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2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >
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AutoBeta(AutoBeta.net)02/03 Report--
On the evening of February 2, the giant group announced its earnings forecast for 2019, which showed that the company is expected to have a net profit of 100 million yuan to 150 million yuan attributable to shareholders of listed companies in 2019, compared with-6.1554102 billion yuan for shareholders of listed companies in the same period of 2018. It is worth noting that the net profit after deducting non-recurrent profit is-4.25 billion yuan to-4.2 billion yuan, while the net profit after deducting non-recurrent profit and loss in the same period last year is-6.8411909 billion yuan.
With regard to the operating situation in 2019, the giant group said that during the reporting period, the shortage of funds led to insufficient vehicle procurement, the reduction in the number of cars sold resulted in a significant reduction in operating income, costs, taxes, additional and sales expenses; in 2018, the gross profit of some brands of the company gradually returned to normal in 2018 due to the rapid recovery of funds and the sale of vehicles at low prices and failing to meet the manufacturer's target for rebate.
As for the reasons for turning losses into profits, the huge Group said in the announcement that the impact of the company's non-recurring profit and loss events on the profits of the year in 2019 was about 4.35 billion yuan, mainly because the company completed the restructuring in 2019.
Giant Group was founded on March 3, 2003, and in 2010, the company was the largest car dealer in China. Statistics show that the giant group once had 1035 outlets across the country, including 834 specialty stores, 134 auto supermarkets and 69 shopping malls.
In Beijing, where the automobile industry is in the doldrums, car sales continue to decline, some car companies have also been marginalized, and upstream and downstream car suppliers have been affected. In such an environment, huge groups are trapped in bankruptcy restructuring and debt crisis.
In May 2019, the giant group borrowed 17 million yuan from Beijing Jidongfeng, which was eventually appealed to the court by Beijing Jidongfeng because it was unable to repay it within the time limit. On September 5, 2019, the Tangshan Intermediate people's Court ruled to accept the company's application for restructuring on the grounds that the company could not repay its due debts and that it might lose its ability to pay off its debts. According to the relevant provisions of the Enterprise bankruptcy Law, if the reorganization of the company fails, the company will be declared bankrupt by the court. In the same month, Shenshang Holdings, Yuanwei assets and National Transport capacity announced that they would form a consortium to become investors in the restructuring intention of a huge group.
After more than three months of restructuring, the giant group has been removed from the delisting risk warning and will be implemented other risk warnings. The company's stock abbreviation has been changed from "* ST huge" to "ST huge".
According to the China Automobile Association, China's automobile production and sales in 2019 were 25.721 million and 25.769 million respectively, down 7.5 per cent and 8.2 per cent year-on-year. As the automobile market remains in the doldrums, the China Automobile Association predicts that the decline in car sales will drop to about 2% in 2020, coupled with the outbreak of the epidemic, it is expected that China's car sales will decline further in 2020.
The current encounter of the huge group is only a microcosm of the automobile market. In the face of the overall downward trend of the automobile market, it is a foregone conclusion for the giant group to turn losses into profits in 2019, but it is still very difficult to achieve the profit target of 700 million yuan in 2020.
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