On April 29, Xiamen Jinlong Automobile Group Co., Ltd. released its first quarterly report for 2017. The report shows that Jinlong Motor’s operating revenue for the first quarter of 2017 was 2.32 billion yuan, a year-on-year drop of 62.01%. Among them, the net profit attributable to the shareholders of the listed company was RMB 53 million, a 194.54% year-on-year drop.

Situation description

Suzhou Jinlong Company had irregularities in applying for 2015 central government subsidy funds for new energy vehicles, involving 519.21 million yuan in subsidies from the central government, and the Ministry of Finance decided to recoup the central government's pre-arranged funds of 519.21 million yuan to Suzhou Jinlong Co., Ltd., according to the amount of non-compliance issues. 50% of the administrative penalty was 259.65 million yuan fine, and at the same time from 2016, the central government financial subsidies for Suzhou Golden Dragon were disqualified. The “Decision of Processing” also required Suzhou Golden Dragon to seriously rectify the problems it identified, and after the completion of the rectification and acceptance by the four ministries and commissions, it could restore Suzhou Central's financial subsidies.