AutoBeta(AutoBeta.net)04/20 Report--

With April has passed more than half the time, the major domestic car companies have announced last year's financial results, and will usher in the latest financial data in the first quarter. However, when there was no optimistic upward trend for the entire automobile market, it was disrupted by a sudden COVID-19 epidemic, so that it began to usher in a sharp setback in 2020.

Although for most car companies, they are still not ready to announce the first quarter, it has been revealed today when the Information Office of the State Council introduced the economic operation of central enterprises in the first quarter of 2020. Aviation, automobile, tourism and other industries were hit hard in the first quarter, and the aviation industry as a whole lost money. Among them, automobile companies were affected by sales terminals and suppliers' difficulties in getting back to work in the first quarter, with sales falling by more than 30% year-on-year and a profit reduction of 10 billion in the first quarter. Especially for car companies in the Dongfeng area of the center of the epidemic, the impact will be a little greater.

In the face of the downward trend of the market since 2020, although most car companies have not been greatly affected by the epidemic in January, sales and production capacity have declined greatly just because of the reduction in Spring Festival working days. According to the automobile production and sales data of the China Automobile Association in January, China's car production and sales in January were 1.767 million and 1.927 million respectively, down 25.4% and 18.7% respectively from the same period last year.

However, with the continued outbreak of the epidemic in February, the entire car market experienced a severe outbreak, making production and sales data once the highest in history, with production and sales falling by 79.8% and 79.1% respectively compared with the same period last year. The market, which was expected to bottom out in March, did not meet expectations, with production and sales still down 44.5% and 43.3% from a year earlier. As a result, production and sales of the automobile market throughout the first quarter are still in a decline of more than 40%, with cumulative production and sales of 3.474 million and 3.672 million vehicles respectively, down 45.2% and 42.4% from the same period last year.

Such a large decline in production and sales figures also reflects that domestic car companies will face a decline in revenue and profits in the first quarter, and even those that can remain unchanged will achieve revenue from other aspects, not in terms of car sales. after all, there are only a few car companies that have achieved sales growth in the first quarter.

According to the reports of several car companies that are the first to issue first-quarter results forecasts, only Changan Automobile has achieved profit growth against the trend. According to the announcement, Changan Automobile is expected to make a net profit of 500 million to 750 million yuan in the first quarter of this year, up 123.85% and 135.78% from the same period last year, but this is not due to the company's car sales, because Changan Automobile is one of the few car companies that made a profit loss in 2019. The cumulative loss reached-2.647 billion yuan, down-488.81% from the same period last year.

The net profit increased significantly compared with the same period last year, mainly due to the improvement of product structure and profitability, while the wholly-owned subsidiary Chongqing Changan New Energy Automotive Technology Co., Ltd. introduced strategic investors, and the company gave up the priority subscription right to increase capital. It is expected that the increase of 2.2 billion yuan will still exceed the loss of 1.4 billion yuan in the first quarter of Changan. According to KuaiBao, production and sales of Changan Automobile, production and sales in the first quarter of this year were 275000 and 303000 respectively, down 36.9% and 32.1% respectively from the same period last year.

According to an announcement issued by Beijing Automobile, the company expects the net profit attributable to equity holders to fall by about 95% as of March 31, 2020 compared with the same period in 2019. The announcement shows that the decline in performance is mainly due to the impact of COVID-19 's epidemic on China's automobile industry as a whole, and also has a greater impact on the group's production and sales. Vehicle sales have declined significantly compared with the same period last year, resulting in a decline in the group's efficiency.

According to Beijing Automobile's financial results for the first quarter of 2019, Beijing Automobile's operating revenue was 46.7 billion yuan, an increase of 17.45 percent over the same period last year. The net profit belonging to the parent company was 1.232 billion yuan, down 22.76% from the same period last year. It has to be said that in 2019, Beijing Automobile is still the only car company with a single-digit decline, slightly better than most car companies. Beijing Mercedes-Benz sold 113000 vehicles in the first quarter of this year, down 18.5% from the same period last year, better than the industry's average of 40.8% year-on-year, according to statistics from the Federation of passengers.

Obviously, no matter how profitable Mercedes-Benz is, Beijing Auto will not be able to resist the attack of COVID-19 's epidemic, let alone other divided car companies.

In addition, Jianghuai Motor released its first-quarter results on the 18th, according to the announcement, which shows that the company expects the net profit attributed to shareholders of listed companies from January to March 2020 to be-356 million yuan, down 650.78% from the same period last year. Its announcement also said: the main business is affected by the epidemic. According to KuaiBao, JAC Motor sold 34000 vehicles in March, down 23.13% from the same period last year, and 83000 in the first quarter of this year, down 35.53% from the same period last year.

Although there are only a few car companies that have issued performance forecasts, the decline in performance is bound to become the "main theme" of the performance of all car companies, whether they have stronger luxury brands or Japanese brands. The first quarter will not be optimistic, after all, in the same "bad" environment, can only highlight who is more resistant to risk.

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