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

On March 26, Beijing Automobile announced its 2019 results. During the reporting period, the company achieved operating income of 174.633 billion yuan, an increase of 14.95% over the same period last year. The net profit of shareholders belonging to listed companies was 4.083 billion yuan, down 7.83% from the same period last year. Gross profit was 37.487 billion yuan, up 1.3% from the same period last year.

Beijing Auto said that the increase in operating revenue was mainly due to the increase in revenue of Beijing Mercedes-Benz and Beijing brands, while the decline in net profit was mainly due to Beijing brands and some investment enterprises feeling that the domestic passenger car industry competition intensified, the overall market downturn and other factors led to profit decline.

In 2019, both Beijing Mercedes-Benz and Beijing brands achieved sales growth, which led to the growth of operating income, but the gross profit margin and gross margin declined to varying degrees. Among them, the cumulative sales of Beijing Mercedes-Benz reached 567000 in 2019, an increase of 17% over the same period last year. Against the backdrop of sales growth, Beijing Mercedes-Benz's operating income increased by 14.6% to 155.154 billion yuan in 2019 compared with the same period last year, but its gross profit margin fell from 29.9% in 2018 to 27.5% in 2019, mainly due to an increase in the proportion of sales of models with low gross margins. Sales of Beijing brands rose 6.9% to 167000 vehicles in 2019 compared with the same period last year, and revenue rose 18% to 19.479 billion yuan last year, but gross profit fell to-4.728 billion yuan from-3.516 billion yuan in 2018. This is mainly due to the increase in vehicle sales and the decline of new energy subsidies.

In addition, sales of Beijing Hyundai and Fujian Mercedes-Benz, two other joint ventures of Beijing Automobile, were 663000 and 28000 respectively in 2019, down 16.2 per cent and 1.5 per cent from a year earlier.

According to public data, Beijing Automobile is one of the five major automobile groups in China, mainly engaged in passenger car R & D and manufacturing, spare parts manufacturing, automobile service trade, R & D, education, investment and financing, and so on. among them, the passenger car business is carried out through Beijing Mercedes-Benz, Beijing Hyundai, Fujian Mercedes-Benz and Beijing brands.

Judging from the financial results, Beijing Mercedes-Benz is still the "profit cow" of Beijing Automobile, accounting for 88% of Beijing Automobile's annual operating income in 2019. At present, Beijing Mercedes-Benz is responsible for the production of long wheelbase E-class, C-class, A-class, long wheelbase GLC SUV, GLA SUV, GLB SUV, pure electric EQC and AMG A35L models. The Chinese market has become the largest single market for Daimler Group. Mercedes-Benz plans to launch 18 new cars in 2020. At the same time, it will also implement two exclusive service policies to further strengthen the transparency of service charges.

Beijing brand gross margin decline is not surprising, the current Beijing brand is still in the period of brand adjustment. In 2019, the Beijing brand merged the Saab brand with BAIC New Energy and officially launched the "BEIJING" brand. With the upgrading of the brand, the Beijing brand launched a number of models such as the SUV BEIJING X3, the car BEIJING U7 and EU7 Pure Electric. At present, BAIC New Energy, owned by Beijing Automobile, is at the forefront of domestic new energy vehicle manufacturers, with cumulative sales of 150601 vehicles in 2019, down 4.69% from the same period last year.

Beijing Hyundai has not performed well in China in recent years, of course, in addition to its own reasons, the downturn in the Chinese market has also intensified the pressure on Beijing Hyundai. At present, the models on sale in Beijing Hyundai include the fourth-generation Shengda, the fourth-generation Tusheng, the new Sonata, Festa, Anchino EV and other models. As for Fujian Mercedes-Benz, although its sales fell 1.5% last year compared with the same period last year, it still outperformed the market. Among them, the sales of Mercedes-Benz V-Class and New Wei Ting models performed well in the market.

In response to the outlook for 2020, Beijing Automobile said that it expects the internal and external economic growth trend to slow down, due to Sino-US trade frictions, the COVID-19 epidemic and other macroeconomic uncertainties. Affected by the economic downturn, supply upgrading, demand and other factors, it is expected that China's passenger car market is in a period of cyclical adjustment, and it will take 2-3 years to restore the positive growth trend.

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