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In 2015, Qi Yumin, Chairman of Brilliance, once set a goal: "Before I retire, Brilliance must enter the top 500 in the world." Unfortunately, Brilliance is still far away from the world's top 500, and Qi Yumin will retire...

Today, many media learned that Qi Yumin, the current secretary of the party committee and chairman of Brilliance Automobile Group, is about to retire, and Yan Bingzhe, vice mayor of Shenyang City, will replace Qi Yumin as chairman of Brilliance. In December 2005, Qi Yumin, then vice mayor of Dalian City People's Government, was ordered to take over Brilliance Automobile, which had suffered losses for three consecutive years. So far, Qi Yumin has been in charge of Brilliance for 13 years.

Qi Yumin served as vice mayor of Dalian City and chairman and general manager of Dalian Heavy Industry Lifting Group Co., Ltd. before that. He had more than 20 years of enterprise management experience and government work experience. However, Qi Yumin was still a stranger to the automobile industry before entering Brilliance at that time. In the year when Qi Yumin took over Brilliance, the company had suffered losses for three consecutive years, with accumulated losses reaching 3.2 billion yuan. The factory was almost shut down. Qi Yumin served as chairman of Brilliance. It can be said that he was ordered in the face of danger. Finally, Brilliance Automobile Group turned losses into profits in 2007, with sales revenue exceeding 40 billion yuan, an increase of about 30% year-on-year. In the same year, the sales volume of the whole vehicle exceeded 300,000 vehicles.

Up to now, Qi Yumin has been in charge of Brilliance for 13 years, and Brilliance Group has also gone from the point where the factory has almost stopped production to the scale of more than 200 billion yuan now. However, in these 13 years, Brilliance has not made any gratifying achievements in the core technology of its own brand except for the cooperation with BMW and the successful sales of its Brilliance BMW.

The 2018 annual performance report released by Brilliance China shows that the Group achieved revenue of 4.377 billion yuan, down 17.5% year-on-year; although the revenue declined by double digits, the net profit attributable to shareholders was as high as 5.82 billion yuan, which was also the first time in recent years that profits exceeded revenue, with a year-on-year growth of 33% and a return on investment of 19.7%. BMW is a profit cow for a long time, and there is no doubt that this time is no exception. Brilliance China said in its annual report that "BMW's contribution to the Group's net profit increased by 19.2% from 5.238 billion yuan in 2017 to 6.244 billion yuan in 2018". After careful calculation, excluding BMW Group's contribution of 6.244 billion yuan, Brilliance's other businesses suffered losses of nearly 424 million yuan, which also means that BMW is present and Brilliance can make money lying down.

However, with the lifting of China's restrictions on foreign shares in passenger cars, BMW will increase its stake in Brilliance BMW by 25%, and German BMW will buy part of Brilliance BMW's stake for 3.6 billion euros, raising its shareholding ratio to 75%. After that, Brilliance's revenue is expected to plummet.

In terms of sales volume, thanks to the continued strong consumption in the luxury car market, BMW Brilliance sales increased by 20.6% to 466,182 units in 2018, and the sales volume of domestic 3 Series, 5 Series, X1 Series, 1 Series sedan and 2 Series station wagon were 134,600 units, 146,014 units, 97,418 units, 41,242 units and 8,503 units respectively. In addition, the new X3 has sold 38,405 units since its launch in June 2018.

In terms of independent brands, Brilliance Renault sold 43,000 light passenger and MPV vehicles in 2018, down 29.5% year-on-year. Among them, Sea Lion Light Passenger decreased by 25.5% year-on-year to 38,000 vehicles, Gerais decreased by 36.6% year-on-year to 3,000 vehicles, and Huasong 7 decreased by 73.3% year-on-year to 1,000 vehicles.

Brilliance and BMW joint venture for 15 years, Brilliance independent brand has not achieved much, there have been car insiders criticized that its products presented to people like "East imitation", in the nearly 15 years of joint venture with BMW, still only learned BMW fur. Qi Yumin also responded,"Who has changed technology in China's automobile industry for so many years?" No one trades technology." Qi Yumin said that the core technology is mainly reflected in the engine and intelligence, and for the current Chinese automobile enterprises, the engine has been solved, intelligent, not yet. Qi Yumin believes that the gap between Chinese independent brands and foreign joint venture brands is huge.

If nothing unexpected happens, Qi Yumin and Yan Bingzhe, vice mayor of Shenyang City, will formally complete the handover next Monday. Yan Bingzhe, like Qi Yumin who just took over Brilliance, has not had relevant work experience directly in automobile enterprises before this.

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