From 2011 to October 2011, the first heavy loss report in the Chinese auto industry was born. In the third quarter of the year, Chang’an Automobile, with a strong background, had a “leadership†of RMB142 million in the third quarter, followed by another third-quarter FAW sedan with a net loss of RMB49 million. Financial report. In the semi-annual report, GAC Changfeng’s financial situation, which has seen “small†losses, continues to deteriorate, with the amount of losses in the third quarter reaching 100 million yuan. The three earnings reports sounded the "alarm" for the loss of car companies.
It is not just the two state-owned enterprises that are eager to be listed on the market. Changan and FAW sedan only SAIC and Great Wall Motor have maintained their upward momentum in the first three quarters. While most of the auto companies' profits have fallen to the lows in recent years, unprecedented pressure on corporate cash flow has also been clearly "drying" in the sun after the policy umbrella has been retired.
This is the "exemption of preferential policies, rising costs, sales decline," and other external factors written into the financial report can not be fully explained. However, Changan's nearly 30 billion yuan in 2010 crazy investment and FAW Group rush to the overall listing of independent capacity expansion may be able to respond to the current car company's current capital chain crisis.
"The large-scale rolling investment will inevitably bring a heavy financial burden to the company's subsequent development." Southwest Feng Securities analyst Liu Feng pointed out that the domestic car companies obviously have not prepared for the "2010 Carnival Season" that will surely end. The lack of internal profitability and the fund overdraft under blind expansion have already laid the foundation for the “dead seasonâ€.
Unprecedented cash flow pressures entered into 2011, and monthly sales of Changan Automobile all the way down, finally losing money in the third quarter of “Jin 9 Silver Tenâ€. Chang'an Auto's third-quarter financial report showed that its net profit was -144 million yuan, a year-on-year decline of 140%. In 2009, Changan Automobile's net profit surged 43% year-on-year, and it also climbed 80% year-on-year in 2010.
Changan Automobile explained that the decline in profit was mainly due to the decline in mini vehicle sales. Stimulated by the mini vehicle sales boosted by the small-displacement policy in 2010, Chang’an’s plan for micro-vehicle sales this year is to sell 1 million vehicles. However, as of September, micro-vehicles only sold 469,600 vehicles. The total sales of cars in the first 9 months of Chang’an were 1.267 million, which is also far out of reach for the annual target of 2.4 million.
This is the third consecutive quarter of Chang'an revenue and net profit have continued to decline, compared to the interpretation of the decline in micro-car, another data on the Changan financial report can better illustrate the problem: the net cash flow from investment activities from the same period last year - 5.88 Billion yuan to 2.914 billion yuan, a decrease of 395.19%, Chang'an explained that the main reason is the new fish mouth base and Beijing Chang'an project investment in fixed assets and purchase of Chang'an trademark.
Industry analysis indicates that the consequences of the large-scale expansion of Chang’an are emerging. One of the most intuitive statistics is that the total investment of Changan's new projects in 2010 was more than 10 times its 2009 profit. In 2009, the total profit of Changan Automobile was 2.383 billion yuan. In 2010, the total investment of Chang'an Automobile was only 25 billion yuan in Shenzhen, Hefei, and Dingzhou, Hebei, and Beijing. This means that under the premise that Changan maintains its profitability in 2009, it is necessary to invest the profit for the next 10 years to ensure the expansion of these dozens of production capacity and bases.
However, as of the end of September, the total profit of Changan Automobile this year was only 931 million yuan, which was a drop of 45% compared with the 1.7 billion yuan in the same period of last year.
In the face of the “accusations†of the industry, Xu Liuping, chairman of Chang’an Automobile, responded with “these investments are not one-time expenditures but rolling investmentâ€. However, in this year of 2011, Chang’an still needs to spend more than 100 million yuan to maintain the construction of expansion projects. The “long-term pain†effect caused by this “rolling investment†is equally difficult to cope with.
