AutoBeta(AutoBeta.net)08/24 Report--

Brilliance China released interim results, with revenue of 1.904 billion yuan for the six months ended June 30, 2019, down 16.7% from a year earlier, while profit attributable to shareholders was 3.23 billion yuan, down 9.4% from a year earlier.

The decline in earnings was mainly due to a decline in sales of light passenger cars and multi-purpose vehicles (MPV) during the period, as well as a decline in auto parts sales, the announcement said. In addition, the decrease in profit was mainly due to the slowdown in demand for internal combustion engines and the decrease in profits contributed by Shenyang Aerospace Mitsubishi Automobile engine Manufacturing Co., Ltd.

In the first half of the year, the product mix, market competition and the implementation of a number of new regulations affected the group's light bus and MPV sales. Brilliance Renault sold 20, 000 light passenger cars and MPV models, down 11.0% from the same period in 2018, while sales of Grace products fell 7.5% year-on-year to 1428.

According to the data, brilliance sold 290500 vehicles in the first half of 19, up 3.38% from 281000 in the same period of 18 years. Brilliance BMW is the main support for sales, brilliance BMW single car sales accounted for more than 90% of the total sales of brilliance Group, the first half of the cumulative sales of up to 262500 vehicles, compared with the same period in 18 years, an increase of 26%.

Since the change of the equity ratio structure of the joint venture in 2018, brilliance has focused on increasing production capacity and launching new models in the market to further enhance the competitiveness of brilliance BMW's product portfolio in China.

The new X3 product was launched in June 2018, further enhancing the competitiveness of brilliance BMW product portfolio in China, and the main driver of brilliance BMW sales growth during the period. The 3 series products sold out in the first six months of this year, preparing the market for the new model to be launched in July 2019. In addition, sales of 5-series, X1 and 1-series cars continued to increase during the period.

At the same time, the report points out that due to the current market uncertainty, the second half of 2019 is still challenging and likely to fluctuate for China's auto industry and brilliance. Brilliance's top priority remains to maintain brilliance's leading position in the luxury car market and to work closely with Renault to implement a new strategy to turn brilliance from losses to profits. and to find other businesses and make a profit for brilliance East Asia Auto Finance.

However, some industry insiders pointed out that brilliance Group relies too much on brilliance BMW as a "profit cow". In case something happens to brilliance BMW, the consequences for brilliance Group will be unimaginable.

It is worth mentioning that in late June, brilliance Renault Gold Cup Co., Ltd. exposed that "employees reported their CEO under their real names". According to the reported employees, since brilliance Gold Cup 1 yuan "sell their bodies", the company's staff transfer has undergone earth-shaking changes, and a number of veteran employees with open-ended labor contracts have been laid off for no reason.

Half a year since brilliance Renault was founded, French executives have held a meeting to publicize that they will eliminate the employees of the former brilliance system within 2-3 years. However, they could not find a legitimate reason for dismissal, so they returned their employees to brilliance Group by way of "soft layoffs" on the grounds that they did not comply with the "observation period Agreement".

In addition, brilliance announced that it will launch the Chinese V7 1.8T sports model on August 23, which is based on the ordinary version with an exclusive sports suite and a 1.8T engine licensed by BMW Group.

As for brilliance's own products, the old design and the singleness of powertrain are the main problems in China. At present, the price of the top version of the 1.8T model has exceeded 160000. Under the circumstances that the interior of the new car is not new and the brand influence is not strong, it is also very unrealistic to rely on the gimmick of "BMW cooperation engine" to impress consumers.

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