Ankai Auto reports profitability but cautions on continued losses

Anhui Ankai Automobile (SZSE:000868) reported a net profit of CNY 8,392,034.77 for 2024, reversing a loss of CNY 169,894,656.23 in the previous year. Despite this positive result, the company’s accumulated deficit remains substantial at CNY 1,469,390,294.24, exceeding one-third of its share capital, and requiring shareholder approval for its handling. To address these ongoing losses, Ankai plans to focus on enhancing product quality, controlling costs, adjusting its structure, and accelerating its transformation, and has secured a CNY 200 million line of credit, in form of a entrusted loan to help alleviate further financial constraints. The financial statements and internal controls are assessed as sound as per the external audit. To ensure continued compliance, management confirms they will continue to adhere with the Shenzhen Stock Exchange regulations.