A few days ago, Changan Automobile released the first quarter of 2022 financial report, continuing the strong trend in 2021, and at the beginning of 2022, Changan Automobile once again ushered in double growth in revenue and net profit.
According to the data, from January to March 2022, Changan Automobile achieved operating income of 34.576 billion yuan, an increase of 7.96% year-on-year; net profit attributable to shareholders of listed companies reached 4.536 billion yuan, up 431.45% year-on-year.
On April 28, Avita announced a new round of valuation growth to 6.26 billion yuan, an increase of nearly 7 times compared with the valuation of the first financing expansion in November 2021. At the same time, Avita Technology has changed from a holding subsidiary of Changan Automobile to an associated enterprise, so it is no longer included in the scope of consolidated statements and adopts the equity method for subsequent accounting. Based on the assessment results on March 11, Changan Automobile's net profit in the first quarter increased by about 2.128 billion yuan.
In addition, after the completion of the closing, the independence of Avita Technologies has been further improved, and the capitalization operation space is greater.
According to the financial report, due to the impact of the global epidemic and external factors in the first quarter of 2022, there were sharp fluctuations in bulk raw materials and precious metals, resulting in an increase in the purchase price of Changan Automobile-related parts and raw materials, and the cost was under pressure.
Changan Automobile said that it will continue to promote the work of reducing costs and increasing efficiency throughout the region, and strive to reduce the adverse impact of rising raw material prices on operating results. At the same time, we will strengthen the optimization of resource allocation in all links, strengthen the matching of resource allocation and output, focus resources on high-value models, and stabilize corporate earnings.
As for the sporadic situation of the epidemic in some parts of China in the first quarter, it also had a greater adverse impact on the production and operation of Changan Automobile, and the production of some suppliers was restricted and the logistics were blocked, resulting in a shortage of parts such as Changan Automobile chips, resulting in a certain degree of drop.
From January to March 2022, Changan Automobile sold 651,500 units, a slight increase of 1.63% year-on-year. Sales of self-owned brands increased by 1.3% year-on-year to 529,400 units, of which 363,300 units were sold, down 1.34% year-on-year.
Overall, in the case of a more severe situation in the domestic automobile market, Changan Automobile still shows relatively strong brand strength, and it is believed that Changan Automobile will further grow upwards while waiting for the end of adverse effects such as the epidemic.