Chinese carmakers receive national subsidies totaling RMB 1.29 billion for NEVs

Foton Motor, Ankai Automobile and Zhongtong Bus have received national new energy vehicle subsidies, totaling about 1.29 billion yuan, recently.

Foton Motor, Ankai Automobile and Zhongtong Bus have received national new energy vehicle subsidies, totaling about 1.29 billion yuan, recently.

In November 2020, the Ministry of Finance (MoF) issued a notice on early release of energy saving and emission reduction subsidy funds in 2021 (first batch).

It said it would issue the 2021 energy-saving and emission-reduction subsidy funds in advance, which will be used for the energy-saving and new energy bus operation subsidy funds in 2019, and for the settlements of the new energy vehicle promotion subsidy funds in 2016-2018.

On February 27, Foton Motor (600166) issued an announcement saying that the company received a notice from the China Development Bank on February 25 that it received a new energy vehicle promotion subsidy of RMB 355.59 million transferred by the Beijing Municipal Finance Bureau.

Among them, the new energy vehicle promotion subsidy fund in 2017 was 182.85 million yuan, and those in 2018 was 176.74 million yuan.

The new energy vehicle promotion subsidies received this time will not affect the current profits, and will directly offset the company’s new energy subsidies receivables, which will increase company’s cash flow and reduce occupation of funds.

According to Foton Motor’s production and sales report in February, its sales of new energy vehicles from January to February reached 445 vehicles, a year-on-year increase of 145.86%.

On March 1, *ST Ankai (000868), or Ankai Automobile issued an announcement stating that the company received 97.52 million yuan of subsidies for the promotion of new energy vehicles from Hefei on February 26.

The subsidy funds will directly offset the receivables formed by the company’s sales of new energy buses, improve the company’s cash flow, and have a positive impact on operating results.

On January 28 this year, ST Ankai also received 227.55 million yuan of national new energy vehicle promotion subsidy funds transferred and paid by Hefei City.

According to ST Ankai’s February production and sales report, a total of 514 large, medium and light passenger cars were sold in January and February, an increase of 3.84% year-on-year.

On March 8, Zhongtong Bus (000957) announced that the company has received a total of 600 million yuan in 2016-2018 national new energy vehicle promotion and application subsidy funds transferred from the Liaocheng Finance Bureau in recent days.

This amount will directly offset the company’s accounts receivable and have a positive impact on the company’s cash flow.

According to Zhongtong Bus’s February production and sales report, it sold 974 large, medium, and light passenger cars and logistics vehicles in January and February, a year-on-year decrease of 27.74%.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2021/03/11/chinese-carmakers-receive-national-subsidies-totaling-rmb-1-29-billion-for-nevs/.

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