AutoBeta(AutoBeta.net)06/04 Report--

On June 3, *ST hippocampus issued an announcement saying that in order to optimize and revitalize stock assets, it will sell 145 residential buildings located in Haikou City by hanging out in the second-hand housing market. According to the announcement, most of the real estate sold by Haima Automobile is 27㎡, with a net value of 1120.98 yuan, all of which are for residential use, with a total net value of 175,000 yuan.

This isn't the first time a horse has sold a house. On April 22,2019, *ST Haima announced that it planned to sell 36 idle properties in Shanghai City and 81 idle properties in Haikou City; on May 15,2019, *ST Haima announced again that it would list 284 properties in Haikou City for sale.

On July 6,2019, *ST Haima transferred its 39% stake in Henan Haima Property Service Co., Ltd. to Qingfeng Real Estate at a price of 116 million yuan; on September 26,2019, *ST Haima transferred its 100% equity in Shanghai Haima R & D Co., Ltd. to Ruizhishang Industry at a transfer price of 806 million yuan.

Through the transfer of two subsidiaries, the sale of idle properties and government subsidies, *ST Haima successfully turned around in 2019. On March 31, *ST Hippocampus announced its annual report for 2019, showing that the operating income realized in 2019 was 4.691 billion yuan, down 7.06% year-on-year; the net profit attributable to shareholders of listed companies was 85 million yuan, with a year-on-year growth of 105.2%, with losses of 1.637 billion yuan and 994 million yuan respectively compared with the previous two years. The profit performance in 2019 can be described as outstanding.

However, although the performance achieved a turnaround, but the sales situation is not objective. In 2019, the cumulative sales volume of *ST seahorse was only 29456 vehicles, down 56.41% year-on-year; in addition, in 2019, the net profit attributable to shareholders of listed companies excluding non-recurring profits and losses was-730 million yuan.

Entering 2020, the overall downward trend of the automobile market is superimposed on the impact of the epidemic situation, and the seahorse automobile that cannot make ends meet faces huge losses. Financial report shows, The first quarter *ST hippocampus realized operating income of about 442 million yuan, Year-on-year decline 37.85%; Attributed to listed company shareholders net profit loss 99.1864 million yuan, The same period last year for net loss 43.98 million yuan. In terms of sales volume, the cumulative sales volume of *ST Hippocampus from January to April was 39671 vehicles, down 48.76% year-on-year; except SUV products, other categories of models were discontinued.

Of course, even if the business capacity is insufficient, the government still gives some help. Since 2020, Haima Automobile has received a total of 37.9881 million yuan of various subsidies, including subsidies for enterprise job stability, patent grants authorized by Zhengzhou Economic Development Zone in 2018, awards for new energy vehicles, subsidies for new product research and development, etc.

However, the above subsidies are simply a drop in the bucket for Haima Automobile. Under the huge losses, Haima decided to sell the real estate again. As for how much income and how much capital can be recovered from the 145 sets of real estate to be sold this time, *ST Haima did not mention anything.

*ST Hippocampus has had a tough year by transferring assets and selling properties, but from another perspective, *ST Hippocampus has no other way to turn losses into profits besides transferring assets and selling properties? Of course, seahorse cars are not impossible to survive. As the only enterprise with new energy vehicle production qualification in Hainan Province, under the policy of promoting new energy vehicles in Hainan Province, if hippocampus can seize the opportunity, it is still possible to develop. However, with car sales halving for three consecutive years, there is no sign of a rise in the market for seahorse cars, which can only sell assets by selling houses.

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