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In 2020, China's car market further fell to the bottom, affected by the COVID-19 epidemic, the performance of all domestic car enterprises declined, loss-making operation has also become a common phenomenon. The news of the spread of the epidemic was announced in January, production and sales activities almost stopped in February, and operations began to resume gradually in March, so China's automobile production and sales fell the largest in history in the first quarter. According to the data of the China Automobile Association, from January to March, China's automobile production and sales completed 3.474 million and 3.672 million respectively, with production and sales falling by 45.2% and 42.4% respectively compared with the same period last year.

According to the results of a number of listed car companies in the first quarter of 2020, a huge decline in revenue and profit has been inevitable, of which Great Wall Motor lost 650 million yuan.

SAIC: net profit fell by more than 80%

SAIC is the largest automobile enterprise in China, and its revenue and profit are in the forefront of the industry. On April 29th, SAIC released its financial report for the first quarter of 2020, which showed that SAIC achieved operating income of 101.249 billion yuan from January to March 2020, down 48.35 percent from the same period last year. The net profit belonging to shareholders of listed companies was 1.121 billion yuan, down 86.42% from the same period last year.

The decline in automobile production and sales is an important reason for the decline in SAIC's net profit. SAIC produced 657400 vehicles in the first quarter, down 56.87% from the same period last year; sales volume was 679000, down 55.71% from the same period last year, and the decline in production and sales exceeded the overall level of automobile production and sales in China.

SAIC-Volkswagen and SAIC-GM, the two main companies, both sold about 180000 vehicles in the first quarter, both of which fell faster than expected. Among them, SAIC-Volkswagen sales fell 61% year-on-year in the first quarter, and SAIC GM fell 58% year-on-year. To this end, SAIC Skoda announced an official price reduction, which further distinguishes its positioning from SAIC-Volkswagen brand to make up for sales.

GAC GROUP: profits fell by 96%

GAC GROUP owns subsidiaries such as GAC MOTOR, Guangzhou Automobile Honda, Guangzhou Automobile Toyota, Guangzhou Automobile Mitsubishi, Guangzhou Automobile Fick and so on. According to the first-quarter report, GAC GROUP's revenue was 10.765 billion yuan, and the net profit attributed to shareholders of listed companies was 118 million yuan, down 95.73 percent from the same period last year.

GAC GROUP's cumulative car sales in the first quarter were 306100, down 38.13% from a year earlier. Among them, GAC-Honda sold 100000 vehicles, down 46% from the same period last year; GAC-Toyota sold 123000 vehicles, down 24.24% from the same period last year; and GAC-Mitsubishi sold 10, 000 vehicles, down 66.7% from the same period last year.

Zeng Qinghong, chairman of GAC GROUP, said that due to the impact of the pneumonia epidemic, the company would lower its forecast for car sales this year from 8 per cent to about 3 per cent, or about 2.12 million vehicles.

BYD: net profit fell 85%

BYD released first-quarter data show that the company's operating income was 19.679 billion yuan, down 35.06% from the same period last year; the net profit belonging to shareholders of listed companies was 113 million yuan, down 84.98% from the same period last year.

BYD said that the epidemic and macroeconomic downturn had a greater impact on the overall market demand of the automotive industry, and the company's sales of new energy vehicles declined significantly compared with the same period last year. From January to March, BYD sold 22192 new energy vehicles, down 70 per cent from a year earlier.

Great Wall Motor: loss of 650 million yuan

Great Wall Motor is one of the top three independent brands, with annual sales exceeding one million for four consecutive years. According to the first quarter report in 2020, the operating income of Great Wall Motor reached 12.38 billion yuan, down 43.94 percent from the same period last year, while the net profit belonging to shareholders of listed companies was-650 million yuan, down 184.08 percent from the same period last year.

