is expected to have a large loss in the third quarter of this year. It is expected that net profit for the period from July to September 2012 will be RMB 193 million to RMB 288 million, which was a profit in the same period of last year. 49.86 million yuan; In the first three quarters of this year, the net profit attributable to the shareholders of the listed company was a loss of 255 million to 350 million yuan, compared with a profit of 754 million yuan in the same period of last year.

According to the announcement, in the report period, affected by the slowdown of domestic macroeconomic growth and weak market demand, the domestic automobile market has become increasingly fiercely competitive, and independent brands have been subject to greater challenges.

However, there are also people in the industry who believe that despite the unfavorable market conditions and other reasons, the performance of FAW Cars has continued to decline since 2011, until the first loss in the first quarter of 2012, does not rule out the intention to strategically reduce profits, so that The reason for pave the way for the overall listing of FAW.