From the financial data point of view, the only fortunate thing is that its total asset-liability ratio is still within 60%, and it is down compared with the same period of last year. However, a careful analysis of its capital composition reveals that the increase in total assets is based on frequent acquisitions and expansion. The ratio of current assets to current liabilities that better shows the company's cash flow status is not optimistic. The financial report shows that as of the end of September, the current liabilities of Changan Automobile have reached 17.3 billion yuan, which exceeds the total current assets of 15.5 billion yuan.
The Chang'an Financial Report presents a company that is under tremendous cash flow pressure and has a very high capital chain risk. The financial report shows that the 3.445 billion yuan raised from the issuance of A-shares at the beginning of the year was the most important financing activity in the first three quarters of Chang'an, and was also the only item of growth for the four cash flow projects in the first three quarters. Affected by the decline in sales volume, cash flow from operating activities in the first three quarters of Changan fell from RMB 4.15 billion in the same period last year to RMB 1.39 billion, a drop of 66.67%.
However, this financing did not solve the financial crisis of Chang’an. In order to raise more funds, from July to September this year, Chang’an continuously received 7 batches of funds and brokers who came to “understand the company’s businessâ€, but this also failed. To prevent brokerage companies from "early warning" of their risks. It is reported that a number of securities agencies currently re-evaluate Chang'an, in which CICC gives Chang'an "prudentially recommended" rating, and Southwest Securities cut its rating to "neutral" when Chang'an Zhongbao was released. He said that "neutral" has already reminded him to be cautious, and further down is "avoidance."
Also in the third quarter, FAW sedan was the sounding loss warning. The financial report shows that FAW Car had a net loss of 49.9 million yuan in the third quarter. It is expected that the profit for 2011 will be between 372 million and 930 million yuan, a sharp drop of 50%-80% from the same period of last year. FAW Car said that a series of factors such as the tightening of monetary policy, rising costs, and the withdrawal of incentive policies have caused the company's products to have a greater impact.
According to the FAW Car Financial Report, its prepayments increased from RMB 61.6 million at the beginning of the year to RMB 520 million at the end of the third quarter, an increase of up to 752%, mainly due to the increase in prepayments for prepayments for construction projects under construction and procurement of imported parts for the end of the third quarter. To. In August this year, under the huge financial pressure, FAW Car announced that it will spend 3.5 billion yuan to launch the three major vehicle projects and capacity expansion projects.
It is worth noting that Changan and FAW Cars also expected the overall listing. One consensus is that when the expansion of "Dachang" and "Da Yi Qi" was given special significance, risk control became vulnerable. Liu Feng also said that in terms of long-term planning, the expansion of Changan and FAW does have attractive profit expectations. However, with the cooling of the market and the tightening of the capital chain, the capital pressure for subsequent investment is likely to become another "lethal" "straw" besides the decline in sales volume.
寅 寅 å¯ å¯ ä¸Ž 与 与 与 与 é•¿ 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一. BYD's net profit fell by 85% in the first three quarters. JAC's and FAW Xiali's third-quarter net profit fell by 87% and 62% respectively.
Among these companies, BYD’s cash flow pressure is greatest. In the first half of this year, the projects that were still under construction include eight industrial parks, three new factories, and overseas investment, involving a total investment of 7.4 billion yuan. The total amount of other investment projects that have been promised is close to 10 billion yuan. As of the end of September, BYD’s net profit was only 352 million yuan.
The latest disclosed three quarterly reports show that BYD’s asset-to-liquidity ratio remains high this year: current assets are only 19.836 billion yuan, while current liabilities are as high as 31.016 billion yuan.
Jianghuai Automobile is also highly indebted. As of the end of September this year, its current assets were 9.704 billion yuan while its current liabilities reached 10.989 billion yuan.
The deteriorating corporate overall funding situation has also led to difficulties in financing. This year, whether it was the issuance of Changan at the beginning of the year or the return of the Great Wall to the A-shares and the fall of the BYD A-shares after their listing, to a certain extent, In the first two years of impulsive and blind expansion.
