Perspective car company's annual report: revenue, net profit double down to mainstream

Perspective car company's annual report: revenue, net profit double down to mainstream performance, turn around loss but not the main business

China-Singapore Jingwei client, April 15th (Fu Yumei intern Lin Wansi) 2019 car company transcripts were released, and the China-Singapore Jingwei reporter's statistics found that both revenue and net profit have almost become major mainstream car companies the trend of. A small number of those who turned against the trend and turned into surplus, either because they sold assets or received huge subsidies, are not the main business income ... After combing, it is learned that the weak market and the decline in sales are the general explanations for car companies ’unsatisfactory performance throughout the year. .

Head car companies are hit one after another

In 2019, the performance of a number of leading car companies is not very satisfactory. Among the top three autonomous companies, the revenue and net profit of Geely Automobile and Great Wall Motor both declined. Geely Automobile achieved a net profit of 8.19 billion yuan for the whole year, a year-on-year decrease of 35%, and Great Wall Motor achieved a net profit of 4.526 billion yuan, a year-on-year decrease of 13.74%.

Although Changan Automobile has not released its 2019 performance report, according to its previous full-year performance forecast, its net profit loss is about 2.4 billion to 2.9 billion yuan, a year-on-year decline of 452.6% to 526%, which will become a loss among the top three The biggest car company. In this regard, Changan Auto stated that the overall performance decline was caused by the decline in sales.

However, under the background of the continuous decline of the automobile market, Geely and Great Wall are still continuously increasing their investment in R & D. The data shows that in 2019, the R & D investment of Great Wall Motor and Geely Automobile were 2.716 billion yuan and 3.067 billion yuan, an increase of 55.8% and 59% year-on-year.

For SAIC, GAC, Dongfeng, BAIC and other auto groups, net profit in 2019 is also showing a downward trend. On the evening of April 13, SAIC Group, the car company with the highest A stock market value, disclosed its 2019 annual report. Operating income was 826.53 billion yuan, a year-on-year decrease of 6.88%; net profit attributable to shareholders of listed companies was 25.603 billion yuan, a year-on-year decrease of 28.90%. This is also the first time in the past 10 years that SAIC has experienced a decline in net profit.

SAIC said in its annual report that the main reason for the decline in net profit was the company ’s overall vehicle sales decreased this year, while the superposition of the transition between the National V and National VI models intensified the supply and demand contradiction, and the domestic new energy vehicle subsidies retreated.

The most severely affected by the retreat of new energy subsidies may be BYD. According to data, the total sales of BYD vehicles in 2019 were 461,400 units, a year-on-year decrease of 11.39%. Among them, the total sales of new energy vehicles were 229,500 units, a decrease of 7.39% year-on-year, giving way to the global new energy vehicle sales champion. At the same time, BYD's annual net profit plunged 42%.

For 2020, BYD believes that due to the epidemic, the global economic downside risks increase and the prospects are more uncertain.

Photo of the new Jingwei Fu Yumei in the picture

Turning losses into profits, but not because of the main business

Although the overall environment is not ideal, there are still some car companies that have played against the trend and achieved performance last year. But this part of the car companies to the performance of "blood transfusion" is not the main business.

According to JAC's 2019 annual report, the company's operating income in 2019 was 47.286 billion yuan, a year-on-year decrease of 5.6%; the net profit attributable to shareholders of listed companies was 106 million yuan, a loss of 786 million yuan in the same period of the previous year, and turning losses into profits.

However, JAC deducted non-net profit for the year was negative 978 million yuan, and sales fell 8.1%. Why does the company "reverse losses"? According to the financial report, JAC's current non-recurring gains and losses totaled about 1.084 billion yuan, of which government subsidies included in the current profit and loss were about 1.117 billion yuan.

Another car company that turned losses and net profit soared was Haima Automobile, which was on the verge of delisting last year. In the case of a depressed main business, in order to achieve protection, Haima Automobile has sold 344 units of its real estate in 2019, and also sold two of its subsidiaries. The asset sales amount exceeds 1 billion yuan.

Joint venture brand performance "has joy and worry"

Among some car companies with outstanding financial data, one reason that cannot be ignored is that the joint venture brand transfused the group as a "profit cow".

