Shanghai (ZXZC)- Jinbei Auto released its 2017 financial results on Jan. 31, expecting that it would gain annual net profit of RMB 100 million with a surge of 147.98%, compared to the loss of RMB 208 million in 2016.

The expected net profit mainly resulted from the disposal loss and profit of non-current asset of RMB 462 million, governmental subsidies of 172 million and earnings on debt restructuring of 50 million. Deducting the non-recurring profit and loss, Jinbei expected to lose RMB 584 million, which was mainly due to the loss from Shenyang Jinbei Vehicle Manufacturing Co., Ltd. in 2017. 

According to the regulations of related accounting standards, Jinbei had conducted impairment test for its assets in 2017. The expected accrual assets depreciation reserves reached RMB 247 million. Among them, the accrual inventory falling price reserves reached RMB 174 million and the accrual bad debt reserves were RMB 40 million.