Shanghai (ZXZC)- JAC Motors reported earlier this month a predicted year-on-year surge in the net profit for the first three quarters despite its sales downturn.

From January to September, the Anhui-based automaker expected its net profit attributable to shareholders of the listed company to reach RMB124 million ($17.6 million), an impressive year-on-year growth of around 159% 

In addition, the net losses excluding non-recurring gains and losses were predicted to be RMB80 million ($11.3 million), up by RMB746 million ($105.6 million) compared with the year-ago period.    

The company said the performance growth resulted from its product structure adjustment and cost control. 

(Photo source: JAC Motors)

However, JAC’s cumulative sales of 321,000 units from January to September slid 11.3%. Of that, 194,000 CVs were sold, a year-on-year decline of 7.2% and the sales of PV amounted to 127,000 units, falling 16.5%.       

In the first three quarters, the automaker received about RMB463 million ($65.5 million) government subsidies, decreasing RMB565 million ($80.0 million) over the previous year, according to the latest announcement. An auto industry observer said JAC’s profitability was worrying amid the subsidy phase-out and downturn trend of the industry.    

Besides, JAC Volkswagen Automotive Co., LTD., a joint venture between Volkswagen and JAC, has not gained profit yet. The joint venture posted a loss of  RMB274 million ($38.8 million) in 2018, as it was still in a R&D stage, according to JAC’s announcement in response to inquiry from the SSE (Shenzhen stock exchange) concerning the 2018 annual report. The parent company announced investment losses of RMB137 million ($19.4 million) in it.