Shanghai (ZXZC)– On October 31, Tianjin FAW Xiali Auto Co., Ltd. (hereinafter referred to as "FAW Xiali") released 2017 third quarter report. According to the report, the operating income of FAW Xiali in third quarter is about 374 million, a year-on-year decline of 20.26%; net loss attributable to shareholders of listed companies is about RMB 437 million, up 42.86% compared to the same period of in last year. Net loss in the first three quarters of listed companies was RMB 1.123 billion. The loss increased 36.14% compared with the same period last year.

Though FAW Xiali did not elaborate on the reasons for the loss in this report, uncompleted product structure adjustment and small marketing scale may be the main reasons according to its previously released preview. Besides, 15% stake of Tianjin FAW Toyota Motor Co., Ltd. was transferred in 2016, resulting in lower shareholding ratio and decrease in investment income.

Rumors are flying about how FAW Xiali find the way out. News like “FAW Xiali merges into FAW Besturn” and “FAW Xiali is turning to Dong Mingzhu" is endless. However, relevant news is either denied or gets no response. The future of FAW Xiali is still unclear.

According to the announcement of FAW Xiali on Oct. 19, the controlling shareholder of the company intends to transfer part of the shares. After the completion of the share transfer, there will be a change in the controlling shareholder. As approval process is still in progress, the company's stock will continue to be suspended. According to the interpretation of relevant insiders, this announcement means that the proportion of share transfer will be more than 24% and FAW Xiali may also be renamed.