According to industry insiders who have long studied the growth model of auto companies, due to the fact that these capacity expansion plans were made in the context of the good auto market conditions in the past year, in this year’s reverse market environment, overdrafts in the first two years are inevitable. This translates into unsustainable financial pressure on companies.
At the same time, the importance of government subsidies for the profitability of auto companies has been unprecedented in this year under the dual pressure of increasing pressure on large-scale investment and major decline in sales revenue.
In the third quarter, non-operating income of Changan Automobile soared from RMB 11.74 million to RMB 126 million, an increase of 971%. The main source of this growth is the financial subsidies of 90.64 million yuan, and BYD has accounted for 28.15% of the net profits of government subsidies in the past three years, but in the first half of this year, the government subsidies of 153 million yuan were in the current net profit. The proportion of up to 55.71%.
Liu Feng stated that obtaining government subsidies can be seen as an affirmation of the company's future growth, but when this portion of subsidies accounts for a large proportion of profits, it also reflects the low profitability of enterprises at this stage.
In addition, the reliance on the profit-sharing of the joint venture company is another serious flaw exposed by the auto makers.
In the third quarter of this year, Changan Ford Mazda and Jiangling Holdings’ two joint ventures “turned in†Changan’s investment income was only 180 million yuan, a decrease of 58.62% year-on-year, which is one of the main reasons for Chang’an losses. FAW Xiali also suffered a sharp decline in profits due to the lower profit contribution of FAW Toyota.
Obviously, car companies did not nurture their own profitability while they were impulsively expanding. Statistics show that although Changan’s own-brand sales have increased, the gross profit margin in the third quarter still fell to 13.18% in recent years. The gross profit margin of FAW Car also decreased from 11.3% in the same period last year to 11.9%.
In Liu Feng’s view, “the profitability of auto companies has not yet shifted from a policy-driven approach to an intrinsically autonomous growth approachâ€, which obviously does not have sustainable development.
In the middle of this year, the responsible person of the Ministry of Industry and Information Technology has made it clear that the government will not take the initiative to “rescue the market.†Therefore, in 2012, how to repair the capital chain in the self-financing model will be a major issue for the entire industry.
It is not just the two state-owned enterprises that are eager to be listed on the market. Changan and FAW sedan only SAIC and Great Wall Motor have maintained their upward momentum in the first three quarters. While most of the auto companies' profits have fallen to the lows in recent years, unprecedented pressure on corporate cash flow has also been clearly "drying" in the sun after the policy umbrella has been retired.
This is the "exemption of preferential policies, rising costs, sales decline," and other external factors written into the financial report can not be fully explained. However, Changan's nearly 30 billion yuan in 2010 crazy investment and FAW Group rush to the overall listing of independent capacity expansion may be able to respond to the current car company's current capital chain crisis.
"The large-scale rolling investment will inevitably bring a heavy financial burden to the company's subsequent development." Southwest Feng Securities analyst Liu Feng pointed out that the domestic car companies obviously have not prepared for the "2010 Carnival Season" that will surely end. The lack of internal profitability and the fund overdraft under blind expansion have already laid the foundation for the “dead seasonâ€.
Unprecedented cash flow pressures entered into 2011, and monthly sales of Changan Automobile all the way down, finally losing money in the third quarter of “Jin 9 Silver Tenâ€. Chang'an Auto's third-quarter financial report showed that its net profit was -144 million yuan, a year-on-year decline of 140%. In 2009, Changan Automobile's net profit surged 43% year-on-year, and it also climbed 80% year-on-year in 2010.
Changan Automobile explained that the decline in profit was mainly due to the decline in mini vehicle sales. Stimulated by the mini vehicle sales boosted by the small-displacement policy in 2010, Chang’an’s plan for micro-vehicle sales this year is to sell 1 million vehicles. However, as of September, micro-vehicles only sold 469,600 vehicles. The total sales of cars in the first 9 months of Chang’an were 1.267 million, which is also far out of reach for the annual target of 2.4 million.
