Chinese automaker Dongfeng’s first-half net profit slumped 76.9% on year

 

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Chinese automakers Dongfeng Motor’s net profit for the first half of the year reached 1.27 billion yuan, slumping 76.9% from 5.50 billion yuan a year earlier. Earnings per share was 0.1479 yuan, compared to 0.6384 yuan a year earlier. 

Revenue rose by 7.7% year over year to 45.68 billion yuan from the year-ago period. 

Profits from its joint ventures plunged to 1.4 billion yuan in the first half from 5.23 billion yuan a year earlier.

One of the main factors behind the profit slump is accelerated transformation as the firm is increasing its investment in building new energy vehicle brands, platforms, commodities, and core technology resources, the company had warned earlier this month.

In the first half of the year, the market share of the group’s joint venture non-luxury passenger car brands declined and the commercial vehicle market recovered slowly, it warned. Dongfeng relies heavily on a number of joint venture brands with big carmakers including Nissan, Honda, Citroen, and Kia.

Dongfeng aims to become more self-sufficient, widen its new energy vehicle portfolio, and rely less on JV brands in the future, it had said.