Shanghai (ZXZC)-It’s revealed from the semi-annual report that Ankai Automobile shows bad financial performance in the first half of the year. It has a total sales volume of 4,198 units with a year-on-year decline of 2.87%. The sales revenue reaches RMB 2.377b, growing 33.57% compared with the same period of last year. The net loss reaches RMB 28.78m, decreasing 249.89%. Till the end of reporting period, Ankai Automobile has a total asset of RMB 8.99b and debt of RMB 7.57b, with asset-liability ratio reaching 84.19%. It’s revealed by analysts that the high asset-liability ratio may resulted from the alternative energy subsidy receivables, reaching RMB 2.24b till the end of reporting period.

It’s also shown from Ankai Automobile’s financial reports that it has high asset-liability ratios for several consecutive years, with the number reaching 71.2%, 76.7% and 83.8% in the year 2014 to 2016 respectively. It’s analyzed that its limited profitability forces Ankai Automobile to get into debts to ensure enough circulating funds. Besides, Ankai Automobile’s heavy dependence on government’s support also limits its developments.

In fact, Ankai Automobile’s market performance is not satisfactory, implying operation crisis. It’s introduced that Ankai Automobile once tried to make breakthroughs in middle-size buses but failed. Besides, the products are mainly sold in Anhui and Guangdong Province, with narrowing market shares in other areas.