AutoBeta(AutoBeta.net)03/26 Report--

On March 25, Jiangling released its 2019 performance report, which showed that Jiangling achieved revenue of 29.174 billion yuan in 2019, up 3.27 percent from 28.249 billion yuan in 2018, and net profit belonging to listed companies of 148 million yuan, up 60.96 percent from 92 million yuan in 2018. Basic earnings per share were 0.17 yuan, compared with 0.11 yuan in the same period last year.

According to the sales data released by Jiangling Motor on January 4, the cumulative sales in 2019 was 290058, up 1.75% from 285066 in the same period, of which Ford SUV sales were 50375, up 783.93% from the same period last year; Yusheng SUV sales were 1551, down 77.50% from the same period last year. From the sales point of view, in addition to the Ford brand, Yusheng brand and its heavy trucks, buses, pickups and so on have declined to varying degrees. Therefore, the reason why Jiangling Motor sales growth, thanks to the Ford brand SUV sales growth.

It is worth mentioning that the increase in sales volume is not the main reason for the increase in profits of Jiangling Motors. Through the financial results disclosed by Jiangling Motors, it can be found that in the first three quarters of 2019, Jiangling Motor reached 20.408 billion yuan, an increase of 1.08 percent over the same period last year; the net profit belonging to listed companies was 158 million yuan, down 27.93 percent from the same period last year. In other words, Jiangling made a turnaround in the fourth quarter. As for the reasons for profit growth, Jiangling said that during the reporting period, the company is committed to improving product quality, promoting new product research and development, controlling operating costs, and improving production efficiency. At the same time, it launched a series of sales strategies to actively deal with market risks. The main reasons for the increase in profits are the increase in sales volume and the improvement of profitability brought about by the company's active measures to reduce costs and increase efficiency.

Through the report, it can be found that among the non-recurrent profit and loss items, Jiangling Motor received a total of 467 million yuan in government subsidies in 2019, and the government financial subsidies caused the net profit of Jiangling Motor to be owned by listed companies to increase by 60.96% compared with the same period last year. However, the net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses fell by 10.93% compared with the same period last year.

Jiangling Motor is the abbreviation of Jiangling Automobile Co., Ltd., and it is also a car brand of the company. The company developed from Jiangxi Automobile Factory, which was established in 1968. In 1993, Jiangling Motor became the first automobile company to be listed in Jiangxi Province, and focused on the light commercial vehicle market. After the bottleneck of commercial vehicles, Jiangling Motor will focus on the passenger car market.

In 1995, Jiangling Motor introduced Ford Motor of the United States. After Ford bought Jiangling Motor for US $40 million to issue additional B shares, it accounted for 20% of the total share capital. After the introduction of Ford, Jiangling Motor began to market Ford-branded commercial vehicles. In 1997, Jiangling / Ford successfully launched China's first car jointly developed by China and foreign countries-Quanshun. In 2002, Jiangling and Ford jointly established Jiangling shares and officially launched the Yusheng brand SUV. At present, Jiangling Motor adopts the strategy of "simultaneous development of merchants and passengers".

In 2020, Jiangling plans to sell 331000 vehicles, an increase of 14% over the same period last year, and revenue of 32 billion yuan, an increase of 10% over the same period last year. However, affected by the epidemic, Jiangling's sales fell sharply, with cumulative sales of 19926 units from January to February this year, down 29.60 percent from the same period last year. Jiangling said that due to the impact of the epidemic, car sales will decline significantly in the first quarter of this year. In addition, new energy vehicles as the main car-hailing models, the epidemic will also lead to a sharp decline in the demand for new energy vehicles in a period of time.

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