- In a statement to the Shanghai Stock Exchange, FAW Car Co. (000800.SZ) said it expects to post a net loss for 2016 of between RMB 945 million and RMB 970 million.
- EPS for 2016 is estimated at between minus RMB 0.58 and minus RMB 0.6.
Why It Matters:
- FAW Car posted a net profit of RMB 52.95 million in 2015. EPS for 2015 was RMB 0.03.
- FAW Car says that the company has faced unprecedented pressures from both the market and development bottlenecks. Competition in the Chinese automotive industry has grown increasingly fierce. In 2016, FAW sold 193,500 complete cars, down 17.97% compared with the previous year.
- However, FAW remains optimistic about the future, as the company claims to have successfully “upgraded its product structure and introduced new products.” FAW Car hopes that these new products, including compact SUVs and MPVs, will improve the company’s performance.