The car company's performance for six months is different from that of its own brands.

The performance report of domestic listed car companies for the first half was released last week. Consistent with previous expectations, almost all car companies have doubled their net profit growth. The net profit growth of FAW Car, SAIC Motor, Changan Automobile and FAW Xiali is between two and four times. However, in terms of overall vehicle profit margin, the profitability of the self-owned brands including Geely, Great Wall, etc. has declined, and the overall profitability is still weak.

Car companies doubled their net profit growth

Four major listed companies led the auto industry in the first half of the year. FAW Cars, SAIC Motors, Changan Automobiles, and Hong Kong-listed Dongfeng Motor Group accounted for 149.69%, 306.03%, 153.38%-162.76% (forecast), and 155% of net profit, respectively. The year-on-year increase yielded a rather bright response.

Among them, Shanghai Automotive's first-half net profit reached 5.871 billion yuan, an increase of 306.03% year-on-year. SAIC indicated that this was mainly due to two reasons. First, from February this year, Shanghai GM was included in the scope of the consolidated statement, and contributed 51.7 billion yuan in operating revenue for SAIC Motor. In addition, SAIC's own brands also began to make profits. Roewe 550 continued to sell hot new products based on the Roewe 350 and MG6, further enriching the product line. In the first half of the year, sales of its own brands increased by 99% over the same period last year.

The joint venture model is still the main source of profit for each listed car company. It is precisely under the support of its shareholding FAW-Toyota Co., Ltd. that FAW Xiali, which has been on a profit-losing point for the past two years, set a net profit of 287 million yuan in the first half of the year, a rare year-on-year increase of 457.35%. After dissolving the Zhonghua sedan business, with the help of its joint venture company, BMW Brilliance, Brilliance also successfully turned losses into profits in the first half of the year. Changan Automobile also stated in its report that the high growth in net profit also came from the significant increase in the profit of the joint ventures. In terms of self-owned brands, the most spectacular gains include JAC and Great Wall. The former’s net profit surged by 328.42% compared with the same period of last year, while the latter increased by 2.31 times.

Low self-owned brand profitability

Compared with the increase in sales and net profit, companies value the change in the profit rate of bicycles. The results show that the profit rate of the joint-venture car companies and the group is generally in the rising channel. However, the profitability of self-owned brands has declined to varying degrees.

Although the overall performance turned profitable, the gross profit margin of Huachen Motor dropped from 14.2% to 11.8%. Similarly, with the rapid increase in sales volume, Geely Automobile reported a decline in its profit margin. The gross profit margin in the first half of the year was 18.9%, which was lower than the same period of last year. Geely attributed the reason for the payment of the company's shares to employees and the rapid increase in financial expenses. However, analysis and analysis in the industry pointed out that the decrease in the proportion of export vehicles and the decline in market share brought about by the listing of a series of new vehicles is the main reason. In the first half of this year, Geely sold 195,000 cars, which accounted for only 49% of the annual sales target of 400,000. Moreover, the net profit of Geely Automobile, which is the most concerned, has only increased by 35% in the first half of the year.

In addition, there is also a decline in profit margins of FAW Xiali, its gross profit margin was 7.49%, down 3.96% year-on-year. Although Jianghuai’s gross profit margin has improved, the unprofitability of the car business still plagues the overall development.