AutoBeta(AutoBeta.net)03/31 Report--

China's auto market, which has been declining for two years in a row, has led to a decline in the performance of many car companies, even Geely, an independent "leading" car company, with profits falling sharply by 35% in 2019. The 2019 annual report released by Haima, a marginal car company, shows that it has turned a loss into a profit, which is the first time the company has made a profit in four years.

On March 31, Haima released its annual report for 2019. According to the report, the company's operating income in 2019 was 4.691 billion yuan, down 7.06 percent from the same period last year; the net profit of shareholders belonging to listed companies was 85 million yuan, an increase of 105.2 percent over the same period last year; compared with losses of 1.637 billion yuan and 994 million yuan respectively in the previous two years, there was an obvious change.

According to the report, Haima attributed the turnaround to a number of plans put forward by the company at the beginning of last year, including "optimizing resource allocation, invigorating existing assets, disposing of idle assets, and increasing the company's cash flow." And on July 8, 2019, the company officially launched a new product, Haima 8S, in Zhengzhou base, and opened the Internet direct sales model. The new products and new marketing model have been initially recognized by the market and consumers.

The report also mentioned that in the seahorse automobile manufacturing sector in 2019, revenue reached 4.266 billion yuan, accounting for 90.04% of the cumulative income of 4.691 billion yuan, of which vehicle revenue reached 3.998 billion yuan, accounting for 85.23%. However, according to the cumulative sales data of Haima Motor in 2019, it was only 29500, down 56.41% from the same period last year, while the annual output was only 29000, down 52.06% from the same period last year. Production and sales are all achieved the expected target, even if Haima also has OEM for Xiaopeng, but according to Xiaopeng's sales of only 16000 in 2019, it will not help Haima to turn losses into profits.

With the accelerated reshuffle of the industry, Haima, which has been marginalized, is facing a sharp decline in sales, the shares of listed companies have been implemented "delisting risk warning", and Haima shares have been changed to "* ST seahorse", which means that Haima can not make a profit in 2019 and will face the risk of delisting.

To this end, Haima made a series of measures to sell idle property and transfer shares in its subsidiaries in 2019 to seek success in shell preservation. Obviously, judging from the current performance, Haima has turned around successfully.

Since April last year, Haima plans to sell its 401 suite, plus an R & D center. In 2019, a total of 342 idle properties were disposed of, with an income of 161 million yuan excluding value-added tax and 135 million yuan after deducting disposal costs. Its 100% stake in Shanghai Haima Automobile Research and Development Co., Ltd. was transferred to Ruizhi Industrial Co., Ltd., and the final transaction confirmed that the capital reserve was 11 million yuan and the investment income was 543 million yuan.

In addition, all the shares held by Henan Haima property Services Co., Ltd. are transferred to Qingfeng Real Estate Co., Ltd. (a wholly-owned subsidiary of the controlling shareholder). The final transaction confirms that the capital is 2.02 million yuan in reserve and the investment income is 123 million yuan.

In addition to the sale of "family property", the profit and loss on the disposal of Haima Motor's non-current assets in 2019 was 800 million yuan, and the government subsidy included in the company's current profit and loss was 96 million yuan.

Although Haima stressed that a successful turnaround will help Haima focus on its main business and optimize its cash flow, reflecting its firm determination to develop its main industry and do a good job in its automobile industry. However, according to Qixinbao data, Haima Industrial Park Construction Co., Ltd. was officially established on March 12, with a registered capital of 50 million yuan, with Lu Guogang, vice chairman of Haima Automobile Co., Ltd., as the legal representative. The business scope of Haima Industrial Park includes housing construction; urban landscaping projects; architectural decoration and decoration of hotels and catering places; architectural decoration and decoration of office buildings and office buildings.

This also shows that the seahorse will expand the layout of the real estate sector. According to public information, Haima Investment Group owns not only the automobile industry, but also two major industries, financial control and home ownership, with total assets of more than 40 billion yuan. After all, compared with the seahorse real estate owned by the Haima Group, the performance of Haima is very unsatisfactory.

According to the Haima Automobile Plan, in the next five years, Haima will continue to invest heavily in new product development and technology upgrading, and has formulated a market-oriented and implemented a new marketing strategy. This year, it will launch 2020 new products of Haima 8s, Haima 7X and Haima 6P, covering the traditional power and plug-in hybrid models of SUV and MPV. However, judging from the current situation of the hippocampus, there seems to be a sense of "inability to pick up".

Therefore, some people in the industry believe that the annual sales of seahorse cars have fallen from 210000 in 2016 to less than 30,000 in 2019, with an alarming rate of decline, and in the face of the current grim environment, it is still difficult to predict the future if seahorses invest more money in the new energy market. Compared with the booming Haima auto finance and real estate business, it is also in the interests of shareholders to choose to withdraw from the auto market.

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