AutoBeta(AutoBeta.net)06/15 Report--

Due to performance losses, the stock name of Haima Motor Company was changed from "Haima Motor" to "* ST Haima" in May this year, which was warned of the risk of delisting by the Shenzhen Stock Exchange, and now it has also changed its name. A few days ago, * ST Haima announced that the Chinese name of the company has been changed from "Haima Automobile Group Co., Ltd." to "Haima Automobile Co., Ltd." and its English name will be "HAIMA AUTOMOBILE GROUP CO.,LTD." Change to "Haima Automobile Co.,Ltd."

* ST Haima said that according to the company's strategy, the company decided to change the company name in order to better reflect the company's business development plan and make it easier for investors to understand. At present, the registration procedures for industrial and commercial change have been completed, and the name of Haima Motor Co., Ltd. will be officially opened on June 26, 2019.

According to the 2018 annual report, the annual operating income of Haima Motor was 5.05 billion yuan, down 48% from the same period last year. The net profit attributed to listed companies was-1.637 billion yuan, with a year-on-year loss increase of 65%. The gross profit margin of the automobile industry was 6.34%, down 3% from the same period last year. In 2017 and 2018, the cumulative loss of Haima Motor exceeded 2.6 billion, losing the cumulative profits of Haima in the previous 16 years.

In view of this, on May 31, Haima received an inquiry letter from the Shenzhen Stock Exchange asking the company to explain the financial indicators such as gross profit margin, revenue, net profit and cash flow during the 2018 annual reporting period.

On June 14, Haima issued an announcement on the reply to the inquiry letter of the 2018 annual report of the Shenzhen Stock Exchange.

Haima responded that since 2018, the overall operation of China's automobile industry has been under greater pressure, with production and sales lower than expected at the beginning of the year. Affected by the external environment, the landing of category strategy and the further focus of products, the company's annual car sales were 67600, down 51.88% from the same period last year. In the view of the seahorse, the competition in the industry intensified in 2018, and the overall gross profit level of the automobile manufacturing industry declined, among which the gross profit of self-brand car companies decreased by a large extent. Seahorse said that both the decline in sales, the year-on-year decline in operating revenue and the increase in net profit losses are basically in line with the downward trend in the industry as a whole and the trend of most companies in the same industry.

In May this year, in order to save the seahorse and reverse the declining performance, the founder and actual controller Jing Zhu was re-elected as chairman of the company. Jing Zhu said that he was "determined to return to the front line, rebuild the seahorse and lead the employees to start a business for the fourth time."

Jingzhu also summed up and reflected: on the one hand, due to institutional constraints, the strategic investment decision on products is slow; on the other hand, blind expansion has resulted in heavy assets and greater inventory pressure on the enterprise.

In 2019, the situation facing the seahorse has not improved. Haima Motor sold 2981 new cars in May, down 62.4 percent from the same period last year, and accumulated sales of 10723 units in the previous month, down 70 percent from the same period last year. Sales plummeted, performance loss, seahorse in the overall car market environment under the adverse situation stalled, a sigh.

In the adjustment plan, Haima plans to adhere to the market orientation, implement new marketing, take advantage of the opportunity of the listing of new products such as Haima 8s, adjust the product structure, improve production and sales, and improve the company's profitability and sustainable business ability.

Haima Motors returned to people's horizons this year because of a house sale announcement, which was ridiculed by netizens as a "car brand focused on real estate speculation." In May, Haima sold its properties in Haikou Jinpan Industrial Development Zone, including 269 residential units and 15 shops, with a book value of 30.9 million yuan.

China's auto market has entered the stage of stock competition, which is bound to lead to an intensification of industry reshuffle, such as whether the independent brands of Haima Automobile can survive the cold winter. Or how long can it last?

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