FAW Car’s net profit for the first half fell 38.7% year on year to CNY 804m (US$125.9m).
The car maker cited ‘unpredicted events’ for the dip in performance. These include the American credit crisis, the gradual removal of vehicle purchasing subsidies, rising petrol prices and the new vehicle purchase restrictions.
In addition to these, the automaker also blamed its poor performance on rising costs and lowered prices.
The manufacturer expects its third quarter profits to be between CNY357m ($55.94m) and CNY893m ($139.93m). This suggests a decline of 50% to 80% from the third quarter of 2010.