How to become the most profitable car company in China? SAIC Group's 2017 Net Profit Increases by 2.2 Billion Yuan


On January 19, SAIC Motor announced its 2017 annual earnings advancement announcement. According to the announcement, the SAIC Group's net profit attributable to shareholders of the listed company for the year of 2017 was approximately 34.2 billion yuan, an increase of approximately 2.2 billion yuan compared with the same period of last year (approximately 32 billion yuan), an increase of approximately 7% year-on-year. The net profit after deducting non-recurring gains and losses from shareholders of listed companies was approximately 32.7 billion yuan, which represented an increase of approximately 2.4 billion yuan compared with the same period of last year, an increase of approximately 7.8% year-on-year.

上汽集团2017年净利,上汽集团2017年业绩,车企财报

SAIC Group's 2017 Annual Results Forecast Announcement

The announcement pointed out that SAIC Motor’s ability to achieve the above results in 2017 was a major reason for the good sales performance during the year.

In the first half of 2017, under the general downturn of the auto market, although SAIC Motor Group's sales fluctuate greatly, the overall performance is still very bright. During this period, sales of 3.175 million units were achieved, an increase of 5.8% year-on-year, which also made Its first-half results are still considerable. According to the data, SAIC Group achieved total operating revenue of 396.046 billion yuan in the first half of 2017, an increase of 12.85% year-on-year; net profit reached 15.958 billion yuan, an increase of 5.96%, exceeding Dongfeng Motor Group (net profit of 7.037 billion yuan) and GAC Group (net Profit of 6.183 billion yuan) The sum of the two companies has once again become the most profitable listed car company in China.

In the second half of the year, with the advent of the "Golden September and September 10" and the recovery of 10% recovery in the purchase tax of small-displacement vehicles in 2018, and with the help of various car sales promotions of its own car companies, SAIC Motor sales exceeded that in the second half of the year. In half a year, the Group's total annual sales in 2017 reached 6.93 million units, representing a year-on-year increase of 6.8% from the cumulative sales in 2016.

上汽集团2017年净利,上汽集团2017年业绩,车企财报

Judging from its car companies, SAIC's SAIC-Volkswagen, SAIC-GM, Shanghai-Wuxing, and SAIC passenger vehicles all achieved positive sales growth in 2017. Among them, although the joint venture was slightly weak, the performance of SAIC Motor’s own-brand passenger car was very strong. In 2017, the cumulative sales reached 522,000 vehicles. Although it did not reach its previous sales target of 600,000 units, it was completely flat compared to 2016. More than 200,000 vehicles were added, with a growth rate of 62.27%.

Since 2017, SAIC Motor Corporation has been able to say that there are concerns. In this year, two joint ventures were set up between SAIC and Ningde to target the new energy automotive market; strategic cooperation with China Mobile and Huawei was achieved, and the next-generation car networking smart travel service was made available; a strategic cooperation agreement was signed with Chinalco. To jointly promote the industrialization cooperation of the new type of aluminum applications... On the basis of the previous business, SAIC Motors will further increase its efforts in terms of “electricalization, networking, intelligence, and sharing”, and its future performance is worth looking forward to. On the other hand, the performance of its joint-venture car companies is still weak, and the loss of talents of some senior executives also brings them “small worries”.

It is worth noting that the China Association of Automobile Manufacturers recently released a prediction report on the Chinese automobile market in 2018. The report shows that next year the Chinese auto market will continue to grow slowly. The annual sales of automobiles are 29,870, up 3% year-on-year. . It is not difficult to find through the understanding that relevant agencies are relatively conservative in their expectations of the auto market in 2018, and generally do not give too high expectations for the growth rate of automobile production and sales during the year. In 2017, when the Group has already performed and the above market conditions, what kind of planning will SAIC Group have for 2018? How will it behave again?



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