AutoBeta(AutoBeta.net)10/27 Report--

On October 27th, the National Bureau of Statistics released the profit report of industrial enterprises above the national scale for the period from January to September. Among the 41 major industrial industries, the total profits of 30 industries increased compared with the same period last year, while 11 industries decreased. Among them, the profits of the automobile industry declined, with a total profit of 373.46 billion yuan from January to September, down 16.6% from the same period last year.

In 2019, the automobile industry is affected by many factors, such as the macro-economic slowdown, the automobile market tends to be saturated, and the sixth-grade emissions are implemented in advance, resulting in a continuous decline in car sales, a decline in the efficiency of automobile enterprises, and the automobile industry has entered a cold winter. According to the statistics of the China Automobile Association, China's automobile production and sales have declined for 15 consecutive months compared with the same period last year. From January to September, automobile production and sales completed 18.149 million and 18.371 million respectively, down 11.4% and 10.3% respectively over the same period last year, and the decline remained in double digits. At the same time, the production and sales of the new energy vehicle industry, which had high subsidies and high growth, also declined for three consecutive months, and the decline exceeded expectations.

In this environment, Fu Yuwu, honorary chairman of the Society of Automotive Engineering, believes that the automotive industry has not yet hit rock bottom, and the situation next year is not optimistic. In this context, car companies without brands, core technology, and capital will collapse one after another.

Profits of the automobile industry fell 16.6% from January to September compared with the same period last year, directly reflecting the overall situation of the decline in profits of car companies. Sorting out and statistics on the performance of 18 domestic mainstream car companies in the first half of 2019, 5 car companies fell into losses, and 10 of the 13 car companies with positive profits showed a decline in profits, accounting for 77%.

As the largest auto company in China, SAIC's profits in the first half of the year fell by more than a quarter compared with the same period last year. According to the semi-annual report, SAIC's total operating income reached 376.293 billion yuan, down 19.05% from the same period last year, while the net profit belonging to shareholders of listed companies was 13.764 billion yuan, down 27.49% from the same period last year. SAIC Group owns SAIC Volkswagen, SAIC General Motors, SAIC passenger cars, SAIC GM Wuling and other enterprises. from January to September, SAIC sold a total of 4.414 million vehicles, down 14.23% from a year earlier.

Beijing Automobile achieved operating income of 87.764 billion yuan in the first half of the year, up 14.1 percent from the same period last year, while net profit was 2.09 billion yuan, down 25.9 percent from the same period last year. The announcement pointed out that the revenue growth was mainly due to the increase in sales of Beijing Mercedes-Benz and Beijing's own brands, while the decline in profits was due to the increased competition in the domestic passenger car industry and the overall downturn in the Korean car market.

According to BYD's first-half performance report, revenue was 62.184 billion yuan, up 14.84% from the same period last year, and net profit was 1.455 billion yuan, up 203.61% from the same period last year. In the automotive and related products business, the company achieved revenue of about 33.9 billion yuan, up 16.27% from the same period last year, of which the revenue from the new energy vehicle business reached 25.45 billion yuan, an increase of 38.77% over the same period last year, accounting for 40.92% of the group's income. In addition, BYD expects third-quarter profits to fall sharply compared with the same period last year due to the decline in market demand and the sharp decline in subsidies for new energy vehicles.

Geely Motor's results for the first half of 2019 showed that the group's total revenue (excluding the income of Lecker JV) fell 11% to 47.559 billion yuan in the first half compared with the same period last year, while net profit fell 40% year-on-year to 4.009 billion yuan. From January to September this year, Geely's total sales reached 958110, down 19% from a year earlier, and the annual target was adjusted to 1.36 million.

The net profit of Great Wall Motor in the first half was 1.517 billion yuan, down 58.95% from the same period last year. In the just released third-quarter report, profits improved, with a net profit of 2.917 billion yuan in the first three quarters, down 25.7 percent from the same period last year. From January to September, the cumulative sales of Great Wall reached 724113, an increase of 7% over the same period last year, making it one of the few independent brands to achieve sales growth.

Changan independent and joint venture brands suffered a heavy setback and suffered huge losses in the first half of the year. According to the announcement, the operating income of Changan Automobile reached 29.876 billion yuan in the first half of this year, down 16.18 percent from the same period last year. The net profit belonging to shareholders of listed companies was-2.24 billion yuan, down 239.17 percent compared with 1.61 billion yuan in the same period last year. Among them, Changan Ford lost 777 million yuan, Jiangling Holdings lost 473 million yuan, Changan bell wood lost 246 million yuan, and only Changan Mazda made a profit of 873 million yuan.

GAC GROUP's operating income in the first half of the year was 28.123 billion yuan, down 23.38% from the same period last year, while the net profit belonging to shareholders of the parent company was 4.919 billion yuan, down 28.85% from the same period last year. The decline in sales in the independent sector is the main reason for the change in performance, while Guangzhou Auto Honda and Guangzhou Automobile Toyota have become the supporting points of sales and profits.

The main passenger car brands of FAW cars are the Pentium brand and FAW Mazda, with total revenue of 10.7 billion in the first half of 2019, down 18.3% from the same period last year, and net profit of 9.64 million, down 88.1% from the same period last year. The company said that due to the influence of the market and the continued intensification of competition, the company's product sales decreased, as well as the switching of the five countries and six countries and other factors led to a significant decline in performance.

Lifan car sales fell sharply, making it difficult to make a profit. Lifan lost 947 million yuan in the first half of the year, and the latest report shows that Lifan lost a total of 2.633 billion yuan in the first three quarters. According to the production and sales report, the company sold 22000 traditional passenger cars from January to September, down 72.25% from a year earlier, while sales of new energy vehicles totaled 2035 in the previous September, down 65.67% from a year earlier. The rest includes the motorcycle and gasoline engine business, while Lifan has declined to varying degrees.

Zhongtai Automobile's performance report showed that the company's operating income in the first half was 5.04 billion yuan, down 50.83% from the same period last year, while the net profit belonging to shareholders of listed companies was a loss of 290 million yuan, down 195.37% from the same period last year. Zhongtai accumulated sales of 134600 vehicles from January to September, down 32.4% from the same period last year.

Seahorse Motor, which was re-recognized as a result of "selling houses", achieved an operating income of 2.323 billion yuan in the first half of the year, down 14.67 percent from the same period last year, with a loss of 178 million yuan. Due to successive losses in 2017 and 2018, Haima Motor was warned of the risk of delisting by the Shenzhen Stock Exchange in April this year, and the name of the stock was changed to "* ST seahorse". The cumulative sales of seahorse cars from January to September were 21979, down 60.78% from the same period last year.

FAW Xiali achieved operating income of 268 million yuan in the first half of the year, down 62.45% from the same period last year; the net profit belonging to shareholders of listed companies was about-551 million yuan. In the first half of this year, FAW Xiali Weizhi and Junpai accumulated production of 1126 cars, down 93.34% from the same period last year, and cumulative sales of 3920 vehicles, down 69.86% from the same period last year.

On the whole, the changes in the market environment have led to a downturn in the automobile manufacturing industry, a reduction in profits or losses, but also a direct impact on the upstream and downstream supplier industry chain, opening the prelude to the reshuffle of the automobile industry. What is more serious is that the future downturn in the auto industry will continue.

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