Recently, FAW car released the 2016 annual report. During the reporting period, the company achieved income of 22.71 billion Yuan, 14.83% less than the year ago; the net profit loss attributable to shareholders of listed companies reached 954 million Yuan; basic earnings per share was -0.59 Yuan; weighted average net assets yield rate was -11.64%. The company planed not to send cash dividends or bonus, nor increase by transferring.

According to the report, in 2016 the company was faced with unknown pressure and challenges due to the market environment and their own development. The company achieved the overall sales of 193 thousand and 500 units last year, 17.97% less than last year, resulting in the decline of revenue and profits index compared with last year.

In the annual report FAW car shows that in the narrow-sense passenger car market where the company is currently located, the leading automobile companies includes SAIC Volkswagen, FAW Volkswagen, Changan automobile, the Great Wall automobile, Geely Automobile. FAW’s products are facing enormous pressure and challenges.

At the same time, the annual report mentions that the company intends to terminate the construction of Chinese FAW D021 project. It is understood that the project is to produce a new developed high-end MPV model, which has actually been invested 209 million Yuan. The company says the termination of this project is a decision based on the careful analysis and study of the objective conditions and market environment changes. It can avoid loss of investment, improve the funds usage efficiency, meet the overall interests of company development.