JAC's gross profit from its main businesses decreased by about RMB 832 million in the January-June period compared to the same period last year due to rising prices of raw materials.

(JAC Sehol X6. Credit: JAC)

Nio's automotive manufacturing partner, Anhui Jianghuai Automobile Group Corp (JAC), expects to post a loss in the first half of the year, as higher raw material prices take their toll.

JAC expects to see a net loss attributable to shareholders of RMB 707 million ($105 million) in the January-June period and RMB 1.075 billion after recurring gains and losses, according to an exchange announcement it made today.

By comparison, in the same period last year, JAC achieved a net profit attributable to shareholders of RMB 478 million, and a net loss of RMB 274 million after recurring gains and losses.

The company sold 235,200 vehicles in the first half of the year, down 17.47 percent from a year earlier, due to the Covid outbreak and chip shortages, JAC said.

Higher prices of raw materials including chips and batteries led to a decrease of about 832 million yuan in the company's gross profit from its main business in the January-June period compared with the same period a year earlier, it said.

In terms of non-recurring gains and losses, JAC received about RMB 293 million in government grants in the first half, down about RMB 171 million from the same period a year earlier.

JAC earned about RMB 21 million from asset disposal in the first half, a decrease of about RMB 364 million from the same period of the previous year.

From January to June, JAC sold a total of 235,210 vehicles, of which 80,089, or 34 percent, were electric vehicles (EVs).

JAC is Nio's vehicle production partner, and although it does not specify, its EV sales should include Nio's vehicles.

Nio delivered 50,827 vehicles in the first half, up 21.14 percent from 41,956 in the same period last year.

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