Statistics show that BAIC Group's revenue in 2019 was 174.633 billion yuan, a year-on-year increase of 15%. Beijing Automobile has two core businesses: Beijing Brand and Beijing Benz. Among them, Beijing Benz's sales in 2019 reached 567,000, an increase of 17% year-on-year, revenue was 155.154 billion yuan, an increase of 14.58% year-on-year, and revenue accounted for 88% of Beijing Auto's total revenue.

Similarly, in 2019, although Brilliance China's operating income was only 3.862 billion yuan, but benefited from the excellent performance of the joint venture, its net profit was as high as 6.077 billion yuan, an increase of 14.97% year-on-year.

Data show that BMW Brilliance's 2019 net profit was 7.626 billion yuan, a year-on-year increase of 22.1%. Its 2019 sales reached 546,000 units, a year-on-year increase of 17.1%. Excluding the net profit of BMW Brilliance, the net profit of Brilliance China's other businesses in 2019 will reach 1.064 billion yuan.

However, there are also those that are "draggled" by joint venture brands. Dongfeng Group said that the decrease in revenue in 2019 was mainly due to the decline in sales revenue of the joint venture company Shenlong Automobile. Data show that the cumulative sales of Shenlong Automobiles were 113,600 units last year, a year-on-year decrease of 55.17%. It is understood that after reaching the peak of 700,000 units sold in 2015, Shenlong Automobile began to decline linearly.

In addition, Dongfeng Renault, another joint venture brand of Dongfeng Group, has officially reorganized recently. In 2019, Dongfeng Renault only sold 18,281 vehicles, a year-on-year decrease of 63.52%. On April 14th, Dongfeng Group announced that in view of the decline in the domestic auto market and Dongfeng Renault's operating conditions, Renault plans to transfer its 50% stake in Dongfeng Renault to the company, and Dongfeng Renault will stop Renault brand-related business activities.

Great Wall and GAC took the lead to lower their 2020 targets

After a relatively weak 2019, affected by the epidemic, the domestic auto market ushered in a more difficult 2020 spring. Therefore, some car companies have lowered their previously set 2020 performance and sales targets.

On March 14, a document issued by Great Wall Motor entitled "Great Wall Motor's 2020 Restricted Stock and Stock Option Incentive Plan (a draft revision)" proposed the first grant of restricted stock and stock options Comments on the performance evaluation objectives to be revised. It shows that the sales target of Great Wall Motors in 2020 will be reduced from the previous 1.11 million units to 1.02 million units, and the net profit will also be reduced from the previous 4.7 billion yuan to 4.05 billion yuan. The adjusted figures are lower than in 2019.

On March 16, Zeng Qinghong, chairman of Guangzhou Automobile Group, also announced through a web conference that due to the impact of the new coronary pneumonia epidemic, the production of Guangzhou Automobile Group was stagnant in February. about. In other words, after this reduction, GAC Group's 2020 sales target was adjusted from 2.22 million to 2.12 million.

The domestic auto market has already handed over the first quarter of 2020. According to the latest data released by the China Association of Automobile Manufacturers, domestic automobile production and sales in the first quarter of this year were 3.474 million and 3.672 million, respectively, down 45.2% and 42.4% year-on-year. The China Automobile Association expects that the Chinese auto market will recover significantly in the second quarter, but it is difficult to recover to the level of the same period last year.

In order to boost the automobile consumer market, the central and local governments have intensively introduced incentive policies. According to the incomplete statistics of China-Singapore Jingwei client on April 10, there are already Sichuan, Shanxi, Beijing, Shanghai, Tianjin, Chongqing, Guangdong, Zhejiang, Hubei, Hunan, Henan, Hebei, Liaoning, Hainan, Guizhou, Jilin, Xinjiang, Yunnan, Guangxi, Harbin, Nanchang, and other 21 provinces and cities have adopted multiple measures to promote automobile consumption, mainly through subsidies, trade-in, and optimization of purchase restrictions.

It is worth noting that many car companies have also announced in the 2019 financial report this year's new car release plan, or may help boost performance again. As Geely said, in addition to the already-listed Geely ICON in 2020, Geely will launch a number of models such as Hao Yue, Preface, Geometry C, etc .; Brilliance China said that BMW Brilliance 5 Series minor changes and the new Ix3 and other new 2020 vehicles will be It will be available in the second half of the year according to the original plan; Haima Automobile also said that it will launch three new products of the 2020 Haima 8S, Haima 7X, and Haima 6P this year. (Sino-Singapore Jingwei app)

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