AutoBeta(AutoBeta.net)08/22 Report--

Guanghui Automobile finally went to delisting!

On August 22, Guanghui Automobile Services Group Co., Ltd. (hereinafter referred to as "Guanghui Automobile") issued an announcement on the termination of the listing and delisting of the company's stocks and convertible bonds. According to the relevant regulations, after the company's shares and convertible bonds are terminated, the two-network companies and delisting companies (hereinafter referred to as "delisting plate") set up and managed by the national small and medium-sized enterprise share transfer system limited liability company relying on the stock transfer system of the original securities company will be listed for transfer.

Guanghui car delisting situation has long been a sign. From June 20 to July 17, Guanghui Motor's daily closing price was less than 1 yuan for 20 consecutive trading days. according to the regulations, Guanghui Motor Company shares and convertible corporate bonds met the conditions for termination of listing. On August 21, the Shanghai Stock Exchange decided to terminate the listing of Guanghui Automobile stocks and convertible bonds, and will terminate the listing and delisting on August 28.

As of July 17, the last trading day before the suspension, Guanghui Motor closed at 0.78 yuan per share, with a total market capitalization of 6.471 billion yuan.

Reviewing the development of Guanghui Automobile, the early Guanghui Automobile has good qualifications. In May this year, Guanghui Automobile ranked first among the top 100 dealer groups in China's automobile circulation industry with revenue of 137.998 billion, ranking first among the top 100 dealer groups with sales of 713467 vehicles. This is the 13th year in a row that Guanghui Automobile has been on the "Top 100 Dealer Group list of China Automobile Circulation Industry". In addition, Guanghui Automobile ranked fourth in the 2024 New Energy ranking list of China Automobile Distribution Industry Dealers Group, and a number of its 4S stores won the honor of "Top 100 Dealers of 2024 China Automobile Dealers Conference". But even so, Guanghui Motors can hardly be left alone.

According to the data, Guanghui Automobile is the leading passenger car distribution and service group in China, which was established in 2006. Since then, it has acquired automobile distribution companies in Anhui, Chongqing, Gansu, Hebei, Ningxia, Shandong and other places. And became the leading car dealer in China in 2012. In June 2015, Guanghui Automobile successfully entered the A-share market through backdoor Mero Pharmaceutical Co., Ltd. The following year, it rushed to buy Baoxin, BMW's largest dealer in China, and later renamed it Guanghui Baoxin. However, under the background of the change of the general environment of the car market and the intensification of competition, Guanghui Automobile can not escape the declining performance. According to the financial report, from 2018 to 2020, Guanghui Automobile achieved net profits of 3.257 billion yuan, 2.601 billion yuan and 1.516 billion yuan respectively, with net profit growth rates of-16.27%,-20.16% and-41.72%, respectively. By 2022, Guanghui Motor had an annual loss of 2.669 billion yuan, a year-on-year drop of 265.92%.

In this context, Guanghui Automobile has also adapted to the new energy trend to make adjustments, but unfortunately the harvest is not much. Guanghui Automobile turned from loss to profit in 2023, with annual revenue of 137.998 billion yuan, but net profit of only 392 million yuan, and its share price fell below 2 yuan at the end of 2023. There has been no significant improvement in business conditions in 2024. In the first quarter of 2024, Guanghui Motor achieved revenue of 27.79 billion yuan, down 11.49% from the same period last year, and net profit of 70.9405 million yuan, down 86.61% from the same period last year. By the end of the first quarter, Guanghui Automobile's asset-liability ratio reached 61.98%.

On July 13, Guanghui Motor issued a forecast of half-year results for 2024, saying that the net profit for the first half of the year is expected to be-583 million yuan to-699 million yuan, and net profit after deducting non-recurrent profit and loss is-756 million yuan to-872 million yuan. As for the reasons for the pre-loss of performance, Guanghui Automobile explained that due to the downgrade of market consumption and the intensification of competition in the industry, major car companies fought a price war to seize market share, resulting in a decline in the scale of new car sales and gross profit margin compared with the same period last year. At the same time, the company took decisive "shutdown and amortization" measures against weak brands, continuous losses and inefficient stores, resulting in impairment and accelerated amortization of claims, franchises and other related assets receivable during the reporting period, resulting in one-time losses and expenses.

As one of the largest car dealer groups in China, Guanghui Motor has reached the stage of delisting. Guanghui Motor also tried to save itself when it was on the verge of delisting. On July 11, Guanghui Motor announced that Guanghui Group, the controlling shareholder, had signed a framework agreement with Jinzheng Technology to transfer its shares. The agreement stipulates that Guanghui Group will transfer 24.5% of its shares in Guanghui Automobile to Jinzheng Technology after December 19, 2024, and the control of the company will be changed after the transaction is completed. In other words, Guanghui Motor will usher in a new controlling shareholder at that time. People in the industry believe that behind Guanghui Motor's proposed change of controlling shares, it is hoped that the new controlling shareholders can return its share price to 1 yuan, eliminating the risk of "face value delisting". Unfortunately, this act of self-help did not work.

It should be noted that Guanghui Motor's difficulties are not alone, including Zhongsheng Group, Yongda Automobile, Bidley Holdings, Meidong Motor, Zhengtong Motor and other large car dealers are also in the dilemma of declining profits. Prior to this, the "king of 4S stores" huge group has not been able to get rid of the fate of delisting. In July this year, Sinfeng Group Co., Ltd., the largest car dealer in Yancheng, Jiangsu Province, was also reported to have suffered a major financial crisis.

With the reshuffle of the car market, the profit margins of dealers have been further compressed, and life is not easy for most car dealers. It is understood that only 35.4% of dealers made profits in the first half of this year, while the proportion of loss-making dealers reached 50.8%, and the percentage of break-even dealers was 13.8%. In this context, "how to change" or "how to adapt to the changes of the times" is a question worth thinking about by many car dealers.

There will be no permanent winners in the market, especially today, the automobile market is becoming more and more open and the competition is becoming more and more fierce. if you are not careful, you may face a cruel exit, and the delisting of Guanghui Automobile has once again sounded the alarm for car dealers.

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