Loss of billions of dollars in Changan’s autos

Chairman Xu Liuping, who wants to create “Great Chang’an,” may not have expected that the industry’s situation will turn so fast this year, and the mini vehicle’s prosperity will never return. In the first nine months of this year, it won the lead for Chang’an Automobile. "The sales volume of mini-cars with a reputation dropped by nearly 25%. What's even more puzzling is that after experiencing the crazy investment last year, the company's financial burden began to become apparent.

In the third quarter, the net loss was 142 million yuan. Until November 7, the announcement of Chongqing Changan Automobile Co., Ltd. still showed that the company's stocks Changan Automobile (000625.SZ) and Changan B (200625.SZ) continued to be suspended. Changan Automobile stated that the company is currently planning a B-share repurchase issue. "The company's shares have continued to be suspended due to significant uncertainty in the progress of the matter." From October 17th, Changan Automobile (000625.SZ) and Changan B (200625.SZ) have been suspended for nearly a month due to the temporary suspension of “unexpected major issues”.

Coincidentally, in 2008, the same day, Changan Automobile said that it was suspended for planning major events. On February 16 of the following year, Changan Automobile resumed trading and announced B share repurchase program. As a result, share prices of A-shares and B-shares soared, and A-share prices also soared. The outstanding performance of the daily limit of seven consecutive days. Some securities analysts pointed out that the current situation is similar to three years ago. Changan Motors believes that the current B-share price is underestimated, which has seriously affected the image of listed companies and started the repurchase of B-shares. According to statistics, as of July of this year, Changan B shares had issued 107,358.26 million shares, accounting for 22.21% of the total share of Changan.

On the trading day before the suspension (October 14th), Changan B shares closed at HK$2.26 per share, which was calculated at the exchange rate of the current day and was equivalent to approximately RMB1.85 per share. In the A-share market, the closing price of Changan Automobile was RMB4.39 per share. . On the same day, the Changan B stock market has a net margin of 0.4 and a price-earnings ratio of 10, which is significantly lower than the 0.78 and the price-earnings ratio of the Changan Auto A-share market.

In fact, in the A and B shares markets, Changan Automobile has continued to decline this year. Among them, Changan B shares fell from 3.586 yuan on January 4, 2011 to 2.260 yuan before the suspension on October 14, 2011, a decrease of 36.98%. During the same period, Changan Automobile in the A-share market also experienced a larger drop, falling from RMB5.35 per share to RMB4.39, a decrease of 17.94%.

Micro-vehicle downtrend obviously repurchasing B-shares may bring a new round of uptrend, but the performance report released by Changan Automobile last month is hard to let investors relax. The third-quarter financial report showed that total operating income exceeded 5 billion yuan, a year-on-year decrease of 18.59%, and net profit attributable to shareholders of listed companies showed a loss of more than 142 million yuan, a sharp drop of 140.4% from the same period of last year. From January to September this year, operating income fell 14.21% to 19.6 billion, and net profit fell 47.79% to 897.6 million. Last year, Changan Automobile's profit grew by more than 80%, and in 2009 it was 43 times higher.

For a sharp reduction in profits, companies quickly found the reason—microcar sales fell. The data shows that in the first nine months of this year, Changan Automobile sold 1,257,154 vehicles, a year-on-year decrease of 6.02%. The decline in mini vehicle sales reached 24.95% (469,647 units), compared with 18.03% (155,816 units) of self-owned cars that accounted for less than 13% of total sales. The shrinking of the advantages of mini-vehicles has also led to a slowdown in the integration of Changan’s micro-vehicle system. The new plan for the Hafei brand, which was originally planned to be announced in October, has also been forced to postpone until the first half of next year.