With regard to the decline in operating income and net profit, Great Wall explained in the report that the change in operating income was mainly due to a decrease in sales in the reporting period, with cumulative sales of 150000 vehicles from January to March this year, down 47.04% from the same period last year. The change in net profit belonging to the shareholders of the parent company is mainly due to the impact of the COVID-19 epidemic, the decrease in group production and sales compared with the same period last year, and the decline in the exchange rate of the rouble. the outstanding foreign currency liabilities of overseas subsidiaries are caused by the exchange loss caused by the spot exchange rate on the balance sheet date.

According to the report, the research and development cost of Great Wall in the first quarter was 610 million yuan, up 43.49 percent over the same period last year. Sales expenses decreased to about 440 million yuan, down 58 percent from the same period last year. Great Wall said it was due to a reduction in freight and advertising expenses during the reporting period.

Zhongtai Automobile: loss of 417 million yuan

Zhongtai Motor, which is in trouble, has suffered a huge loss of 9.294 billion yuan in 2019. According to the first-quarter results report, Zhongtai Motor achieved revenue of 209 million yuan, down 94.71% from the same period last year, while the net profit belonging to shareholders of listed companies lost 417 million yuan, down 494.10% from the same period last year.

The company said the decline in net profit was mainly due to the impact of falling sales. Previous news also showed that Jin Zheyong, chairman of Zhongtai Automobile Co., Ltd., was restricted from high consumption due to a dispute over the sale and purchase contract.

Jianghuai Automobile: loss of 356 million yuan

According to the first quarterly report released by Jianghuai Motors, Jianghuai Motor achieved an operating income of 9.12 billion yuan, down 37.68 percent from the same period last year. The net profit belonging to shareholders of listed companies was a loss of 356 million yuan.

In terms of sales, Jianghuai car sales in the first quarter of 2020 were 83300 vehicles, down 35.53% from the same period last year. Among them, the cumulative sales of passenger cars and commercial vehicles were 9577 and 24491 respectively.

Seahorse car: loss of nearly 100 million

The first quarterly report in 2020 showed that the operating income of Haima Motor in the first quarter was about 442 million yuan, down 37.85 percent from the same period last year. The net profit loss belonging to shareholders of listed companies was 99.1864 million yuan, compared with a net loss of 43.98 million yuan in the same period last year.

In terms of sales, the cumulative sales of seahorse cars in the first quarter of this year was 2591, down 49.12% from the same period last year; except for SUV products, other types of models are out of production.

Since 2017, Haima's sales in the market have been declining, and the company has lost money year after year. Last year, Haima made a profit by selling the company's real estate.

Lifan: loss of 197 million yuan

Due to the problems of product quality and enterprise strategy, Lifan Automobile has had a difficult time in recent years. According to the first quarter report, Lifan achieved revenue of 560 million yuan in the first quarter, down 74.88% from the same period last year. Its net loss attributed to shareholders of listed companies was 197 million yuan, down 103.06% from the same period last year. Last year, Lifan lost 4.68 billion yuan.

In terms of sales, Lifan sold a total of 326 traditional passenger cars in the first quarter, down 97.85% from the same period last year, and 37 new energy vehicles in the first quarter, down 94.6% from the same period last year.

Changan Automobile makes a profit

Changan Motor, which lost 2.65 billion yuan last year, made a profit this year. In the first quarter of 2020, Changan Automobile achieved a total operating income of 11.564 billion yuan, down 27.8 percent from the same period last year, and realized a net profit of 631 million yuan, compared with a loss of 2.096 billion yuan in the same period last year. However, Changan Automobile still lost 1.79 billion yuan in net profit after deducting non-recurring profit and loss in the first quarter.

Among the non-recurrent profit and loss items, the government subsidized 57.4 million yuan, while the wholly-owned subsidiary Chongqing Changan New Energy Automobile Technology Co., Ltd. introduced strategic investors, and Changan Automobile made a profit of 2.084 billion yuan after giving up control.

Conclusion: the cold winter of the car market continues, and the epidemic situation makes the environment of the industry worse. Only in 2020, Changan PSA and Dongfeng Renault joint venture brands have completed delisting, a number of independent enterprises also have operational difficulties, accelerating the automobile industry reshuffle, but also accelerate the automobile industry integration and merger and reorganization.

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