SAIC released its results for the first quarter of this year just before May Day Golden week.
According to the contents of the report, in the first quarter of this year, SAIC’s total operating income was 143.
072 billion yuan, down 1.
95% from the same period last year.
net profit belonging to shareholders of listed companies was 2.
714 billion yuan, down 2.
48% from the same period last year.
and basic earnings per share was 0.
24 yuan, down 2.
48% from the same period last year.
On the whole, SAIC’s key financial data such as operating income, net profit and deducting non-net profit all decreased to varying degrees.
With regard to the changes in performance SAIC said in its announcement that the net cash flow generated by operating activities was mainly due to the appropriate adjustment of the loan scale of its subsidiary Shanghai Automobile Group Finance Co. Ltd. According to business needs and the optimization of deposit structure.
Of course, like many other auto companies, the decline in SAIC’s performance is mainly affected by the industry price war and other adverse effects.
As we all know, under the influence of the price war, the bicycle profits of car companies have decreased, which is also one of the main reasons for the decline in the profitability of most car companies today.
In addition, in the extremely competitive environment, as a large amount of consumer goods, the sales volume of cars itself is also very difficult to form increments, making life difficult for many car companies, such as Gaohe, Weimar and other new power enterprises even face the risk of imminent closure.
As a big factory which has been building cars for many years and one of the top 500 enterprises in the world, SAIC does not face the risk of bankruptcy like many new forces, but it is also true that profitability is declining and it is difficult to get out of the sales quagmire.
It is not only in the first quarter of this year that both revenue and profit of SAIC have declined for a long time.
In 2023, SAIC’s total operating income was 744.
71 billion yuan, and its net profit was 14.
11 billion yuan, down 12.
5% from the same period last year.
As can be seen from the key financial data, SAIC’s homecoming net profit fell by more than double digits in fiscal 2023 compared with the same period last year, equivalent to less than 40% of its all-time high of 36 billion yuan in 2018 and almost back to the net profit level of 13.
1 billion yuan in 2010.
Especially in terms of net profit, looking at the performance in recent years, except for an increase of 20% in 2021, it is in a downward trend– 29% in 2019, 20% in 2020, and 34% in 2022.
All of these dazzling figures show that SAIC’s profitability is declining.
In addition, in terms of assets, the report shows that in the first quarter of this year, the total assets at the end of the period were 959.
576 billion yuan and accounts receivable were 62.
556 billion yuan.
In terms of cash flow, the net cash flow generated by operating activities was a loss of 4.
546 billion yuan.
The cash received from the sale of goods and services was 157.
956 billion yuan, the average cash recovery ratio of the main business was 77.
96%, and the company’s cash flow was poor.
One of the biggest reasons for the decline in earning power is the failure to keep sales.
SAIC produced 824000 vehicles in the first quarter, down 13.
37% from a year earlier, and sold 834000 vehicles, down 6.
40% from a year earlier, according to official figures.
However, in terms of terminal delivery, SAIC delivered a total of 1.
132 million terminals in the first quarter, an increase of 9.
3% over the same period last year.
Its major brands showed different trends in the first quarter of this year.
Among them, the sales of SAIC-Volkswagen and SAIC-GM Wuling showed obvious growth, while SAIC-GM and SAIC passenger cars showed a downward trend, especially SAIC-GM, whose cumulative sales fell by more than 40% in the first quarter compared with the same period last year.
The situation is critical, and it has also become the subsidiary with the worst decline in sales within SAIC Group.
Specifically, the sales of SAIC-Volkswagen and SAIC-GM Wuling increased by 9.
60% and 16.
37% respectively in the first quarter compared with the same period last year, while Zhiji Automobile also increased by 165.
63% because of its small base.
But by contrast, SAIC GM and SAIC passenger cars fell by 40.
04% and 17.
27% respectively compared with the same period last year.
It is worth mentioning that SAIC vehicle sales have declined for five consecutive years since 2019, and the decline in sales has led to a continuous decline in its net profit.
In particular, the sales of the joint venture brand are in a quagmire, which makes SAIC suffer deeply.
Last year, SAIC sold 5.
02 million new cars, meeting only 83.
7 per cent of its annual sales target.
Among them, the joint venture camp performed poorly, with SAIC-Volkswagen sales of 1.
22 million vehicles, down 8% from the same period last year.
SAIC GM 1 million, down 14.
5% from the same period last year.
and SAIC GM Wuling 1.
4 million, down 12.
3% from the same period last year.
The annual sales of the troika were 3.
6191 million, down 11.
5% from the same period last year, nearly 500000 less than in 2022 and nearly 2.
5 million less than at its peak in 2018, completely offsetting the sales lost by SAIC.
Under the sluggish sales performance, last year, SAIC-Volkswagen had revenue of 140.
3 billion yuan and net profit of 3.
1 billion yuan, while SAIC-GM had revenue of 145.
3 billion yuan and net profit of 2.
5 billion yuan.
SAIC GM Wuling has revenue of 76 billion yuan and net profit of 900 million yuan.
The net profits of the three companies together account for 46% of SAIC’s total profits.
The troika, which once pushed SAIC’s sales and profits to its peak, is now lagging behind to varying degrees in the face of a new era of transformation, and SAIC has come out in the comfortable days of “lying down to make money”.
Today, the failure of the troika to climb the slope in the first quarter has also led to a decline in the performance of SAIC, which is heavily dependent on joint ventures.
The recent exposure of SAIC-Volkswagen internal video about whether to renew Wu Lei as a spokesman sparked a heated discussion, which also sparked a heated discussion.
The decline in corporate profits, including SAIC-Volkswagen, has become an iron shackle to their development.
Fortunately, SAIC has the performance of new energy markets and overseas markets to cover up its shame.
In terms of new energy vehicles, SAIC sold 210000 vehicles in the first quarter, an increase of 47.
88% over the same period last year.
Among them, sales in the domestic market reached 168000, an increase of 117.
5% over the same period last year, while terminal delivery in overseas markets reached 269000, an increase of 21.3%. The growth of overseas sales and the optimization of the main selling market have become an important source of additional increments for SAIC.
In addition, SAIC has also produced many blockbuster products since the beginning of this year, including SAIC GM’s Buick GL8 PHEV, Wuling Xingguang Pure Electric version, the upcoming Zhiji L6, Roewe E5X, SAIC Volkswagen ID.
7 and so on, which will have the opportunity to promote SAIC’s sales counter-attack in the second quarter and even for the whole year.
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