AutoBeta(AutoBeta.net)08/23 Report--

On August 22, brilliance China Automotive Holdings Co., Ltd. (hereinafter referred to as "brilliance China") released its interim results report for 2024. According to the financial report, brilliance China's income in the first half of 2024 was 518 million yuan, an increase of 2.0% over the same period last year, while the profit attributable to shareholders was 1.473 billion yuan, down 60.65% from the same period last year.

Brilliance China's main source of profits comes from the associate brilliance BMW Co., Ltd. According to the financial report, the associated company brought 2.734 billion yuan to brilliance China in the first half of 2024, down 27.29% from the same period last year, mainly from brilliance BMW, while the decline was due to the decline in brilliance BMW sales.

Brilliance BMW has been an important source of profits for brilliance China since its establishment in 2003. According to the report, data show that BMW Group sold 1.2134 million vehicles worldwide in the first half of 2024, almost the same as the same period. It delivered 375900 BMW and MINI-branded cars in China, down 4.2% from the same period last year. China is the market where BMW Group's sales declined the most. Among them, brilliance BMW sold 319500 vehicles in the first half, with the highest sales of the BMW 3-Series with 77100 vehicles, the BMW X3 with 57600 vehicles and the BMW X5 with 46900 vehicles.

Brilliance China sold a 25% stake in brilliance BMW to BMW in 2022. There had been rumors that brilliance China might sell the remaining 25 per cent stake. Brilliance China also clarified this. Finally, brilliance China achieved a net profit of 1.473 billion yuan in the first half of the year, down 60.65% from the same period last year. Due to the decline in sales of BMW brilliance, coupled with the price in exchange for volume, brilliance China's days to make money from brilliance China will become more and more difficult.

According to the data, brilliance Automobile Group holding Co., Ltd. was established in September 2002 with a registered capital of 800 million yuan. Brilliance Group is a large vehicle manufacturing enterprise controlled by Liaoning SASAC, which directly or indirectly controls and participates in four listed companies, and establishes brilliance BMW through its listed company brilliance China and BMW. On November 20, 2020, Shenyang Intermediate people's Court ruled that brilliance Group creditors' application for restructuring of brilliance Automobile Group was accepted, and brilliance Automobile Group officially entered the bankruptcy reorganization process. Previously, brilliance Group had three independent brands, namely, China, Golden Cup and Huasong, and two joint venture brands, brilliance BMW and brilliance Renault, but by 2024, brilliance Group had only brilliance BMW to support, and its shareholding had dropped from 50% to 25%.

The reorganization of brilliance Automobile Group has lasted for more than three years since it was ruled to accept bankruptcy restructuring in November 2020. After several years of twists and turns, the reorganization case finally entered the stage of implementation of the reorganization plan. On August 2, 2023, the Shenyang Intermediate people's Court has announced that it has approved the substantive merger and reorganization plan of 12 enterprises, including brilliance Automobile Group Holdings Co., Ltd., and terminated the reorganization procedures of 12 enterprises, including brilliance Automobile Group. On March 15, 2024, brilliance China announced that 100% of brilliance's stake had been transferred to Shenyang Automobile and had completed the industrial and commercial registration related to the change. Although there is no specific plan at present, the market hopes that the restructuring of its parent company will bring a cash distribution to repay debt, which will help improve the dividend outlook.

In addition, brilliance China's brilliance Renault Gold Cup Automobile Company Limited ("brilliance Renault"), which operates its light passenger car and light commercial vehicle ("LCVs") business, has been approved and completed by the Shenyang Intermediate people's Court on May 23, 2023 for a period of 12 months. The performance report also revealed that Huachen Renault in 2024 will start the debt repayment process in accordance with the restructuring plan and prepare to resume work and production.

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