AutoBeta(AutoBeta.net)05/15 Report--

Wuling Motors has been in the forefront of Chinese brand cars in terms of car sales, and its Wuling Hongguang is also known as the well-deserved "national magic car". However, high car sales do not mean more money. According to the May 14 announcement of Wuling Automobile Group Holdings Limited ("Wuling Automobile"), the assessment of the unaudited integrated management accounts for the year ended December 31, 2019, a net loss of about RMB 167 million is expected for the year ended December 31, 2019. Compared with the initial unaudited results announcement, the reported value is 1.145 million yuan.

Wuling said that the significant increase in annual loss was mainly due to increased impairment losses on property, plant and equipment in the engine and related components division and auto parts and other industrial services divisions.

In fact, as early as February this year, Wuling issued a profit warning for 2019. The company expects its net profit in 2019 to fall by more than 80% compared with the same period last year, compared with a net profit of about 125 million yuan in the same period last year. The net profit in 2019 is expected to be less than 25 million yuan. It is expected that the company owner should share the loss, and the company owner should have a profit of 70.763 million yuan in the same period last year.

Wuling Automobile Group Holdings Co., Ltd. is a company listed on the Stock Exchange of Hong Kong Limited. It is invested by Liuzhou Wuling Automobile Co., Ltd. and Junshan Development Co., Ltd., mainly engaged in the manufacture and sales of auto parts, engines and special purpose vehicles.

SAIC GM Wuling Automobile Co., Ltd., which was established in November 2002, is a Sino-foreign joint venture automobile company jointly established by Shanghai Automobile Group Co., Ltd., General Motors (China) Co., Ltd., and Liuzhou Wuling Automobile Co., Ltd., and has won the favor of many consumers by relying on low-cost and durable automobile products.

According to the data, SAIC GM Wuling's cumulative sales fell 19.42% to 1660007 vehicles in 2019, making it the company with the largest brand car sales in China. Judging from the data, Wuling's sales are not very poor, ahead of companies such as Geely and Great Wall Motors, but because of its low positioning and level, Wuling's bicycle profits are also low, resulting in a loss in sales ahead of other car companies.

Wuling's sales have also declined in recent years. SAIC GM Wuling sold 2150018 vehicles in 2017, up 0.93% from the same period last year; SAIC GM Wuling sold 2071551 vehicles in 2018, down 3.65% from the same period last year; and SAIC GM Wuling sold 1660007 vehicles in 2019, down 19.42% from the same period last year. The continued decline in sales has also led to a continued decline in performance. Wuling Motor achieved operating income of 16.124 billion yuan and 15.12 billion yuan in 2017 and 2018 respectively, down 3.3% and 6.2% from the same period last year, and net profits belonging to listed shareholders were 173 million and 70.673 million respectively.

In order to drive sales growth, SAIC GM Wuling continues to promote the brand upward. In April 2019, the new Baojun brand was officially released, announcing that its products would be equipped with intelligent network connection system. Within the following six months, New Baojun successively launched RS-5, RM-5, RC-6 and RS-3 models, covering SUV, MPV and CAR market segments. According to the company's plan, the new Baojun brand and the Wuling brand will continue to make efforts in different segments, among which the new Baojun brand will launch 10 blockbuster new cars that will include 6 new models and 4 modified products, further occupying a more segmented market share.

In addition, Wuling Motor also has the dream of going to the high end. This time, in Wuling's plans for future new cars released overseas, Planning PPT shows off three new models of the Wuling brand, including an SUV, an MPV and a coupe, according to the Wuling brand's new LOGO. One of the MPV models, called Cetus, will be the first global model and is scheduled to be released in 2020.

As the epidemic was brought under control, Wuling sales rebounded with the auto market. SAIC GM Wuling sold 120000 vehicles in April, up 13.5% from a year earlier. SAIC GM Wuling sold a total of 285000 vehicles from January to April, down 46.69% from 534700 in the same period last year.

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