AutoBeta(AutoBeta.net)07/14 Report--

On July 14, Changan Automobile issued a semi-annual performance forecast for 2022. According to the report, the net profit of Changan Automobile belonging to shareholders of listed companies in the first half of the year was 50-6.2 billion yuan, an increase of 189.14% and 258.54% over the same period last year. After deducting non-recurrent profits and losses, the net profit was 2.5-3.5 billion yuan, an increase of 237.95% and 373.13% over the same period last year.

The auto industry is concerned about the financial results and found that Changan Automobile ended the negative deduction of non-net profit in the previous years in 2021, which means that Changan Automobile can finally make money by selling cars. According to the financial report, the net profit of Changan Automobile in 2021 was 3.552 billion yuan, an increase of 6.87 percent over the same period last year. The non-net profit of home deduction was 1.653 billion yuan, an increase of 150.85% over the same period last year, that is, Changan Automobile can make a profit through its main business. Previously, Changan Automobile deducted non-net profit from 2018 to 2020 lost 3.165 billion yuan, 4.762 billion yuan and 3.25 billion yuan respectively, with a total loss of 11.18 billion yuan over three years.

Changan Automobile said that the sharp increase in net profit in the first half of the year was mainly due to the continuous improvement of the company's brand, the continuous optimization of product structure and the continuous improvement of the profitability of its own brand. Data show that Changan car sales in the first half of 2022 were 1.1258 million, down 6.25% from the same period last year, of which Changan autonomous passenger car sales were 629200, down 4.61% from the same period last year. As for the joint venture brands Changan Ford and Changan Mazda, sales of the former fell 6.90 per cent to 112600 vehicles in the first half from a year earlier, while the latter rose 5.51 per cent to 63700 vehicles.

However, although the size of the independent brand is large, but the profit level is low, it is more dependent on the joint venture brand Changan Ford. According to the annual financial report, Changan Ford's sales in 2021 increased 20.29 percent to 304700 vehicles compared with the same period last year, with an annual net profit of 2.284 billion yuan, accounting for 64.30 percent of Changan's total profit. Of course, the growth of Changan Ford is mainly due to the domestic sales of luxury brand Lincoln, which has sold a total of 88000 vehicles in the past year, although it is still a far cry from its peak. But the addition of luxury models with higher bicycle income has led to a big increase in Changan Ford's profits in 2021. However, Changan Ford, as a mainstream brand, has not been lazy. In addition to the new generation of Mondeo and the medium-term modified focus with a four-cylinder engine, Changan Ford will also launch new explorers and a new generation of sharp world one after another this year. These are Changan Ford's heavyweight products, but compared with the above models, Mondeo belongs to the heavier model of Changan Ford. No matter in terms of price, appearance, interior, power and other factors, Mondeo is like a car born to save the Chinese market. According to the FIFA data, Mondeo sold 18388 vehicles in the first half of the year, making it the highest-selling model of Changan Ford and even the Ford brand, followed by Forrest, with 14751 vehicles, and Ruiji and Ruijie also sold more than 10,000 vehicles.

As for Changan Mazda, although sales rose 5.51 per cent to 63700 vehicles in the first half compared with the same period last year, it has begun to eat its old money. Since the merger of FAW Mazda and Changan Mazda, FAW Mazda's CX-4 and Atez have been suspended. At present, they only rely on Changan Mazda's Onksera, CX-5, CX-8 and CX-30 models, of which Unksera, which has the best performance, has accumulated sales of 37751 vehicles in the first half of the year, followed by CX-5, which has accumulated sales of 10594 vehicles in the first half, while sales of other models are very low. I don't know how much longer Mazda can stay in China.

Compared with joint venture brands, independent brands pay more attention to it. In the field of new energy vehicles, Changan Automobile will cover the low, middle and high-end market, of which the main high-end market is the Avita brand, which is jointly built by Changan, Ningde Times and Huawei, of which Avita 11 is the first model, positioning the medium-sized pure electric SUV. The brand that focuses on the middle and high end of the market is the Deep Blue Brand, which was launched on April 21, led by Changan Automobile and operated by Changan New Energy. The first model, Changan SL03, is built based on the EPA1 platform, with a pre-sale range of 17.98-231800 yuan, which will provide pure electricity, extended range and hydrogen fuel cell power. In addition, Changan Automobile will also make efforts at the low end of the market, with the first model being Changan Lumin waxy corn, competing for minicars such as Wuling Hongguang MINIEV and Chery QQ ice cream.

Changan Automobile is still very ambitious. After all, the company has made a five-or ten-year plan for itself, but under the background of increasingly fierce competition for new energy vehicles in China, it is also worth looking forward to whether Changan New Energy can stand out. In fact, in the period of technological change in the automotive industry, increasing R & D investment has become the consensus of the industry, and then hindsight of Changan Automobile, whether it can achieve its own goals. In the first half of the year, Changan's share price continued to plummet, reaching as low as 6.5 yuan, but since May, with the state and government stimulating the domestic car market, Changan's share price has changed all the way and finally reached an all-time high of 21.4 yuan. to some extent, Changan Automobile is still recognized by the market.

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