Dongfeng Group suffered a loss of nearly RMB 4 billion last year.

March 28, Dongfeng Motor Group Co., Ltd. (referred to as “Dongfeng Group”) announced its performance in 2023.

The financial report shows that in 2023, Dongfeng Group’s revenue was about 99.315 billion yuan, an increase of about 7.2%. In 2023, the shareholder’s attributable loss was about 3.996 billion yuan, which decreased by about 14.261 billion yuan compared with the shareholder’s attributable profit of about 10.265 billion yuan in the same period last year. This is the first loss suffered by Dongfeng Group since its listing in 2005.

Dongfeng Group believes that the main reason for the change in performance is that the market space of non-luxury brands in joint ventures has been greatly squeezed, and product prices continue to decline. In 2023, the sales volume of the group’s joint venture business decreased by 16%, and profits decreased significantly; the investment in new energy and intelligence continues to increase.

In terms of sales, in 2023, Dongfeng Group sold about 2.0882 million vehicles, a year-on-year decrease of 15.3%. Among them, the sales of self-owned brand passenger vehicles were 347,400, a year-on-year decrease of 30.2%.

Dongfeng Motor Group is a super-large automobile enterprise directly managed by the central government. According to the list of central enterprises of the State-owned Assets Supervision and Administration Commission of the State Council of China (SASAC).

Since February this year, at least 5 officials of Dongfeng Motor Group have been ousted. In the first half of 2023, 6 people were referred to the procuratorial organs, 12 public officials were taken retention measures, and 87 people were disciplined. This includes Zhu Yanfeng, the chairman of Dongfeng Motor Group.

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