[Auto] China's Dong Feng Motor warns of a 60% drop in profits during the first half of 2020

[ITS OZX-]

The share price of the Chinese automaker Dongfeng Motor Group recorded, today, Monday, its biggest decline in about a month after the company, located in Wuhan, China, announced that its profits during the first half of this year would decrease by 60% from the same period last year.

Dong Feng, a partner of the Japanese car company Nissan Motor in China, said that its activities were severely affected by the emerging corona virus pandemic during the first quarter of this year, and that it had resumed its activities after nearly a month of resuming work in the rest of the auto companies in China following the stoppage that the industry witnessed as part. One of the measures to combat the emerging corona virus in China.

And Bloomberg News indicated that the city of Wuhan, from which the Corona pandemic originated, has suffered from comprehensive lockdown measures that lasted about 80 days. The Chinese economy is still trying to recover from the repercussions of the pandemic.

Dong Feng said in a statement directed to the Hong Kong Stock Exchange that its sales during the second quarter of this year "exceeded the average sales in the market, which cushioned the decline in its results during the first half" of this year as a whole.

The company is scheduled to announce the results of the first half of this year on August 28, and the company had achieved net profits of 8.5 billion yuan ($ 1.2 billion) during the first half of last year.

The decline in Dongfeng shares reached 2.9% this afternoon on the Hong Kong Stock Exchange, after it had reached 4.6% earlier in the trading session.