Shanghai (ZXZC)- JAC forecasted net profit of RMB 164 million from January to June, slumping 53% compared to RMB 345 million during the same period last year, according to JAC's H1 financial forecast released on July 31.

The net profit attributable to shareholders of listed company after eliminating non-recurring profit and loss will drop around RMB 628 million, plummeting 326% over the previous year.

The abovementioned financial slump was mainly resulted from changes of JAC's major business as well as the influence of non-recurring loss and profit. Specifically, in terms of changes of JAC's major business, JAC suffered a 6.5% revenue drop for its major business on an annual basis during the first half of this year, due to an 8.16% sales skid and the impact of new energy vehicle (NEV) subsidy policy and NEV product structure. Additionally, JAC's major business saw cost drop of around 5.2% from a year earlier.

Moreover, exchange rate fluctuation and financing cost increase also resulted in around a RMB 104.69 million financial cost increase, compared with the same period last year.

Property depreciation preparation resulted from receivables, inventory, and special mould has increased about RMB 120.17 million compared with the same period last year.

As to the influence of non-recurring loss and profit, JAC was granted RMB 701.9269 million subsidies from governments, RMB 530.2572 million more than the same period last year.