AutoBeta(AutoBeta.net)04/15 Report--

On April 14, Haima issued a forecast for the first quarter of 2020, showing that the company expects the net profit loss attributed to shareholders of listed companies from January to March 2020 to be 85 million-125 million yuan, down 93.27% to 184.22% compared with the same period last year. For the reason for the sharp decline in net profit, Haima said that "affected by the COVID-19 epidemic, the company's car production and sales declined year-on-year."

According to the production and sales announcement issued by Haima Motors on April 7, the cumulative production and sales of Haima Motors in the first quarter were 1469 and 2591 respectively, down 59.94% and 49.12% respectively from the same period last year. It is worth mentioning that the above production and sales are from SUV models, MPV production and sales are 0, did not disclose the details of car production and sales.

Although Haima turned into a profit in 2019, car sales are still the biggest problem for its development. According to the financial report data released by Haima Automobile, the operating income of Haima Automobile in 2019 is 4.69 billion yuan, and the net profit belonging to shareholders of listed companies is 85 million yuan. The turnaround of Haima does not come from car sales, but through the transfer of shares to related parties and the disposal of idle property. However, the operation also attracted the attention of the Shenzhen Stock Exchange, which issued a letter of inquiry about its future profitability.

Some analysts said that at present, Haima has hovered on the edge of the market, it is no longer possible for car sales to rise sharply, coupled with the outbreak of this year's epidemic has increased the reshuffle of the auto industry. Smaller carmakers such as Haima, which are less resilient to the epidemic, are likely to be delisted if the government fails to give greater support to Haima or find a chance to preserve its shell.

Although Haima Motors is hovering on the edge of the market, the government does not forget to subsidize it. The subsidiaries of Haima Motor recently received a total of 9687485.60 yuan in various government subsidies, which are expected to increase the company's total profits in the first quarter of 2020, Haima announced on April 8. The subsidiaries of Haima Motor recently received a total of 17832900.00 yuan in government subsidies, which are expected to increase the company's total profits in the second quarter of 2020, Haima Motor announced on April 12.

According to the plan of Haima Motor, in the next five years, Haima will continue to invest heavily in new product development and technology upgrading, and formulate to adhere to the market orientation and implement the new marketing strategy. In the second quarter of this year, Haima will launch three models, namely, the 2020 Haima 8s, Haima 7X and Haima 8P, covering the traditional fuel vehicles and hybrid models of SUV and MPV. It remains to be seen whether the new products will regain their market competitiveness, but it seems that Haima Motors is "willing but powerless" in the context of increased competition from other mainstream products.

Seahorse has had a difficult year through the transfer of assets and the sale of real estate, but from another point of view, apart from the transfer of assets and the sale of real estate, what else can be done to turn losses into profits? In the context of the current downturn in the car market, coupled with the test of the auto industry by the epidemic, it is not feasible for Haima to rely on outside forces to survive. "it takes good blacksmiths to make good steel." if seahorse cars cannot form self-hematopoiesis, it is estimated that delisting will not be far away.

Can Haima, which turns losses into profits by selling houses and transferring assets, rely on car sales to make it through 2020?

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