AutoBeta(AutoBeta.net)03/20 Report--

On March 19, Jianghuai Automobile released its 2019 financial results, showing that its business income reached 47.286 billion yuan in 2019, down 5.60% from the same period last year. The net profit belonging to shareholders of listed companies was 106 million yuan, compared with 2018-786 million. 2019 achieved a turnround.

It seems that it has turned losses into profits, but in fact it is still difficult to escape the status quo of losses. In 2019, the non-recurrent profit and loss of Jianghuai Automobile is mainly concentrated in government subsidies, disposal of illiquid assets and investment income, of which the government subsidy is as high as 1.117 billion yuan, so although the net profit belonging to listed companies is 106 million yuan, however, the net profit loss after deducting non-recurrent profit and loss is as high as 978 million yuan.

In addition, according to the financial results from 2014 to 2019, the net profits of Jianghuai Automobile are 529 million yuan, 858 million yuan, 1.162 billion yuan, 432 million yuan,-768 million yuan and 106 million yuan respectively. At the same time, the government subsidies included in the current profits and losses are 262 million yuan, 348 million yuan, 411 million yuan, 602 million yuan, 1.278 billion yuan and 1.117 billion yuan respectively. Judging from the data, government subsidies have always accounted for a large proportion of JAC's non-recurrent profit and loss.

Jianghuai Automobile is the main business car, and then entered the passenger car market development, although the time to enter is not late, but compared with the Great Wall, Geely and other automobile enterprises, there is still a big gap. Sales figures show that JAC accumulated sales of 421200 vehicles in 2019, down 8.91 per cent from a year earlier. Of these, passenger car sales were 86800, down 6.88% from the same period last year. SUV sales were 37600, down 32.66% from the same period last year; car sales were 37900, down 21.68% from the same period last year; and sales of new energy vehicles were 58000, down 8.87% from the same period last year.

According to this year's plan, Jianghuai Automobile plans to produce and sell 450000 to 500000 vehicles and chassis in 2020, an increase of 6.83% and 18.70% over the same period last year, and is expected to achieve operating income of 50 billion yuan to 55 billion yuan, an increase of 5.57% and 16.13% over the same period last year.

Jianghuai Motors said it is speeding up the adjustment of its product structure and will launch more models that meet the needs of the market. In addition, JAC plans to launch a number of new energy vehicles in 2020, covering compact cars, compact SUV, compact SUV and compact crossover vehicles. New energy vehicles are planned to account for 20 per cent of total sales in 2020 and 30 per cent in 2025.

Government subsidy is the biggest contributor to Jianghuai Motor's ability to turn losses into profits. However, with the decline of subsidies for new energy vehicles, Jianghuai Automobile is under a lot of pressure in the market. The head of Jianghuai Automobile also said frankly that the company will face the risk of declining subsidies for new energy vehicles.

Although Jianghuai Motor is full of confidence, due to the impact of the epidemic, the sales situation of Jianghuai Automobile in the first two months is not optimistic. Sales KuaiBao showed that JAC accumulated sales of 49300 vehicles from January to February, down 42 per cent from a year earlier. Of these, sales were only 11600 in February, down more than 60 per cent from a year earlier.

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