This is the third consecutive quarter of Chang'an revenue and net profit have continued to decline, compared to the interpretation of the decline in micro-car, another data on the Changan financial report can better illustrate the problem: the net cash flow from investment activities from the same period last year - 5.88 Billion yuan to 2.914 billion yuan, a decrease of 395.19%, Chang'an explained that the main reason is the new fish mouth base and Beijing Chang'an project investment in fixed assets and purchase of Chang'an trademark.
Industry analysis indicates that the consequences of the large-scale expansion of Chang’an are emerging. One of the most intuitive statistics is that the total investment of Changan's new projects in 2010 was more than 10 times its 2009 profit. In 2009, the total profit of Changan Automobile was 2.383 billion yuan. In 2010, the total investment of Chang'an Automobile was only 25 billion yuan in Shenzhen, Hefei, and Dingzhou, Hebei, and Beijing. This means that under the premise that Changan maintains its profitability in 2009, it is necessary to invest the profit for the next 10 years to ensure the expansion of these dozens of production capacity and bases.
However, as of the end of September, the total profit of Changan Automobile this year was only 931 million yuan, which was a drop of 45% compared with the 1.7 billion yuan in the same period of last year.
In the face of the “accusations†of the industry, Xu Liuping, chairman of Chang’an Automobile, responded with “these investments are not one-time expenditures but rolling investmentâ€. However, in this year of 2011, Chang’an still needs to spend more than 100 million yuan to maintain the construction of expansion projects. The “long-term pain†effect caused by this “rolling investment†is equally difficult to cope with.
From the financial data point of view, the only fortunate thing is that its total asset-liability ratio is still within 60%, and it is down compared with the same period of last year. However, a careful analysis of its capital composition reveals that the increase in total assets is based on frequent acquisitions and expansion. The ratio of current assets to current liabilities that better shows the company's cash flow status is not optimistic. The financial report shows that as of the end of September, the current liabilities of Changan Automobile have reached 17.3 billion yuan, which exceeds the total current assets of 15.5 billion yuan.
The Chang'an Financial Report presents a company that is under tremendous cash flow pressure and has a very high capital chain risk. The financial report shows that the 3.445 billion yuan raised from the issuance of A-shares at the beginning of the year was the most important financing activity in the first three quarters of Chang'an, and was also the only item of growth for the four cash flow projects in the first three quarters. Affected by the decline in sales volume, cash flow from operating activities in the first three quarters of Changan fell from RMB 4.15 billion in the same period last year to RMB 1.39 billion, a drop of 66.67%.
However, this financing did not solve the financial crisis of Chang’an. In order to raise more funds, from July to September this year, Chang’an continuously received 7 batches of funds and brokers who came to “understand the company’s businessâ€, but this also failed. To prevent brokerage companies from "early warning" of their risks. It is reported that a number of securities agencies currently re-evaluate Chang'an, in which CICC gives Chang'an "prudentially recommended" rating, and Southwest Securities cut its rating to "neutral" when Chang'an Zhongbao was released. He said that "neutral" has already reminded him to be cautious, and further down is "avoidance."
Also in the third quarter, FAW sedan was the sounding loss warning. The financial report shows that FAW Car had a net loss of 49.9 million yuan in the third quarter. It is expected that the profit for 2011 will be between 372 million and 930 million yuan, a sharp drop of 50%-80% from the same period of last year. FAW Car said that a series of factors such as the tightening of monetary policy, rising costs, and the withdrawal of incentive policies have caused the company's products to have a greater impact.
According to the FAW Car Financial Report, its prepayments increased from RMB 61.6 million at the beginning of the year to RMB 520 million at the end of the third quarter, an increase of up to 752%, mainly due to the increase in prepayments for prepayments for construction projects under construction and procurement of imported parts for the end of the third quarter. To. In August this year, under the huge financial pressure, FAW Car announced that it will spend 3.5 billion yuan to launch the three major vehicle projects and capacity expansion projects.
