AutoBeta(AutoBeta.net)03/28 Report--

According to the 2019 results report released by brilliance China on March 27th, the net profit attributable to shareholders of the company in 2019 was 6.762 billion yuan, an increase of 16.18% over the same period last year. Among them, brilliance BMW's net profit in 2019 was 7.626 billion yuan, an increase of 22.1% over the same period last year. However, brilliance China's earnings and gross margin showed a downward trend. Of this total, revenue fell 11.77% year-on-year to 3.862 billion yuan, and gross profit fell 74.04% to 74 million yuan.

Brilliance China also said the drop in earnings was mainly due to lower sales of light passenger cars, MPV and auto parts during the year. The volume of light buses and MPV mainly comes from the joint venture brilliance Renault. Due to market competition and the implementation of a number of new regulations affecting the group's light bus and MPV sales, Huachen Renault sold 40200 vehicles in 2019, a decline of 6.5 per cent over the same period.

Brilliance China saw a proportional increase in net profit in 2019, and the performance and sales growth of the joint venture brilliance BMW became the "savior" of the car company. According to the data, the net profit and sales volume of brilliance BMW in 2019 were 7.626 billion yuan and 545900 vehicles respectively, up 22.1% and 17.1% respectively from the same period last year. Brilliance China said the BMW X3 was the main reason for the rise in brilliance BMW sales.

In terms of specific model sales, the BMW 5-Series is the most sold model, with cumulative sales of 163500 vehicles in 2019, an increase of 12.0% over the same period last year. BMW X3 is a model with a large growth rate, with cumulative sales of 121600 vehicles in 2019, an increase of 216.6% over the same period last year. BMW 2-Series became a drag on BMW brilliance, with cumulative sales of only 3680 vehicles in 2019, down 56.7% from the same period last year.

It is worth noting that excluding the net profit of brilliance BMW, brilliance China posted a net profit loss of 1.064 billion yuan in 2019. It can be said that it would be very difficult for brilliance China to survive without the joint venture brilliance BMW.

Brilliance China also mentioned future plans, with the COVID-19 epidemic under effective control, brilliance BMW plant has completed the resumption of production. Brilliance's plan for a new car in 2020 has not been greatly affected. According to the Security Group's plan, 17 products will be launched in the Chinese market in 2020, and the modified BMW 5-Series and the first pure electric iX3 will be launched in the second half of the year.

Another joint venture company, Huachen Renault, will consolidate its market share of medium-sized vans this year and enter the heavy van market, and will launch heavy and medium van products in the next 2-3 years.

Compared with brilliance BMW and Huachen Renault's future plans, brilliance China's own brands Chinese brands are at a standstill. It is understood that brilliance was founded in 2002 and has been developed for 17 years, but when it comes to brilliance, I think more of the BMW brand than the Chinese brand. Sales showed that brilliance sold only 48200 vehicles in 2019, down 52.9 per cent from 102400 in 2018. At present, brilliance has only three models on sale, and the interior of the new car is not new due to problems involving old and powertrain. Although it has a "BMW engine" as a marketing gimmick, it is still difficult to resist the continuous decline in sales, and the brand has almost lost its influence. Brilliance's 2020 plan was not mentioned in its 2020 earnings report.

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