AutoBeta(AutoBeta.net)02/18 Report--

Wuling Motor recently issued a profit warning for 2019. It is expected that the net profit in 2019 will fall by more than 80% compared with the same period last year, while the net profit in the same period last year is about 125 million yuan. The net profit in 2019 is expected to be less than 25 million yuan, and the company owners are expected to share losses. In the same period last year, the profit attributable to company owners was 70.763 million yuan.

As for the reason for the sharp decline in performance, Wuling said it was mainly due to the depressed market environment in the Chinese market, which led to a sharp decline in revenue from auto parts and other industrial services sectors compared with the same period last year.

According to data, in 2002, Wuling Automobile reached a cooperation with SAIC, General Motors and Liuzhou Wuling Automobile, jointly funded the establishment of a Sino-foreign joint venture company, and rose rapidly by relying on the low-price strategy.

Wuling Automobile is one of the car companies with good sales, and its Wuling Hongguang is called a "magic car" by consumers, but Wuling's sales have been declining in recent years. According to sales data released by SAIC, SAIC GM Wuling sold 2150018 vehicles in 2017, up 0.93% from the same period last year; SAIC GM Wuling sold 2071551 vehicles in 2018, down 3.65% from the same period last year; and SAIC GM Wuling sold 1660007 vehicles in 2019, down 19.42% from a year earlier. Affected by the epidemic, SAIC GM Wuling sold 78240 vehicles in January, down 51.1% from 160000 in the same period last year.

Due to the continued decline in sales, Wuling's performance is not optimistic. From 2017 to 2018, Wuling Motor achieved operating income of 16.124 billion yuan and 15.12 billion yuan respectively, down 3.3% and 6.2% from the same period last year, and the net profit belonging to shareholders of listed companies was 173 million and 70.673 million respectively.

It is worth mentioning that, as a Sino-foreign joint venture, although Wuling Motor's performance in recent years is not ideal, Wuling Automobile still shows strong cohesion in the face of the epidemic. On February 6, SAIC General Motors Wuling announced a joint supplier and self-built production line to transform the production of protective masks. On February 9th, the first batch of 200000 masks produced by SAIC GM Wuling Joint supplier went off the line smoothly.

However, after the epidemic, Wuling still needs to formulate a correct strategy. How to get rid of the company's operating difficulties and how to restore its main business is still an urgent problem to be solved.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat