Jiangling Motors Corp, in which Ford Motor Co has a 20 per cent stake, says profit plunged 96.7 per cent to 3.94 million yuan (about HK$3.65 million) last year from 119.88 million yuan in 1994.
The company, which produces light trucks with Japan's Isuzu Motors, has been hurt by the downturn in China's motor sector, suffering slower sales and fierce competition under the tight credit regime.
Turnover fell 1 per cent to 1.95 billion yuan from 1.97 billion yuan.
Earnings per share fell to one fen a share from 23 fen previously.
The results complied with international accounting standards.
Jiangling, based in Nanchang, Jiangxi province, blamed the earnings drop on the sluggish motor sector, prompting it to cut prices to boost sales and enhance market share. Stiff competition meant profits were cut and margins eroded.