AutoBeta(AutoBeta.net)11/03 Report--

On October 31st, SAIC and GAC GROUP released their third-quarter results on the same day, showing a sharp decline in sales, revenue and profits of the two large automakers. In sharp contrast, BYD, which also announced its results on October 31, hit a new high, with sales, revenue and profits rising simultaneously.

According to the financial report, SAIC's operating income in the third quarter of 2024 was 142.56 billion yuan, down 25.58% from the same period last year; net profit was 279 million yuan, down 93.53% from the same period last year; and non-net profit was only 29.1661 million yuan, down 99.23% from the same period last year. SAIC said in its financial report that the decline was mainly due to a decline in the fuel vehicle market, an unprecedented price war, a decline in sales revenue, a decline in gross profit and a decrease in cash inflows. During the reporting period, SAIC sold 822400 vehicles, compared with 1.3057 million in the same period, down 37.0 per cent from a year earlier, and monthly sales fell by more than 35 per cent.

Subdivided into major brands, the former sales pillars SAIC Volkswagen, SAIC General Motors, SAIC GM Wuling all declined, among which SAIC GM declined more seriously, while SAIC passenger cars and SAIC Chase of the independent brand camp also declined to varying degrees, the only one that did not decline was SAIC Zhiji, but sales accounted for the group was not high, soaring can not reverse the overall situation of the group.

In order to change the disadvantage, SAIC took the initiative to change. In July this year, SAIC welcomed the largest high-level change of defense, from SAIC to SAIC Volkswagen, SAIC General Motors, SAIC passenger cars, SAIC GM Wuling, involving as many as 15 senior executives, almost completing a comprehensive coach change from the group to each branch. Whether it is the frequency of change or involving the number of people, positions, in today's automobile industry, it can be said to be the only existence. In addition, according to the Shanghai Automobile News, the party committee of SAIC recently launched five units, namely, SAIC Chase, Anji Logistics, SAIC sales, Global car sharing and Huayu Secco body, to compete for 25 general manager positions in its enterprises.

By the end of the third quarter, SAIC's total operating income was 430.482 billion yuan, down 17.74% from the same period last year, and its net profit was 6.907 billion, down 39.45% from the same period last year. It is worth noting that of the 6.907 billion yuan in profits in the first three quarters, 5.13 billion yuan was obtained from the sale of shares in MG India.

Let's take a look at GAC GROUP. The situation and problems faced by GAC GROUP are similar to those of SAIC, but GAC GROUP is more critical by comparison. According to the data, GAC GROUP's revenue in the third quarter was 28.49 billion yuan, down 21.46% from the same period last year, while the net loss was 1.396 billion yuan, down 190.40% from the same period last year, the largest quarterly loss since it went public in 2010.

The decline in revenue and profits is directly related to the decline in sales. GAC GROUP said that it was mainly due to the decline in sales volume, the increase in business and political investment, the decline in profits, the one-off expenditure on the optimization of redundant production capacity by joint ventures, and the increase in exchange rate losses caused by exchange rate changes, which led to a decrease in net profit compared with the same period last year. According to the data, GAC GROUP sold 472000 vehicles in the third quarter, down 25.0 per cent from a year earlier, with about 60 per cent of sales coming from Guangzhou Auto Honda and Guangzhou Automobile Toyota, but these two brands have been hit hard by the market. The third-quarter results show that the investment income of GAC joint ventures and joint ventures fell to 2.26 billion yuan from 7.07 billion yuan in the same period last year. In addition, the independent brand camp is also embarrassed, and the performance of GAC MOTOR and GAC Ean is also much worse than before, especially GAC Ean, which has been greatly affected by the contraction of the online car-hailing market. and compared with BYD, Geely, Chery and other brands lack of competitive advantage, sales are gradually decreasing.

By the end of the third quarter, GAC GROUP's total operating income was 74.741 billion yuan, down 23.88% from the same period last year, while net profit was only 120 million, down 97.34% from the same period last year. Deducting the non-net loss of 1.87 billion yuan, down 146.49% from the same period last year. This is GAC GROUP's worst financial performance since he went public 14 years ago.

In the context of joint ventures and independent overall market size and revenue challenges, GAC GROUP is making efforts to deepen reform. A few days ago, GAC GROUP issued an announcement that the management mode of independent brands will be changed from strategic control to business control, and implement the reform of relevant organizations at the same time. At the same time, GAC GROUP's headquarters will be relocated from the Pearl River New Town CBD to Panyu Motor City, where GAC MOTOR, GAC Ean and GAC R&D CENTER are located. In addition, GAC GROUP Party Committee Secretary and Chairman Zeng Qinghong is about to retire, and it is rumored online that the post may be taken over by Feng Xingya, the current general manager of GAC GROUP.

By contrast, BYD has achieved the brightest achievement in history. In the third quarter, BYD's operating income was 201.1 billion yuan, up 24.04% from the same period last year; net profit was 11.607 billion yuan, up 11.47% from the same period last year; and non-net profit was 10.878 billion yuan, up 12.67% from the same period last year. According to data, BYD's operating income in the third quarter has surpassed that of SAIC, and its profit is equivalent to 39 SAIC groups.

The sharp increase in BYD's operating profit is related to its strong performance in the auto market. BYD sold 1.1349 million cars in the third quarter, the highest in a single quarter in history, according to the data. As the world's largest new energy car manufacturer, BYD currently owns four major brands: BYD, Teng Teng, equation Leopard and look up. The BYD brand is divided into Ocean.com and Chao.com. BYD brand is the most important source of sales for BYD, accounting for 80% of sales.

By the end of the third quarter, BYD's revenue was 502.251 billion yuan, up 18.94% from the same period last year; net profit was 25.238 billion yuan, up 18.12% from the same period last year; and 23.192 billion yuan was deducted from non-net profit, up 19.86% from the same period last year. In terms of sales, BYD sold a total of 2.7479 million new energy vehicles in the first three quarters, an increase of 32.13% over the same period last year.

In the first three quarters, BYD has become the largest automaker in China, far surpassing SAIC in terms of operating income, net profit and market size. In terms of revenue, BYD's operating income in the first three quarters was 502.251 billion yuan, while that of SAIC was 430.482 billion yuan. In terms of sales, BYD sold 2.7479 million vehicles in the first three quarters, compared with 2.6493 million for SAIC. In terms of market capitalization, BYD has a total market capitalization of 844.6 billion and SAIC 149.2 billion.

It can be seen that SAIC and Guangzhou Auto are facing unprecedented challenges. For SAIC and GAC, how to ensure the market share of the joint venture brand is the most critical. After all, it accounts for more than 60% of the group's share, which is also an important source of profits. At the same time, we also need to vigorously develop new energy vehicles. Independent brands are the hope of the group in the future. However, according to the current market conditions, joint venture brands have greatly reduced their prices in order to stabilize sales, and independent brands are facing market grabs from BYD, Geely, Chery and other brands. SAIC and Guangzhou Auto have changed from grabbing as much market as possible to how to survive in the transition.

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