On May 20, GAC GROUP held the 2023 annual shareholders’ meeting at the Guangzhou Automobile Center.
In the exchange session, GAC GROUP Chairman Zeng Qinghong and GAC GROUP General Manager Feng Xingya respectively responded to GAC’s response to hot issues such as market competition, international layout, marketing innovation, dividends and buybacks.
GAC GROUP, “the competition in the automobile industry is very fierce this year.
The price war has been badly fought in the first half of the year.
It is expected that the price war will continue in the second half of the year.
” Zeng Qinghong said bluntly that he hoped that the relevant state departments would introduce relevant policies to guide fair competition in the market.
According to its forecast, the auto industry will grow slightly by 3% to 5% this year, mainly in overseas markets and new energy vehicles.
Therefore, GAC GROUP will continue to increase the layout of overseas markets, and make every effort to promote the transformation of independent brands and joint venture brands to intelligence and electrification.
“the next two or three years will be our adjustment period and transition period.
” Feng Xingya said frankly that GAC started relatively late in the overseas market, but on the other hand, it has great potential and avoids the detours similar to other brands’ withdrawal from the market and re-entry because of poor quality and reputation.
He stressed that GAC will seize the opportunity and go all out in the golden period of overseas export of domestic cars.
“I often joke that either I am overseas or I am on my way to go through overseas formalities.
I just came back from Egypt the day before yesterday.
Several countries we have developed recently have been very successful, especially in Africa, which has a lot of potential.
” He mentioned that there are generally three stages in the overseas market, the first stage is to sell the whole car, the second stage is to assemble locally, and the third stage is complete localization.
One of the advantages of GAC’s efforts in overseas markets is that it can directly cut in from the second stage, because there is already an industrial base overseas, GAC has directly cut into local production to assemble KD parts.
GAC GROUP’s first overseas CKD project-Malaysia Siyamo Factory has been completed for mass production.
photo source: GAC GROUP, according to introduction, for overseas markets, GAC is using the efforts of the whole group to develop, the goal is very clear, measures are also clear.
At present, GAC has entered more than 40 countries and regions, and the number is growing rapidly.
“according to the original plan, GAC International lost 50 million last year, but it actually made a profit, which proves from the side that our internationalization strategy is effective.
” Feng Xingya added.
In the face of the doubts faced by GAC in terms of marketing, Zeng Qinghong said that in terms of marketing, GAC really failed to keep up with the market in terms of sales innovation, sales methods and tools.
In his view, GAC’s products and intelligence are not poor.
“for example, we were the first to cooperate with Huawei and other enterprises, set up a team of 300 people to develop together, and we also have layout and strength in smart driving.
But now it is volume owner and volume flow, so now we have to change the traditional way of sales.
We have been doing research recently, and now we can see ourselves playing on Video account, Weibo, Douyin and so on.
We will optimize our brand strength, marketing power, service power and product power, and enhance our profitability at the same time.
” Feng Xingya also said that in the field of sales, compared with the advanced marketing team in the industry, there are many areas that need to be innovated, improved and improved, especially in the use of some new marketing techniques.
But GAC also has advantages, such as the platform of state-owned enterprises, the process of joint ventures and the efficiency of the private sector, which will give full play to the advantages of the platform.
In addition, with regard to performance management, Zeng Qinghong mentioned that GAC GROUP is the first municipal state-owned enterprise to implement professional managers, and it has to compete with various types of private, joint venture and state-owned automobile enterprises in the market, in order to enhance its competitiveness.
GAC has developed a long-term and market-oriented management mechanism for the performance management of the management team, and the performance and mechanism should be said to be very strict.
According to him, GAC’s senior management team is both a business leader and a shareholder.
When the company’s performance rises, their salary rises.
If the performance cannot be completed, the person in charge may have to resign voluntarily.
The goal is to fully release the enthusiasm of the management team.
In addition, when asked “GAC has increased its dividend in 2023 and has a plan to buy back, will these become the norm?” Zeng Qinghong said that maintaining and striving to increase the dividend rate has always been GAC’s insistence.
GAC’s cumulative dividend ratio has been maintained at more than 30% over the years, reaching 36% in 2023, and will continue to be maintained and improved in the future.
In addition, GAC also plans to carry out the repurchase of An and H shares, with an overall capital scale of 500 to 1 billion yuan, of which the total capital of H share repurchase is between 400 million yuan and 800 million yuan.
GAC is actively transforming and moving towards the goal of “trillion GAC”.
We are full of confidence in the company’s future development prospects.
The H-share buyback will be cancelled, which will increase earnings per share, increase the return on net assets and improve the capital structure.
In the future, the company will adhere to the normalization of dividends, and at the same time, according to market conditions, make good use of share buybacks and other tools to enhance investment value to create more value for shareholders.
” Zeng Qinghong finally said.
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