(Yicai Global) April 17 -- Chinese busmaker Ankai Automobile has reported its biggest asset loss since going public in 1997, partly caused by bad loans. 

Ankai's net profit attributed to the parent was a loss of CNY893 million (USD133.1 million), mainly caused by an asset loss of CNY348 million, the Anhui province-based firm's earnings report shows. Its asset loss included bad debt of CNY325 million as well as CNY23 million caused by a drop in the value of inventory.

The firm's operating income fell 42 percent to CNY3.1 billion (USD462.3 million) in 2018, the lowest since 2010.

New projects made slow progress as the firm relied on old clients. The value of sales to the top five customers was CNY1.3 billion, accounting for 41 percent of the total. Some 24 percent of the total revenue came from related party transactions with those links. In comparison, Zhengzhou-based Yutong Bus' five biggest clients made up 10 percent of the total revenue and Nanjing-based Jinlong Bus Manufacturing's similar tally was 19 percent while related party transactions with those partners were zero for both. 

Ankai's borrowing costs were rising. The firm's banker's acceptances with higher credit ratings decreased 75 percent from 2017 to CNY26.9 million at the end of 2018. Meanwhile, the value of its commercial acceptance bills, which involve a higher risk of defaults, more than doubled to CNY51.6 million. 

The company finished a private placement last year. It was supposed to spend the proceeds to invest in a medium-sized high-end public transit vehicle project, product verification, digital management system, and repayment of bank loans. The company paid back bank loans worth CNY50 million, but with the investment of CNY338,000, a fraction of the original plan, the transit project has not started construction yet. 

Ankai's stock price [SHE: 000868] has declined nearly 5 percent to CNY3.6 (US 50 cents) today. 

Editor: Emmi Laine