Recently,Changan Automobile released its 2024 interim performance report.The financial report shows that in the first half of 2024,Changan Automobile achieved operating income of 6.723 billion yuan,a year-on-year increase of 17.15%; the net profit attributable to shareholders of the listed company was 2.832 billion yuan,a year-on-year decrease of 63.00%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 1.169 billion yuan,a year-on-year decrease of 5.89%; during the reporting period,Changan Automobile's total non-recurring gains and losses were 1.663 billion yuan,of which government subsidies included in the current gains and losses were 1.471 billion yuan.Sales volume is the main reason for the increase in operating income.In the first half of the year,Changan Automobile's cumulative sales volume was 1.334 million vehicles,a year-on-year increase of 9.7%,setting a new semi-annual sales record in the past seven years.Among them,the sales volume of self-owned brand new energy vehicles was 299,000 units,a year-on-year increase of 69.9%; the overseas sales volume of self-owned brands was 203,000 units,a year-on-year increase of 74.9%; however,high sales volume drove revenue growth,but profits fell sharply by 63.00%.Changan Automobile said that this was mainly due to the acquisition of Deep Blue Automobile in the first quarter of 2023,which confirmed a non-recurring profit and loss of 5.021 billion yuan.After excluding the impact,Changan Automobile's non-net profit in the first half of the year fell by 5.89% year-on-year.At the same time,although sales have increased,it is not as profitable as before.In the first half of the year,Changan Automobile's gross profit margin was 13.8%,a decrease of 2.54 percentage points from the same period last year.Some analysts pointed out that the decline in gross profit margin was due to the decline in the company's fuel vehicle share and the loss of new energy vehicle brands in the context of industry price wars.At present,Changan Automobile's main new energy brands include Deep Blue Automobile and Avita Technology,but the financial performance of these two companies is still mixed.The sales revenue of Deep Blue Automobile and Avita has increased significantly,and the losses have narrowed,but they are still in a loss state,which means that Deep Blue Automobile and Avita still need to rely on the parent company for "blood transfusion".The financial report shows that in the first half of 2024,Deep Blue Automobile's revenue was 13.981 billion yuan and its net loss was 739 million yuan,a decrease of 320 million yuan from the same period; Avita's revenue was 6.152 billion yuan and its net loss was 1.395 billion yuan,a decrease of 360 million yuan from the same period.Changan said that Deep Blue Automobile's profit loss decreased year-on-year due to the improvement of product structure and the promotion of cost reduction and efficiency improvement; Avita benefited from the gradual enrichment of product lines and the improvement of product benefits,and its profit loss decreased year-on-year.Data shows that Deep Blue Automobile sold 71,000 vehicles in the first half of the year,a year-on-year increase of 73.6%.Deng Chenghao,general manager of Deep Blue Auto,said during the 2024 Chengdu Auto Show that if Deep Blue Auto sells more than 30,000 vehicles per month,it can achieve profitability.At present,Deep Blue relies on the support of Changan and operates in a "light asset" form in both factories and channels.90% of Deep Blue dealerships have achieved profitability.As for Avita Auto,although its market size is not as large as Deep Blue Auto,it delivered 21,000 vehicles in the first half of the year,which is still doubled compared with the same period.Recently,Avita decided to enter the extended-range hybrid market and expand its sales volume through the two power layouts of pure electric + hybrid.At the same time,Avita spent 11.5 billion yuan to acquire 10% of the equity of Huawei Yinwang Company.This move will strengthen the connection between Avita and Huawei,and use the latter's technical awareness in the minds of consumers to enhance brand awareness and brand sales.According to Changan Automobile's plan,Changan's new energy sales target in 2024 is 750,000 vehicles,and the annual targets of Changan Qiyuan,Deep Blue Auto and Avita are 250,000,280,000 and 90,000 vehicles respectively.Judging from the known sales volume,the sales target completion rate of the above brands was less than 40% by the end of August,and the sales pressure was huge.To this end,Changan Automobile will continue to focus on the new energy vehicle market in the second half of the year,and will launch a number of new and modified models such as Qiyuan E07,Deep Blue S05,Deep Blue L07,Avita 07,and the fourth-generation CS75PLUS.In terms of joint venture brands,Changan Ford sold 111,600 vehicles in the first half of the year,a year-on-year increase of 13.36%,while Changan Mazda sold 36,800 vehicles,a year-on-year increase of 14.44%.Although the joint venture brand is no longer the "profit cow" of Changan Automobile,Changan Ford still contributed 1.821 billion yuan in profits to Changan Automobile,a year-on-year increase of 127.86%,and still brought 619 million yuan in investment income to Changan Automobile.It is worth mentioning that not long ago,Changan Automobile announced a personnel change.Mr.Chen Wei,executive vice president and general legal counsel of Changan Automobile,no longer served as executive vice president and general legal counsel due to job changes,and no longer held any position in the company.