AutoBeta(AutoBeta.net)10/31 Report--

Jianghuai Automobile officially released the performance report of the third quarter of 2019. The report shows that Jianghuai Automobile realized 37.19 billion yuan in the first three quarters of this year, up 2.4% year-on-year compared with 36.33 billion yuan in the same period last year; the net profit attributable to shareholders of listed companies was 120 million yuan, up 154.3% year-on-year compared with 49 million yuan in the same period last year;

Jianghuai Automobile previously said in the forecast that the main reason for the substantial increase in net profit in the first three quarters was that the company actively adjusted its product structure and strictly strengthened cost control, thus improving the profitability of its main business.

Although profits have soared, sales have declined. In the first three quarters of this year, Jianghuai Automobile accumulated sales of 320,800 vehicles, down 11.27% year-on-year. Among them, SUV sales gradually picked up, in September this year achieved a year-on-year growth of 56.85% to 9121 vehicles, the first three quarters accumulated sales of 70897 vehicles, a year-on-year decline of 2.92%;MPV models in the first three quarters accumulated sales of 28593 vehicles, a year-on-year decline of 37.58%; car models in the first three quarters accumulated sales of 27747 vehicles, a year-on-year decline of 17.36%; In addition, Jianghuai automobile pure electric vehicles accumulated sales of 49028 vehicles in the first three quarters, an increase of 29.82% year-on-year.

On September 28, Jianghuai Volkswagen's first pure electric SUV-Sihao E20X was officially launched. The new car has two versions: the voice version and the extraordinary version. The price is 128,000 yuan and 138,000 yuan respectively. The comprehensive range of the Ministry of Industry and Information Technology is 402km.

After the first model of JAC Volkswagen is launched, the cost of promotion and marketing will be further increased. However, Jianghuai Volkswagen began to lay out offline outlets four years ago, but only 13 dealers have been recruited at present. Is Jianghuai's brand so weak?

The net profit of Jianghuai Automobile rose sharply in the first three quarters. In addition to adjusting the product structure and controlling costs of the company, it also had a certain relationship with the compensation fund of the government.

On September 18, Jianghuai Automobile issued an announcement saying that due to the planning and construction requirements of Hefei Metro Line 5, the government collected real estate under the name of Jianghuai Automobile, and Jianghuai Automobile received compensation funds of 211 million yuan. After the transaction, Jianghuai Automobile expects that the net profit of 2019 will increase by about 200 million yuan, exceeding the net profit level of 125 million yuan in the first half of Jianghuai.

From the financial report released by Jianghuai Automobile in the first half of the year, we can see that the net profit attributable to shareholders of listed companies in the first half of the year was 125 million yuan, while the net profit in the third quarter was reduced to 122 million yuan, and the net profit was reduced. It is expected that Jianghuai Automobile emission fraud has a certain relationship.

In July this year, Jianghuai Automobile was fined 170 million yuan by Beijing City Ecological Environment Bureau for falsifying its truck emissions.

In recent years, the performance of Jianghuai Automobile has continued to decline, and the situation is not optimistic. In 2017, Jianghuai Automobile realized a net profit of 432 million yuan belonging to shareholders of listed companies, with a year-on-year decline of 62.8%; in 2018, it realized a net profit loss of 786 million yuan belonging to shareholders of listed companies, with a year-on-year decline of 282.0%.

In addition, among the government subsidies included in the current profit and loss in the third quarter, Jianghuai Automobile mentioned that it received 185 million yuan of government subsidies in the third quarter of this year and 463 million yuan of government subsidies in the first three quarters of this year. According to statistics, from 2014 to 2018, Jianghuai Automobile received 8.718 billion yuan of government subsidies, while its profit was only 2.225 billion yuan.

For Jianghuai Automobile, relying on government subsidies is not the way, because if it does not have good profits, but relies on government subsidies to obtain profit growth, it is obvious that with the increasingly severe automobile market, Jianghuai Automobile is difficult to have real development.

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