AutoBeta(AutoBeta.net)01/30 Report--

2020 has passed, a number of domestic car companies have released the latest performance forecasts for the past year. According to the forecast of the published annual report, thanks to the implementation of relevant policies to stimulate the market, it recovered rapidly in the second half of the year, but due to the disruption of production and sales caused by the epidemic in the first half of the year, many car companies still suffered substantial losses.

First, let's take a look at Great Wall Motor and Chang'an Automobile. Great Wall Motor released its annual results on January 25, KuaiBao showed that the total revenue of Great Wall Motor in 2020 was 103.283 billion yuan, up 7.35 percent from the same period last year, and the net profit belonging to shareholders of listed companies was 5.392 billion yuan, up 19.90 percent from the same period last year.

The launch of new products is one of the main reasons for the increase in car sales. In 2020, Great Wall launched a number of novel products under different names, including the Haver Dog, Euler good Cat, Euler Black Cat, Tank 300 and other models, as well as the rejuvenation of its products, such as the third generation Harvard H6. According to the data, the cumulative sales of Great Wall cars in 2020 was 1.1116 million, an increase of 4.84% over the same period last year, successfully achieving the set sales target.

Changan Automobile is also profitable. According to the financial forecast, Changan Automobile is expected to achieve a net profit of 28-4 billion yuan in 2020, an increase of 205.79% Murray 251.13% over the same period last year.

According to the results of the first three quarters, the substantial increase in Changan Automobile profits mainly includes the following three projects: 1. Chongqing Changan New Energy Automotive Technology Co., Ltd., a wholly-owned subsidiary, introduced four strategic investors, and the company gave up the priority right to increase capital, increasing 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.

As a result, after deducting the main automobile business, Changan Automobile still lost 26-3.8 billion yuan, but compared with the loss of 4.8 billion yuan in 2019. The sharp decline in losses indirectly reflects its pick-up in the auto business. Data show that Changan Automobile sold 2.0037 million vehicles in 2020, an increase of 13.98% over the same period last year, and its sales performance is better than that in 2019 in both the independent sector and the joint venture sector.

Zhongtai, Lifan, seahorse and BAIC Blue Valley all suffered large losses. The financial report of Zhongtai Automobile shows that the net loss in 2020 is 6 billion yuan to 9 billion yuan, which is less than the net loss of 11.19 billion yuan in 2019. Zhongtai Motors said that under the influence of funds, its production bases are basically in a state of suspension or semi-suspension of production, with small production and sales of major automobile products and low total sales revenue, resulting in large performance losses. At the same time, the automobile business is basically in a state of suspension or semi-suspension of production, and the provision for impairment of assets and provision for bad debts totaled about 35-6.5 billion yuan.

At present, a number of subsidiaries of Zhongtai Automobile have been ruled by the court for bankruptcy reorganization or bankruptcy liquidation, and the parent company Tieniu Group has also been ruled by the court for bankruptcy liquidation on December 24, 2020.

The financial report of Lifan Automobile shows that the net profit belonging to shareholders of listed companies in 2020 is 0.4-80 million yuan. On January 26, Lifan Technology (Group) Co., Ltd. was officially listed, its predecessor is Lifan Industrial (Group) Co., Ltd. The new leadership, new company name, new enterprise LOGO and new products mean that Geely officially joined Lifan, and Lifan restructuring entered a substantive stage. As we all know, Lifan Industries has been struggling on the brink of bankruptcy for some time before November 30, 2020. After Geely moves into Lifan, Lifan may get new development opportunities.

Seahorse Motor expects an annual loss of 900-1.35 billion yuan, compared with a profit of 85 million yuan in the same period last year. Haima said that affected by the epidemic, coupled with the automotive product adjustment in the critical stage, marketing model innovation has not been fully reflected, product market performance did not meet expectations, car production and sales declined compared with the same period last year, resulting in operating performance losses. According to the data, the cumulative sales of Haima Motor in 2020 was 17773, down 39.66 per cent from the same period last year.

In addition, BAIC New Energy, which relies on BAIC, lost 60-6.5 billion yuan in 2020. The net loss of BAIC New Energy in the first three quarters of 2020 is 2.884 billion yuan, and the annual loss is at least 6 billion yuan, which means that BAIC New Energy lost 3 billion yuan in the fourth quarter, which is equivalent to the loss in the first three quarters. As a volume in the fourth quarter, the operation of BAIC New Energy not only did not improve, but continued to deteriorate, which is regrettable.

Generally speaking, with the introduction and landing of various advantages of the government and the rapid recovery of the domestic macro-economy, the head picked up rapidly in the second half of the year, but it is still difficult to offset the losses caused in the first half of the year. As for marginal brands, the epidemic situation is the most direct cause, but it is not the main reason. The sharp decline in profits is absolutely related to the product quality and marketing strategy of the enterprise.

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