The withdrawal of policies such as automobile going to the countryside has made the “car”, which has been very hot, vulnerable, and it is not the Chang’an car family’s distress that the mini vehicle growth is under pressure. From January to September this year, the sales of passenger cars in China reached 10,537,800 units, a year-on-year increase of 6.38%. Only the micro-vehicles in each category declined, and the market underperformed the market. In the 3/4 time this year, the sales of basic passenger cars (sedans) reached 7,384,400, an increase of 8.58% year-on-year; the sales of multi-function passenger cars (MPVs) reached 368,400, an increase of 14.91% year-on-year; sports utility vehicles The sales of vehicles (SUVs) reached 1.14 million, an increase of 17.64% year-on-year, and the sales of crossover passenger vehicles (micro-vehicles) was 1.674 million, a decrease of 9.00% year-on-year.

Some analysis reports pointed out that although Changan Automobile’s own-brand sedan sales increased by 18.03% year-on-year, it mainly came from Benben mini and the product structure had a downward trend. CIGC’s research report in August pointed out that the micro-customer business of Changan Automobile's headquarters was dragged down by policy withdrawal and increased competition in the industry. Short-term sales are unlikely to improve significantly. At the same time, the product structure of self-owned brand sedan business is low-end, and costs and competitive pressures are also Gradually increase.

Entering the 2.4 million in the Blue era is Xu Liuping's sales target for Changan Automobile this year. However, only 52% of the completion rate so far seems to indicate the difficulty of achieving compliance. It seems that it must also be expected that the joint venture brand will have in the remaining three months. Better performance. In the past nine months, sales of Changan Ford Mazda reached 30,500 units, and Changan Suzuki also had 169,907 vehicles, which was an increase compared to the same period of last year.

Although the current joint venture Chang'an PSA has not yet produced a work, the joint venture company will introduce DS series products to China and launch a unique brand of the joint venture company in the future, which will undoubtedly increase the number of chips in Changan Automobile's hands. The joint venture company also brought Changan Automobile a 200,000 vehicles and 200,000 engines. With the introduction of Changan Ford's new plant and the introduction of the new generation of Fox, the performance of the Changan Automobile Joint Venture next year is expected and it is expected to stimulate sales and profit growth.

In terms of self-owned brand cars, in order to enhance its image, the company is committed to creating a sedan movement based on Changan Automobile's new C platform. This car completed the world premiere at the 64th Frankfurt International Motor Show in September. This is also Changan Automobile. It first appeared on the stage of this kind of international A-class auto show.

The three-year research and development of Yat is the first strategic model of Changan Automobile's collection of global vehicle manufacturing wisdom. In terms of design, the vehicle modelling uses the sharp design concept of the Chang'an Italian Design Center. The interior style is integrated with the Italian center. Fashion, the exquisiteness of the center of Japan, and the atmosphere of the Chinese center. In terms of power, it is equipped with a 1.6L self-ignition and inhalation engine and a 1.5L turbocharged engine in the latest "Blue Core" powertrain series from Changan. The power is increased to 81KW and the CO2 emission is ≤ 120g/Km.

"Blue Core" is a brand new power brand to be launched by Changan Automobile. It includes advanced internal combustion engine technology, hybrid power, development of fuel cells and zero-emission clean energy technologies. It also covers power technology development of AT, CVT, and DCT. , STT and other advanced power transmission technology. At present, Blue International has already taken the lead in entering the Blue era with international brands such as "Blue Motion" and "Blue Efficiency." Changan Automobile's "BlueCore" power brand strategy is expected to be officially announced at the upcoming Guangzhou Auto Show. Xu Liuping said: "Energy-saving and environmental protection technologies are the core and key focus of Changan's core. Changan is developing new types of engines, new energy-saving and environmental-protected vehicles, and pure electric vehicles, which can reduce the average fuel consumption by 30% in five years and reduce carbon dioxide emissions. 35%.”

At present, at the Yuzui base in Chongqing's Liangjiang New Area, Chang'an is building China's largest green small-displacement engine base. It is expected that the total production capacity will reach 2 million units after full production.