Beijing (ZXZC)- JAC Group is expecting a semi-annual net loss of RMB707 million ($104.8 million) in the first half of 2022, according to the group’s unaudited financial projections. 

Photo credit: JAC Group

In the Jan.-Jun. period, JAC Group’s net loss attributable to shareholders is estimated to be around RMB1.075 billion ($159.35 million) after non-recurring deductions. In contrast, the automaker’s semi-annual net profit attributable to shareholders amounted to RMB477.73 million ($70.82 million) in the same period in 2021. After non-recurring adjustments, the company reported a net loss of RMB273.8 million ($40.59 million). 

JAC Group explained that due to the pandemic and industry-wide chip supply crunch, the automaker sold 235,200 units of vehicles and chassis in the first six months of 2022, representing a 17.47% drop year over year. In the meantime, the rising cost of raw materials such as chips and batteries led to a shrink in JAC Group’s gross profit in the Jan.-Jun. period by roughly RMB832 million ($123.33 million). 

In the reporting period, JAC Group received RMB293 million ($43.43 million) worth of government subsidies, which was RMB171 million ($25.35 million) less than a year ago.