AutoBeta(AutoBeta.net)10/29 Report--

Under the cold winter of the car market, it is a test for every car company, and Beijing Automobile is no exception. On October 29th, Beijing Auto released its third-quarter operating results, with total revenue of 138.03 billion yuan from January to September this year, an increase of 14.8 percent over the same period last year. The net profit attributed to the owner of the parent company was 3.004 billion yuan, down 21.1 percent from the same period last year.

According to specific brand sales, in the first three quarters, Beijing Mercedes-Benz sold 425400 vehicles, up 17.4 percent from the same period last year; Beijing Hyundai sold 512100 vehicles, down 2.6 percent from the same period last year; and Beijing sold 52500 cars, down 51.1 percent from the same period last year.

Earlier, Daimler released Beijing Mercedes-Benz sales results for the first three quarters, Daimler's financial statements for the third quarter of 2019 related to Beijing Automobile and Beijing Mercedes-Benz (holding 9.6% and 49%) were 29 million euros (down 12.12%) and 1 billion euros (down 1.67%), respectively, compared with 33 million euros and 1.017 billion euros in the same period last year.

Although Beijing Mercedes-Benz's profits have declined due to overall downward pressure, Beijing Mercedes-Benz's hot sales still contribute most of its profits to Beijing Auto. After all, Beijing Mercedes-Benz has always been BAIC's profit cow, contributing nearly 90% of its revenue to Beijing Automobile in 2018.

Beijing Hyundai, another joint venture brand, reported a loss of 365 million in the first half and 363 million in the first three quarters, meaning that Beijing Hyundai has stopped losing money. In September, Beijing Hyundai completed sales of about 68600 vehicles, up 36% from a month earlier. Although it is still in a downward trend compared with the same period last year, monthly sales have returned to more than 60, 000 vehicles that have not been seen for a long time, indicating that the adjustment effect of Beijing Hyundai is gradually emerging.

Sales of Beijing auto independent brand Saab are still in the doldrums, and sales have been in the doldrums since the restructuring of the Beiqi Genbao brand. Public data show that BAIC Saab sold 225000 vehicles in 2017 and 105000 vehicles for the whole year, down more than 50% from a year earlier. In 2018, sales plummeted again, selling only 69000 vehicles for the whole year. In 2019, BAIC Saab sales are still poor. In order to cooperate with all kinds of resources, save costs, increase its competitiveness and survive the cold winter, BAIC Group released a new brand "BEIJING" to integrate its BAIC Saab brand with BAIC New Energy as planned.

Based on the share of profits distributed to the German side by Beijing Mercedes-Benz, BAIC's independent loss in the first three quarters was about 5 billion, basically the same as in the same period last year. In the first three quarters, revenue minus operating costs, revenue increased by 15%, but gross profit did not increase, indicating that Beijing Mercedes-Benz does not increase profits this year, and there is great price pressure. Profits in the first three quarters fell by 800m year-on-year to 3 billion, mainly due to a year-on-year loss of 740 million from Beijing Hyundai. Generally speaking, Beijing Hyundai has stopped losing money, Beijing Mercedes-Benz performance is stable, and BAIC's independent loss remains unchanged.

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