AutoBeta(AutoBeta.net)05/21 Report--

On the afternoon of May 20, SAIC held its annual general meeting of shareholders in 2021. SAIC pointed out that although the chip shortage this year has improved compared with last year, it is still in a state of tight supply on the whole. At a time when the epidemic is repeated and the supply chain is still unstable, various auto companies are still sparing no effort to grab chips, strengthen resource reserves, speed up multi-point layout, and step up efforts to promote the domestic replacement of vehicle specification-level chips. In addition, SAIC stressed that SAIC's annual sales target of 6 million vehicles this year remains unchanged, and plans to launch dozens of new energy models in the next few years.

According to the data, Shanghai Automotive Group Co., Ltd. is the largest automobile group in China, which was established on April 16, 1984. It owns joint venture brands SAIC Volkswagen, SAIC General Motors, SAIC GM Wuling and independent brands SAIC Chase, SAIC passenger cars (including SAIC Roewe / Shangqi Mingjue), Feifan Automobile, Zhiji Automobile and so on.

According to the 2021 financial report released by SAIC, SAIC achieved total operating income of 779.85 billion yuan in 2021, an increase of 5.1% over the same period last year, and the net profit belonging to shareholders of listed companies was 24.53 billion yuan, up 20.1% from the same period last year. Net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 18.58 billion yuan, up 4.7% from the same period last year. According to public data, the net profit of SAIC from 2018 to 2020 was 36.01 billion yuan, 25.6 billion yuan and 20.43 billion yuan, respectively, showing a downward trend for three consecutive years. The net profit of SAIC in 2021 was 24.53 billion yuan, an increase of 20.1% over the same period last year, but there is still a big gap compared with 36.01 billion yuan in 2018.

In terms of sales, SAIC had set an annual target of 6.17 million vehicle sales by 2021, but the data showed that SAIC failed to meet its annual target on schedule. According to the data, SAIC's wholesale vehicle sales in 2021 were 5.464 million, down 2.45 per cent from a year earlier, while terminal retail sales were 5.811 million, up 5.5 per cent from a year earlier. Among them, SAIC own-brand vehicle sales were 2.857 million, up 10% from the same period last year, accounting for 52.3% of the total sales; new energy vehicle sales were 733000, up 128.9% from the same period last year; and overseas sales were 697000, up 78.9% from the same period last year.

At the annual general meeting of shareholders in 2021, SAIC said that in the past year, the domestic automobile industry has experienced many serious challenges, including lack of core, epidemic, power cuts and sharp rise in raw material prices, despite many challenges and uncertainties, but SAIC is full of confidence for the next development.

For the next product planning, SAIC plans to launch dozens of new energy models in the next few years. Specific to the car companies, in the independent sector, in addition to the Zhiji L7 model launched not long ago, the high-end brand Zhiji will also launch the luxury intelligent electric SUV product LS7 in the second half of this year, B-class SUV and car products next year, and two products have been planned for 2024-2025. Mid-and high-end brand Feifan will launch the Jizhi high-end pure electric SUV R7 and a B-class flagship car this year, and three new products will be launched from next year. Roewe and MG will launch a number of hybrid products this year, including the new third-generation Roewe RX5 plug-in hybrid and fuel version options, yesterday the Roewe brand also launched a hybrid SUV chinchilla for female consumers, and in terms of pure electric models, Roewe will also launch Roewe iMax8 EV, MG pure electric global model EH32 and pure electric sports car Cyberster. In the joint venture sector, SAIC GM will deliver the Cadillac Lyriq in the middle of this year, Buick and Chevrolet electric cars will also be launched, and SAIC Volkswagen will launch the Volkswagen MEB platform all-electric B-class hatchback.

In terms of sales volume, Chen Hong, chairman of SAIC, said that although factors such as repeated epidemics, tight supply chain and sharp rise in raw material prices will still pose serious challenges to production and operation, the previous target of achieving annual sales of 6 million vehicles in 2022 will remain unchanged. Among them, independent brand sales strive to grow by more than 20 per cent, accounting for more than 50 per cent of total sales; new energy vehicle sales exceed 1.1 million, with a growth rate of more than 50 per cent; and overseas sales strive to exceed 800000 for the whole year, with a growth rate of more than 20 per cent. In addition, SAIC will continue to optimize its sales structure and operation quality, and strive to reach the stage of 3 million new energy vehicles by the end of the 14th five-year Plan (2025).

In fact, at present, the global automobile market is still hit by the shortage of chips and the COVID-19 epidemic, and SAIC's market performance this year is also relatively mediocre. SAIC said that in the first quarter of this year, the local epidemic seriously disrupted the company's production and marketing rhythm. since mid-March, a number of companies affiliated to the company have launched closed-loop operations, especially in mid-early April, with the suspension of supply chain production and the interruption of logistics in Jiangsu, Zhejiang and Shanghai. The company suffered a considerable loss of production. Take SAIC's performance in April as an example. Data show that SAIC's wholesale sales in April were 166600 vehicles, down 40.3% from 419500 in the same period last year. Among them, sales of SAIC-Volkswagen, SAIC-GM and SAIC-GM Wuling all dropped sharply compared with the same period last year, with SAIC-Volkswagen down 72.29% to 30000 vehicles, SAIC-GM down 70.44% to 23800 vehicles, and SAIC-GM Wuling down 43.57% to 76000 vehicles. In addition, SAIC passenger cars fell 65.77 per cent year-on-year to 18519, while SAIC Chase fell 56.02 per cent to 8700. The decline in sales is mainly due to the epidemic and chip supply shortages, but fortunately, the domestic auto industry has shown signs of improvement.

On May 20, the relevant responsible person of the Ministry of Industry and Information Technology said that at present, the domestic automobile industry has shown signs of improvement, and the relevant departments are stepping up efforts to study policy measures to stabilize and expand automobile consumption. According to the latest data, from May 1 to 18, 15 key automobile enterprise groups produced a total of 680000 vehicles, down 32.0% from the same period last year, or nearly 20 percentage points lower than in April. From May 1 to 15, 456000 passenger cars were wholesale nationwide, down 24 percent from the same period last year and an increase of 28 percent over the same period last month. At the same time, Xin Guobin, vice minister of the Ministry of Industry and Information Technology, also stressed that the automobile industry is an important pillar industry of the national economy, with a long industrial chain, wide coverage, and strong drive, although there are signs of improvement in the automobile market at present. however, at present, it is still facing the "two-way pressure" of hindered supply and weakening demand.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat