Shanghai (Gasgou) – Great Wall Motor announced on November 13 that it plans to issue up to RMB 5 billion of ultra-short-term finance bonds to optimize its debt structure and the funds raised will be used to supplement the fund. rollover and pay off interest-bearing debts.
“Ultra-short-term funding bonds” as mentioned here refer to short-term funding bonds with a term of 270 days or less, which are issued by non-financial corporations with legal personality and a credit rating high in the interbank bond market. With more flexibility over short-term finance bonds, ultra-short-term finance bonds can help companies break the bottleneck of short-term working capital scarcity and improve the level of cash flow. liquidity management.
Affected by the stagnation of the auto market and investments in new businesses, automakers are increasingly dependent on cash flow. Automakers such as JAC Motors and Zotye Auto have previously announced that they will use the unused funds collected to supplement routine working capital to ease the pressure of inventory and collection of payments.
Great Wall Motor suffered a 3.29% year-over-year drop in sales, with a total of 786,756 vehicles delivered from January through October. In addition, the automaker’s third quarter revenue fell 19% from a year ago to RMB 17.966 billion. Its third-quarter net profit attributable to shareholders of the listed company was nearly halved to RMB 231 million from the same period last year.
For the first three quarters, Great Wall Motor achieved revenue of RMB 66.65 billion with a 5% year-on-year increase, while net profit attributable to shareholders of the listed company jumped 36. 36% to 3.927 billion RMB. The cash flow for the first nine months reached 16.46 billion RMB. The automaker said its profitability has improved thanks to the growing share of sales of WEY-branded vehicles.
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