Beijing (ZXZC)- China’s state-owned automaker JAC Group saw a widened net loss after non-recurring deductions in the first quarter of 2022, compared to a year ago, according to its performance forecast.

Photo credit: JAC Group

From January to March, JAC Group’s business operations should result in a net loss of RMB307 million ($48.16 million) attributable to shareholders. In the meantime, the company’s attributable net loss after non-recurring gains is estimated to equal RMB485 million ($76.09 million). Comparing to the preivous year, JAC Group’s net profit attributable to shareholders summed up to RMB189 million ($29.65 million) in the first three months of 2021. After non-recurring gains, the company reported a net loss of RMB41.67 million ($6.54 million).

Additionally, the non-recurring gains in the first three months of 2022 were results from assets disposal, which liquidated roughly RMB8 million ($1.26 million) to cash and were RMB158 million ($24.79 million) less than a year ago. 

The automaker explained that the negative numbers resulted from the combination blow the company took on during the past three months, from COVID and the price hike of raw materials. 

From January to March, JAC Group sold 129,400 units of cars and chassis, decreasing 11.67% year over year. Meanwhile, with the market jacked up its costs, the company’s gross margin was slashed by RMB418 million ($65.58 million) compared to the year-ago period.