It is worth noting that Changan and FAW Cars also expected the overall listing. One consensus is that when the expansion of "Dachang" and "Da Yi Qi" was given special significance, risk control became vulnerable. Liu Feng also said that in terms of long-term planning, the expansion of Changan and FAW does have attractive profit expectations. However, with the cooling of the market and the tightening of the capital chain, the capital pressure for subsequent investment is likely to become another "lethal" "straw" besides the decline in sales volume.
寅 寅 å¯ å¯ ä¸Ž 与 与 与 与 é•¿ 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一 一. BYD's net profit fell by 85% in the first three quarters. JAC's and FAW Xiali's third-quarter net profit fell by 87% and 62% respectively.
Among these companies, BYD’s cash flow pressure is greatest. In the first half of this year, the projects that were still under construction include eight industrial parks, three new factories, and overseas investment, involving a total investment of 7.4 billion yuan. The total amount of other investment projects that have been promised is close to 10 billion yuan. As of the end of September, BYD’s net profit was only 352 million yuan.
The latest disclosed three quarterly reports show that BYD’s asset-to-liquidity ratio remains high this year: current assets are only 19.836 billion yuan, while current liabilities are as high as 31.016 billion yuan.
Jianghuai Automobile is also highly indebted. As of the end of September this year, its current assets were 9.704 billion yuan while its current liabilities reached 10.989 billion yuan.
The deteriorating corporate overall funding situation has also led to difficulties in financing. This year, whether it was the issuance of Changan at the beginning of the year or the return of the Great Wall to the A-shares and the fall of the BYD A-shares after their listing, to a certain extent, In the first two years of impulsive and blind expansion.
According to industry insiders who have long studied the growth model of auto companies, due to the fact that these capacity expansion plans were made in the context of the good auto market conditions in the past year, in this year’s reverse market environment, overdrafts in the first two years are inevitable. This translates into unsustainable financial pressure on companies.
At the same time, the importance of government subsidies for the profitability of auto companies has been unprecedented in this year under the dual pressure of increasing pressure on large-scale investment and major decline in sales revenue.
In the third quarter, non-operating income of Changan Automobile soared from RMB 11.74 million to RMB 126 million, an increase of 971%. The main source of this growth is the financial subsidies of 90.64 million yuan, and BYD has accounted for 28.15% of the net profits of government subsidies in the past three years, but in the first half of this year, the government subsidies of 153 million yuan were in the current net profit. The proportion of up to 55.71%.
Liu Feng stated that obtaining government subsidies can be seen as an affirmation of the company's future growth, but when this portion of subsidies accounts for a large proportion of profits, it also reflects the low profitability of enterprises at this stage.
In addition, the reliance on the profit-sharing of the joint venture company is another serious flaw exposed by the auto makers.
In the third quarter of this year, Changan Ford Mazda and Jiangling Holdings’ two joint ventures “turned in†Changan’s investment income was only 180 million yuan, a decrease of 58.62% year-on-year, which is one of the main reasons for Chang’an losses. FAW Xiali also suffered a sharp decline in profits due to the lower profit contribution of FAW Toyota.
Obviously, car companies did not nurture their own profitability while they were impulsively expanding. Statistics show that although Changan’s own-brand sales have increased, the gross profit margin in the third quarter still fell to 13.18% in recent years. The gross profit margin of FAW Car also decreased from 11.3% in the same period last year to 11.9%.
In Liu Feng’s view, “the profitability of auto companies has not yet shifted from a policy-driven approach to an intrinsically autonomous growth approachâ€, which obviously does not have sustainable development.
In the middle of this year, the responsible person of the Ministry of Industry and Information Technology has made it clear that the government will not take the initiative to “rescue the market.†Therefore, in 2012, how to repair the capital chain in the self-financing model will be a major issue for the entire industry.
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