Reportedly, Zhongtong Bus, one of leading automakers of commercial vehicles in China sold off stocks of 290 thousand RMB and 300 thousand respectively on June 15 and June 23, vibrating regulations.
Governmental policy, which has encouraged development of commercial vehicles, has led to considerable increase in sales of the company. Sales of alternative energy bus were 2,300 units in 2014, with a year-on-year rise of 44%, which increased to 10,498 units in2015, with a year-on-year rise of 356%. Based on its sales structure, Zhongtong Bus has developed to be a automaker producing green CVs.
However, governmental subsidizes on developing alternative energy CVs have turned out to be a large part of revenue of the company. Zhongtong has been granted subsidizes of more than 1.2 billion RMB in 2015. Then, China’s government has implemented harder regulations, making it more difficult for Zhongtong to get subsidizes for its operation in 2016.
As a result, the company has decided to sell off its stocks for turnover of capital.
Target revenue of the company has been 7.1 billion RMB this year. And it may invest on research and development of two modes of electric vehicles. There may be a great challenge for Zhongtong Bus to meet its target.
