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The new disinfectant wholesale business of Xilai Automobile has been commented by netizens as "filling household use".

2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)04/05 Report--

Affected by the new crown pneumonia epidemic, the main "anti-epidemic" equipment such as masks, protective clothing and disinfection products around the world remains the most scarce materials at present. In order to increase material production in this field, many automobile enterprises have crossed the border one after another.

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According to the enterprise information, Shanghai NIO Automobile Sales Service Co., Ltd. has undergone industrial and commercial changes recently, adding food business, hygiene articles, labor protection articles and wholesale of disinfectants within its business scope.

Shanghai NIO Automobile Sales Service Co., Ltd., a subsidiary of NIO, was established in March 2017 with a registered capital of 500 million yuan. The legal representative is Qin Lihong, co-founder of NIO Automobile, and is wholly owned by NIO USER ENTERPRISE LIMITED. It is reported that the company has a number of foreign investment enterprises, including Shanghai NIO Automobile User Service Co., Ltd., Beijing NIO Automobile Sales Service Co., Ltd., etc.

In fact, Wei Lai's new "anti-epidemic" substance management is not a precedent, before this, many enterprises have joined the war epidemic army. According to public information, from February 1 to March 30,2020, more than 28,000 enterprises nationwide have added relevant businesses such as "masks, forehead temperature guns, disinfectants, protective clothing and medical devices" to their business scope based on the change information of industrial and commercial registration. Among them, automobile enterprises have Guangzhou Automobile Group, SAIC GM Wuling, BYD and other companies in February this year have changed production masks, medical protective clothing, disinfectant and other businesses.

It can be seen that in the face of emergencies, the response of some automobile enterprises is also very rapid, but compared with the current domestic hidden information has been basically controlled, Wei Lai just added this aspect of business obviously some slow. As a result, many websites said: "Isn't it a little late to think of 'filling the home' now?"

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At present, the sales of domestic automobile enterprises have been seriously affected by the epidemic, resulting in the impact of China's automobile market, which has been declining for two consecutive years. China's auto sales fell by an unprecedented 80 per cent, with only 310,000 vehicles sold in February, falling back to 2005 levels, according to figures released by the China Automobile Association. At the same time, due to the severe epidemic situation in China, medical substances such as masks and disinfectants have become the most scarce substances. If the production is changed, it will not only alleviate the shortage of domestic substances, but also make profits for automobile enterprises through "sideline" income, helping enterprises to achieve a balance. For this reason, part of the automobile enterprises have been timely transferred to production.

In the more severe new energy automobile market, although NIO Automobile has achieved an increase in sales volume, according to its published fourth quarter and full-year financial results for 2019, its operating income in the fourth quarter was 2.85 billion yuan, compared with 3.436 billion yuan in the same period last year, down 17.1% year-on-year, and its revenue is still less than the previous period. The net profit loss for the whole year reached 11.3 billion yuan, up 17.2% year-on-year compared with 9.6 billion yuan in 2018. For NIO Automobile, which still has no hematopoietic ability, every penny will affect the future development of NIO Automobile. In the face of the current epidemic, wholesale "anti-epidemic" substances will undoubtedly help NIO achieve partial profitability.

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Although the current domestic epidemic situation has been effectively controlled, the use of masks is still large, and overseas areas are still in a very short supply. According to the business scope of NIO, its business includes import and export, etc. Therefore, NIO Automobile, relying on its overseas advantages, may be able to obtain certain orders for its mask wholesale in overseas areas to help it realize part of the profits in this respect.

According to NIO released its February delivery data show. In February this year, NIO brand delivered 707 vehicles as a whole, down 12.8% year-on-year and 55.8% month-on-month.

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