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With the recent disclosure of 2019 financial results by various car companies, due to the impact of two consecutive years of decline in the car market, 2019 still shows a situation of falling more than rising less, and the net profits of most car companies have declined to varying degrees.

According to the 11 car companies that have recently disclosed their 2019 results, more than 80% of the car companies have experienced a year-on-year decline in revenue, of which 7 have seen a decline in net profit, accounting for more than 60%. It can be seen that 2019 is a relatively difficult situation for the entire automobile industry.

Although SAIC, the largest car company in China, has not yet disclosed its financial results last year, its revenue and net profit are undoubtedly still the highest. According to the performance forecast previously released by SAIC, the company's   2019   net profit attributable to shareholders of listed companies is expected to be about   256   billion yuan, a year-on-year decrease of about 28.9%  , ranking first among domestic auto companies in net profit. According to the company's   2019   annual vehicle sales data, a total of 623.8     were sold, a decrease of 11.54% in   compared with the same period last year.

Second only to SAIC in profit, Dongfeng Group and Geely Motor ranked second and third. Among them, according to the company's disclosure report, revenue reached 101.087 billion yuan in 2019, a year-on-year decrease of 3.3%, better than most car companies. But according to Dongfeng Motor, the revenue growth mainly comes from Dongfeng Merchant Automobile Co., Ltd. The passenger car sector, which performed less well than the commercial vehicle sector, sold a total of 2.903 million vehicles, down 3.9 per cent from a year earlier. The decline in revenue in 2019 was mainly due to falling sales of joint ventures DPCA and Renault, while Japanese joint ventures Dongfeng Nissan and Dongfeng Honda recorded record sales.

Even if Geely only ranks third in net profit, Geely's position in the first place is unshakable. According to its 2019 results, revenue was 97.401 billion yuan, 9% year-on-year. At a time when the overall Chinese car market is in the doldrums in 2019, Geely has been able to achieve such a success, which is already quite dazzling among its own brands. For the whole of 2019, Geely sold a total of 1.36 million vehicles (including the Lecker brand), down 9.3% from the same period last year, meeting the adjusted annual sales target.

Earnings also fell 11.77% year-on-year to 3.862 billion yuan, according to brilliance china's 2019 results. However, its net profit was 6.762 billion yuan, an increase of 16.18% over the same period last year, and it became the only car company whose profit was greater than its income. The figure, which is higher than brilliance's overall profit, is another reminder that, excluding the profit share of brilliance BMW, brilliance's other sectors lost 1.064 billion yuan in 2019, a 1.5-fold increase compared with 2018. 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.

Compared with Beijing Automobile, which also depends on luxury brands, the 2019 financial report shows that Beijing Automobile achieved operating income of 174.633 billion yuan in 2019, an increase of 14.95% over the same period last year, the best result since the company listed its Hong Kong shares in 2014. Thanks to the profit cow of Beijing Mercedes-Benz, the revenue of Beijing Mercedes-Benz reached 155.154 billion yuan, an increase of 14.6% over the same period last year. In 2019, the four major business segments of Beijing Automobile (Beijing Brand, Beijing Mercedes-Benz, Beijing Hyundai, Fujian Mercedes-Benz) achieved a total sales of 1.425 million vehicles, down 2.4% from the same period last year.

As another head of independent car company, Great Wall Motor's revenue in 2019 totaled 96.211 billion yuan, down 3.04 percent from the same period last year, while the net profit of shareholders of the company was 4.497 billion yuan, down 13.64 percent from the same period last year. The reason for the decline in performance, Great Wall said it was affected by the weak environment of the car market. In terms of sales, Great Wall sold more than 1.05 million vehicles in the whole year, an increase of 0.69 percent over the same period last year and exceeding one million vehicles for the fourth year in a row.

GAC GROUP, one of the Chinese automobile groups, had an operating income of about 59.234 billion yuan in 2019, a decrease of about 17.17% over the same period last year, while net profit fell 39.3% to 6.618 billion yuan. In terms of sales volume, GAC GROUP sold 2.0622 million vehicles for the whole year, down 3.99% from the same period last year, which is better than the overall performance of the car market. Car sales rank among the top five in the country, and the market share increases by about 0.35% over the same period last year. Thanks to the fact that "Liangtian" has become the main engine driving GAC GROUP's performance.

FAW car has two major passenger car businesses: FAW Pentium and FAW Mazda. Among them, FAW Pentium sold 91000 vehicles in 2019, an increase of 33% over the same period last year, and its net profit increased by 21.20% over the same period last year. FAW Mazda sold 91000 vehicles in 2019, down 16.1% from the same period last year, and net profit fell 82.01% from the same period last year. FAW Mazda has not recovered since 2018, while Pentium bottomed out in 2019.

Although BYD Automobile achieved operating income of 127.739 billion yuan in 2019, down 1.78% from the same period last year, its net profit was only 1.612 billion yuan, down as much as 42.03% from the same period last year, making it the biggest decline among all auto companies. As for the reason for the decline in net profit, BYD said it was mainly due to industry, policy changes and the impact of rising R & D costs in the current period. Due to environmental changes in the new energy industry and a sharp reduction in subsidies in the second half of 2019, BYD's sales fell sharply, with sales of 223000 new energy vehicles for the whole year, down 7.4 per cent from the same period last year.

It is worth noting that in the environment of decline in the performance of many car companies, such as Jianghuai Automobile, Jiangling Motor, and even Haima Motor, which is on the edge, have seen a sharp increase in net profit. In fact, this is due to the fact that the company receives state subsidies and other aspects of revenue.

According to JAC, passenger car sales totaled only 162000 in 2019, down about 17.8% from the same period last year, which will not help it reverse its performance. According to incomplete statistics, from 2014 to 2018, JAC received a total of 8.718 billion yuan in government subsidies, while its net profit during the period was only 2.225 billion yuan. It can be seen that in the case of high subsidies, the loss of JAC is still quite large.

Although the overall auto market fell by 8.2% in 2010, Jiangling's production and sales rose slightly. Of these, 290000 vehicles were sold, with a total sales increase of 1.75% over the same period last year. But in fact, Jiangling's financial results show that without government support, Jiangling will not make a net profit in 2019. Jiangling Motor received 168 million yuan of support funds from Jiangxi Nanchang City, Nanchang Xiaolan Economic Development Zone and Shanxi transition Comprehensive Reform demonstration Zone in December 2019. Jiangling Motor said that the above government support funds are related to revenue and are included in the company's current profit and loss in 2019. The amount of support alone has exceeded Jiangling's annual net profit.

And the seahorse car relies on "real estate speculation" to achieve a turnaround to win is also a familiar thing in the industry. The company's operating income in 2019 was 4.691 billion yuan, down 7.06% from the same period last year; the net profit of shareholders belonging to listed companies was 85 million yuan, an increase of 105.2% over the same period last year. The company's cumulative sales figures in 2019 showed that it was only 29500 vehicles, down 56.41% from a year earlier.

Looking at the latest earnings data from a number of listed car companies, 2019 is bound to be a difficult year. However, automobile groups with continued best-selling luxury brands and Japanese brands can undoubtedly perform better than the industry level, which also reflects that Japanese joint venture brands and luxury brands have more advantages in the current market environment. At the same time, independent brands with core competitiveness are better able to maintain performance than marginal independent car companies, and with the reduction of more subsidies and asset sales, some marginal car companies will also be gradually eliminated.

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