AutoBeta(AutoBeta.net)04/16 Report--

Beijing Automotive announced on the Hong Kong Stock Exchange on April 16 that it expects net profit to fall by about 95% in the first quarter of 2020 compared with the same period a year earlier. Beijing Automobile said that the sharp decline in performance was mainly due to the impact of the COVID-19 epidemic on China's automobile industry as a whole, its production and sales were also greatly affected, and vehicle sales fell sharply compared with the same period last year, resulting in a decline in efficiency.

Beijing Automobile said that due to the uncertainty in the development of the COVID-19 epidemic, it could not be ruled out whether the epidemic would have a further impact on the company's operating performance. However, the domestic epidemic situation has taken a positive turn for the better, and industry authorities have also issued a number of policies conducive to automobile consumption. at present, the operation of its production bases has returned to the normal level, which can effectively alleviate the pressure of declining benefits. therefore, it holds cautious positive expectations for medium-and long-term business development.

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 performance distribution of Beijing Automobile, Beijing Mercedes-Benz is the largest source of profit for Beijing Automobile. According to the 2019 performance report, Beijing Automobile's operating income increased by 14.95% to 174.633 billion yuan compared with the same period last year, the net profit of shareholders of listed companies decreased by 7.83% to 4.083 billion yuan, and gross profit increased by 1.3% to 37.487 billion yuan. Among them, Beijing Mercedes-Benz operating revenue increased 14.6% year-on-year to 155.154 billion yuan, accounting for 88% of Beijing Mercedes-Benz's annual revenue.

Beijing Mercedes-Benz sold 113046 vehicles from January to March, down 18.5 per cent from 138731 in 2019, according to the Federation of passengers. Against the backdrop of the overall decline in the car market, Beijing Mercedes-Benz outperformed the market average of 40% lower than the same period last year.

With the exception of Beijing Automobile, the first-quarter results of other car companies are lower than those of the same period. BYD expects first-quarter net profit to fall by 79.99% Mel 93.33% year-on-year, while Haima Motors, which turned around last year, expects first-quarter net profit to fall 93.27% Mo 184.22% year-on-year.

Affected by the epidemic and the market downturn and other factors, the sales of major car companies showed a decline in the first quarter of this year, resulting in a sharp decline in performance in the first quarter is also expected. However, with the gradual implementation of relevant national policies, the successive introduction of policies by local governments to promote automobile consumption, and the efforts of automobile industry enterprises, the automobile industry will speed up its recovery in the second half of the year, but it will still be affected by uncertain factors in the progress of overseas epidemic prevention and control. Retail sales in the passenger car market rebounded relatively fast in the first two weeks of April (1-12), according to the Federation of passengers. Retail sales averaged 27700 vehicles a day in the first two weeks, down 12% from a year earlier.

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