AutoBeta(AutoBeta.net)08/19 Report--

The growth of luxury brands against the market is a major growth point for the profits of dealer groups. The dealer group "Meidong Automobile", which mainly operates luxury brand 4S stores, saw its profits soar by nearly 50% in 2019. Under the influence of the epidemic in 2020, it will also be able to achieve a sharp rise in profits in the first half of the year.

On Aug. 19, Meidong Motor announced interim results for 2020, with first-half earnings of 8.448 billion yuan, an increase of 23.5% over the same period last year, after-tax profit of 307 million yuan, an increase of 28.5% over the same period last year, and a net interest rate of 3.6%. Profit during the period attributable to equity shareholders increased by about 27.6% to about 301 million yuan.

In the first half of the year, the group's revenue from passenger car sales was about 7.488 billion yuan, an increase of about 24.5% over the same period last year. Luxury brands continue to be the group's core source of sales revenue, accounting for about 84.3% of passenger car sales. Specifically, sales of BMW, Porsche, Lexus and Audi's new passenger cars recorded about 2.978 billion yuan, 1.545 billion yuan, 1.726 billion yuan and 57 million yuan respectively, accounting for 39.8%, 20.6%, 23.1% and 0.8% of the revenue from new passenger car sales, respectively. In terms of sales, the group sold a total of 23691 new passenger cars during the period, up about 7.9 per cent from a year earlier.

Meidong Motor Group currently has 60 4S stores, including 7 Porsche, 24 BMW, 15 Lexus, 12 Toyota, 1 Hyundai and 1 Audi, covering Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu, Anhui and Shandong provinces. The combination of mainstream luxury brands and Japanese brands, which have made money this year, has allowed Meidong Automobile Group to continue to make money.

In 2019, East American Automobile has shown strong viability. Last year, Meidong Motor's total revenue reached 16.21 billion yuan, an increase of 46.5 percent over the same period last year, and its full-year net profit reached 558 million yuan, an increase of 53.4 percent over the same period last year.

Meidong Motor's vision for the future is to maintain a sound management system, adhere to the development strategy with luxury brands and single stores as the core, and develop actively and cautiously to ensure that the group maintains sustainable and high growth in the long run. at the same time achieve a good return on investment.

Since the decline of new car sales in China and the rapid changes in the industry environment, the problems of poorly managed dealer groups have highlighted, further aggravating the structural differentiation. In the past, giant groups have greatly reduced their business, and Zhengtong Group is also in financial difficulties; on the other hand, Zhongsheng Group, Meidong Motor and Yongda Motor, which are operated by mainstream luxury brands, have achieved big profits. In the future, the advantages of operating mainstream luxury brands will be further highlighted.

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