Unexpectedly, with a huge loss of 1.1 billion, China’s largest automobile group was upset.
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The loss in the second quarter was 1.1 billion (excluding non-recurring gains and losses), and SAIC handed over a report card that made people stunned.
SAIC, which won the title of the largest automobile company in China for 18 consecutive years, fell faster than the market expectation.
The decline of SAIC means the end of one era and the beginning of another.
1. With a huge loss of 1.1 billion, SAIC Big Brother ended.
On the 29th, SAIC announced its semi-annual results. From January to June, the wholesale volume of new cars of SAIC was 1.827 million, down 11.8% year-on-year. In the same period, the company’s total revenue was 284.69 billion yuan, down 12.8% year-on-year; Net profit was 6.63 billion yuan, down 6.5% year-on-year.
It is worth noting that among the 6.63 billion net profit of SAIC in the first half of the year, 5.13 billion was obtained from the transfer of shares in MG India. Accounting says that the income from selling shares is non-recurring gains and losses. Generally speaking, it is impossible for a normal company to sell shares every day, so it is called non-recurring gains and losses.
The non-net profit deducted by SAIC in the first quarter was 2.12 billion yuan, and in the second quarter, its net profit after deducting non-recurring gains and losses was only 1.02 billion yuan. In other words, SAIC’s recurring profit in the second quarter was a loss, and the amount was as high as 1.1 billion yuan.
It can be said that the second quarter is a turning point for SAIC to turn from prosperity to decline for many years.
Nowadays, SAIC has entered the era of Wang Xiaoqiu, and it remains to be seen how it can open up the situation and revive SAIC’s greatness.
But shopping malls are like sailing against the current. If you don’t advance, you will retreat. The market will not be suspended, and it will not wait for SAIC to slow down before resuming. With SAIC’s weakness, BYD is ready to win the title of SAIC.
2. BYD made a big profit of 13.6 billion while rolling up the price.
Compared with the decline of SAIC, BYD has a strong upward trend. In the first half of the year, BYD achieved revenue of 301.1 billion, up 16% year-on-year; From January to July, a total of 1.95 million vehicles were delivered, up 29% year-on-year; In particular, BYD’s overseas market is growing rapidly, with a cumulative export of over 230,000 vehicles, up 152% year-on-year. Overseas markets are expected to take over the domestic market, providing impetus for continuing BYD’s strong growth.
It is worth mentioning that BYD’s R&D support reached 20.2 billion in the first half of the year, which was 6.6 billion higher than its net profit. It can be seen that BYD attaches importance to research and development.
In terms of power generation, BYD has accumulated a certain technical moat.
The most urgent thing for BYD should be the self-research and self-driving sector. Under the reward, there must be brave men. Can BYD break through and continue to pay attention?
As for government subsidies, BYD received a government subsidy of 3.401 billion yuan in the first half of the year (included in the current profit and loss). Excluding this part of government subsidies, BYD can also achieve positive profits.
Objectively speaking, it cannot be said that BYD is a company that survives by subsidies. On the whole, BYD’s rising momentum is obvious and strong, and its takeover of SAIC has become the largest car company in China, which is expected to be realized this year.
3. The car track is a marathon
The contest between SAIC and BYD is essentially a contest between joint venture and independence; It’s a contest between fuel-driven and electric-driven The decline of SAIC and the rise of BYD are the manifestations of self-determination over joint ventures and trams over fuel vehicles.
The above conclusions are supported by data. In terms of sales volume, the sales volume of independent brands has long been separated from that of joint venture brands. In terms of penetration, the penetration rate of trams also broke through the 50% mark last month and became the mainstream.
However, the car track is a marathon, and SAIC’s loss of power does not mean that it is lonely; BYD’s sudden strength does not mean that its country will be solid forever. For example, in terms of smart driving, BYD’s level does not want to match its scale. You know, the rise of BYD is nearly three years.
The car track is still developing. Where is the next vent? Whoever catches the next vent can take off again.
There is no shortage of myths in the automobile rivers and lakes.