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SAIC announced its results for the third quarter of 2021, showing operating income of 181.759 billion yuan, down 13.5% from the same period last year, while net profit belonging to shareholders of listed companies was 7.036 billion yuan, down 14.75% from the same period last year. In the first three quarters, the company's operating income was 538.373 billion yuan, an increase of 11.09% over the same period last year; the net profit belonging to shareholders of listed companies was 20.35 billion yuan, an increase of 22.24% over the same period last year.

According to the interim performance report, SAIC achieved operating income of 356.696 billion yuan in the first half of 2021, an increase of 29.9% over the same period last year, while the net profit belonging to shareholders of listed companies was 13.314 billion yuan, up 58.61% from the same period last year. After deduction, the net profit of shareholders of listed companies was 11.854 billion yuan, an increase of 65.18% over the same period last year. It is not difficult to see that SAIC's performance in the third quarter was not optimistic, with operating revenue shrinking to 11.09 per cent from 29.9 per cent year-on-year growth in the first half and net profit shrinking from 65.18 per cent to 22.24 per cent.

SAIC's shrinking revenue and profits are related to sales performance. Data show that SAIC's cumulative sales in the first three quarters were 3619043 vehicles, up 0.16% from a year earlier. According to previous data, SAIC sold 2.297 million vehicles in the first half, up 12.1 per cent from a year earlier.

SAIC Volkswagen and SAIC General Motors are still the profit sources of SAIC, but under the influence of lack of core, the sales performance of the two companies is not very optimistic. SAIC-Volkswagen sold 850437 vehicles in the first three quarters, down 17.54 per cent from a year earlier, according to the data. SAIC GM sold 901906 vehicles, down 5.22% from a year earlier. Although SAIC GM Wuling has accumulated sales of 1051441 vehicles, an increase of 6.74% over the same period last year, the profitability of its products is not very large, so it cannot form the profit support of SAIC Group. By contrast, the performance of independent brands is more eye-catching, of which the cumulative sales of SAIC passenger cars in the first three quarters were 495362, up 22.84 per cent from a year earlier, while SAIC Datong was up 34.81 per cent from a year earlier.

The outstanding performance of independent brands has further strengthened SAIC's high-end upward goal. On the day of the announcement of the results, SAIC announced that for the rapid development of its own brand of high-end intelligent electric vehicles, the company plans to invest in the establishment of Feifan Automotive Technology Co., Ltd., with a registered capital of 7 billion yuan. Among them, SAIC subscribed 6.65 billion yuan, accounting for 95% of the registered capital; Shanghai Ruwu Automotive Technology Partnership (limited partnership) (employee stock ownership platform) subscribed 350 million yuan, accounting for 5% of the registered capital. It is understood that the original R brand of the passenger car branch will be operated by Feifan Automobile in the way of an independent company. In terms of positioning, R Automobile will focus on the range of 200000 to 400000 yuan of high-end new energy intelligent products in the future, while Zhiji will focus on more than 400000 yuan of products.

At present, SAIC R brand has two models on sale, including the ER6 and the medium-sized SUV MARVEL, which are positioned as compact cars. It is understood that SAIC Group Vice President Yang Xiaodong has publicly said that the R brand sales target this year is about 20,000 vehicles. However, as of September, total R car sales totaled 8759 vehicles, a far cry from the full-year sales target of 20, 000. Perhaps, for SAIC, positioning high-end intelligence is a very simple thing, but how to build high-end through products, how to make consumers recognize high-end, SAIC also needs to consider, after all, in the current market, there is no shortage of high-end brands.

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