AutoBeta(AutoBeta.net)08/30 Report--

In the context of the decline in revenue and profits of a number of car companies, Changan Automobile unexpectedly achieved reverse growth in three ways in the first half of this year.

On August 30, Chongqing Changan Automobile Co., Ltd. officially disclosed its semi-annual performance report for 2020. According to the report, Changan Automobile achieved an operating income of 32.782 billion yuan in the first half of the year, an increase of 9.73 percent over the same period last year, and the net profit belonging to shareholders of listed companies was 2.602 billion yuan, an increase of 216.17 percent over the same period last year, including 216 million yuan in government subsidies.

The reason why Changan Automobile was able to achieve counter-market growth, mainly obtained three non-recurrent profit and loss projects contributed a total of about 5.275 billion yuan: 1. Chongqing Changan New Energy Automotive Technology Co., Ltd., a wholly-owned subsidiary, introduced four strategic investors, the company gave up the priority to increase capital, and increased the net profit belonging to the shareholders of the listed company by about 2.1 billion yuan. 2. 50% of the equity held by Changan Peugeot Citroen Motor Co., Ltd. was transferred to Qianhai Ruizhi to increase the net profit belonging to the shareholders of the listed company of about 1.4 billion yuan; 3. The share price of the Ningde era stock held by the company rose and the net profit attributed to the shareholders of the listed company was about 1.775 billion yuan.

Therefore, after deducting the net profit of non-recurring profit and loss, Changan Automobile actually lost 2.617 billion yuan, only relying on the automobile business Changan Automobile is still in a state of loss.

However, it is undeniable that the performance of Changan Automobile in 2020 was a bit of a surprise. Through the optimization of brands and products, the sales of both Changan independent brands and joint venture brands have increased. Data show that Changan Automobile sold a total of 830992 vehicles in the first half of the year, up 1.33% from 820059 in the same period last year.

Specifically, Changan Ford sold 97448 vehicles in the first half of the year, an increase of 29.65% over the same period last year. Changan Ford's performance in the first half of the year is impressive. After all, not many brands returned to the same level in the first half of last year, let alone achieve double-digit sales growth.

The reason why Changan Ford was able to achieve sales growth is mainly due to the continuous launch of its new brands. According to officials, Ford Ruiji, which went on sale at the end of last year, has become one of the best-selling models under the brand. The new Mondeo, Rui Ji two-wheel drive version and domestic explorers will be launched in the first half of the year, and the domestic focus travel version is also expected to launch in the second half of the year.

Compared with Changan Ford, the performance of Changan Mazda is somewhat indescribable. Changan Mazda sold 56041 vehicles in the first half, down 8.37 per cent from 61161 in the same period last year.

At present, Changan Mazda has four main selling models, namely, Mazda 3 Encela, CX-8, CX-5 and CX-30. Among them, the Mazda CX-30 is the latest product launched in May this year, and it is also highly expected by Mazda, but the sales performance from the CX-30 is very mediocre, with monthly sales basically maintaining about 3000 vehicles. At present, Changan Mazda mainly depends on the volume of Anksella.

Changan independent brand has also achieved growth. In the first half of the year, the cumulative sales of Changan independent brands reached 420403 vehicles, an increase of 6.64% over the same period last year. Changan's independent sales mainly come from the hot sales of Changan Yiyou, CS75 series and UNI-T models, of which 7417 UNI-T went on sale on June 21.

From the perspective of Changan Automobile's corporate strategy, we should abandon the enterprises with persistent poor sales and losses, and speed up the strategic layout and new product launch in the existing enterprises. at present, the sales volume is positive, but from the performance point of view, Changan Automobile is still under pressure.

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