On December 8 and 9, JAC issued successive announcements on land acquisition and storage. The company’s industrial land located in the northeast of the intersection of Danxia Road and qinglongtan road will be acquired and stored by the land acquisition and reserve center of Feixi County, with a total land area of about 400000 square meters (595 mu), and a total of 186000 square meters of above ground buildings will be acquired and stored. < / P > < p > but behind the soaring stock price, JAC’s passenger car business has not performed well for many years, and its main business has been losing money for years, so it has to rely on “other channels” for a long time. Towards the end of the year, JAC, whose main business is hopeless to turn losses around, began to perform the same old technique again. < / P > < p > the prosperity of the domestic automobile industry entered a downward turning point in 2018, while JAC had shown a weak state in 2017. In that year, the company’s operating revenue declined to 49.2 billion yuan after creating a historical peak of 52.5 billion yuan in 2016. The net profit attributable to the parent company fell 63%, and the net profit after deduction was – 93 million yuan. As a result, the main business of car selling began to fall into a loss. < / P > < p > in 2018 and 2019, JAC’s net profit after deducting non-profit was -1.877 billion yuan and -978 billion yuan. However, relying on all kinds of non recurring income, the company’s net profit in the past two years has increased to – 786 million yuan and 106 million yuan respectively, which has also got rid of the fate of St. < / P > < p > in the first three quarters of this year, JAC’s net profit after deduction was – 910 million yuan, compared with – 84 million yuan in the same period of last year, and the loss increased by 10 times. On November 13, the company announced that in order to revitalize idle assets, it plans to transfer the general assembly workshop and painting workshop of the second passenger car factory, involving 763.57 mu of land, 253000 m2 of real estate and structures, 937 sets of equipment and 19638 spare parts. < / P > < p > according to the appraisal, the net book value of the above assets to be transferred is 487 million yuan, the appraisal value is 716 million yuan, the value-added is 229 million yuan, and the value-added rate is 47.13%. < / P > < p > one month later, the company disclosed the announcement of land acquisition and storage again, and planned to transfer the land use right and above ground buildings to Feixi County land acquisition and storage center. After the completion of the acquisition and storage, the company will obtain 880 million yuan in cash, and the net income is expected to reach 640 million yuan. < / P > < p > after more than two years of adjustment, the domestic automobile industry ushered in a recovery this year, and the sales volume of Jianghuai Automobile also increased year on year. However, from the perspective of structure, the weak situation of the company’s passenger cars is still not much improved. < / P > < p > in the first 11 months of this year, JAC has sold 416700 vehicles of various types, with a year-on-year growth of 7.74%. Among them, the sales of passenger cars was 139300, which was about 7% lower than 149700 in the same period of last year. < / P > < p > in addition, from the ratio of gross profit and car sales, we can see that in the first three quarters of 2019 and 2020, for each car sold by JAC, the gross profit was 1186 yuan and 707 yuan respectively, and the trend of gross profit per car was obvious. < / P > < p > there is no improvement in fundamentals, and even a downward trend. However, the stock price has repeatedly reached new highs in this year, with a cumulative increase of more than 100%. Behind this, the participation of Volkswagen undoubtedly played a crucial role. In May this year, the company disclosed that Anhui SASAC, Volkswagen (China) Investment Co., Ltd. and Anhui Jianghuai Automobile Group Holding Co., Ltd. signed a letter of intent for capital increase. On June 11, several parties signed the relevant agreement. < / P > < p > after the record of Anhui Provincial Development and Reform Commission and the approval of the anti-monopoly examination department, the change of industrial and commercial registration was completed on December 2, and all parties have contributed according to the agreement. Among them, Volkswagen China invested 2.383 billion yuan to Jiangqi holding, and Volkswagen China invested 1.610 billion yuan to Volkswagen (Anhui) Co., Ltd. < / P > < p > after the completion of the transaction, Volkswagen China investment became the shareholder of JAC holding, holding 50% of the equity of JAC holding, while the state owned assets supervision and Administration Commission of Anhui Province held 50% of the equity of JAC holding and still controlled JAC holding. VW China investment holds 75% equity of Volkswagen (Anhui) Co., Ltd. and JAC holds 25% equity of Volkswagen (Anhui) Co., Ltd. < / P > < p > in the field of traditional fuel vehicles, Volkswagen has already established joint ventures such as FAW Volkswagen and SAIC Volkswagen. Obviously, this cooperation with JAC and GuoXuan high tech (31.300, 0.45, 1.46%) in Anhui aims to seek breakthroughs in the field of new energy vehicles. However, in the first 11 months of this year, JAC only sold 42548 pure electric passenger vehicles, a year-on-year decrease of 22.87%, far behind its peers. Its performance in the field of new energy vehicles, which is the most concerned market and has the highest valuation level, is not satisfactory. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. 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