AutoBeta(AutoBeta.net)10/28 Report--

On the evening of October 27th, Beijing Auto officially released its results for the first three quarters of 2020. During the reporting period, the company achieved 134.43 billion yuan in operating income, down 2.97 percent from the same period last year, and the net profit of shareholders belonging to listed companies was 1.721 billion yuan, down 56.00 percent from the same period last year.

Judging from the performance distribution of Beijing Automobile, Beijing Mercedes-Benz is the largest source of profit for Beijing Automobile. Beijing Auto's equity performance lost 312 million euros (2.464 billion yuan) in the first three quarters of 2020, compared with a profit of 29 million euros in the same period last year, according to the announcement of financial information disclosed by Beijing Auto and Beijing Mercedes-Benz (which owns 9.6% and 49.0%). Beijing Mercedes-Benz reported equity results of 949 million euros (7.494 billion yuan) in the first three quarters, compared with a profit of 1 billion euros in the same period last year.

In the first three quarters, Beijing Mercedes-Benz sold 443813 vehicles, up 4.4% from the same period last year, Beijing Hyundai sold 302816 vehicles, down 32.9% from the same period last year, and Beijing cars increased 2.9% to 52604, according to the Federation of passengers.

Although the performance of Beijing Mercedes-Benz has declined due to the influence of the market and the epidemic, the continued hot sales of the Mercedes-Benz brand still contribute most of the profits to Beijing Automobile. In recent years, the Chinese market has become Mercedes-Benz's largest single market in the world, and thanks to a rebound in demand in the Chinese car market, Mercedes-Benz's performance in the first three quarters was slightly lower than last year's level but still exceeded expectations. With the intensification of the global trade situation, the Mercedes-Benz brand will continue to focus on growth in China, which is expected to remain Mercedes-Benz's largest growth market in the next decade.

Beijing Hyundai, also a joint venture brand, is in the doldrums. The Chinese market is one of the most important automobile markets of Hyundai, and its performance in the domestic market has improved, but it is still not optimistic. According to the FIFA data, Beijing Hyundai ranks last in the top 15 automakers in terms of sales, and the decline is also the highest in the top 15. Some people in the industry said that the modern brand lacks a clear brand positioning, and Beijing Hyundai urgently needs to build on the brand.

The market performance of Beijing independent passenger car sector is also relatively weak, unable to achieve self-hematopoiesis. Financial information shows that the Beijing brand lost 312 million euros (2.464 billion yuan) in equity performance in the first three quarters. Last October, Beijing Automotive integrated its own brands, combining BAIC's new energy and BAIC's own traditional fuel vehicle segment into one to launch the BEIJING brand, while the Saab brand was strategically abandoned.

On October 27, Beijing Automotive officially announced that the board of directors decided to appoint Jiang Deyi as chairman, while Xu Heyi no longer served as chairman because of his age. Xu Heyi joined BAIC in 2002. During his 18-year career, he led the establishment of two joint ventures between Beijing Hyundai and Beijing Mercedes-Benz, of which Beijing Mercedes-Benz contributed nearly 90% of the revenue to Beijing Automobile.

The official appointment of the new leader does not know what kind of development it will bring to Beijing Automobile. In terms of overall market performance, Beijing Automobile still relies on the strong output of Mercedes-Benz brand to maintain its overall source of profit, while Hyundai brand and Beijing brand are still showing a sluggish state of development. this will also be one of the problems that need to be solved urgently after the new leader takes power.

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