2019Q3 net profit increased by 198.7%, Jiangling’s downhill road stopped

Jiangling temporarily stopped its decline. On October 23, 2019, Jiangling Motors announced its third quarter report for 2019. The report shows that Jiangling's revenue in the third quarter of 2019 was 6.69 billion yuan, a year-on-year increase of 13.3%; net profit was 100 million yuan, a year-on-year increase of 198.7%; it achieved vehicle sales of 66,000 units, a year-on-year increase of 15.7%. Jiangling's current situation is not good. Since Q1 2018, Jiangling's revenue has been worrying, and its net profit has continued to decline. Among them, it suffered a loss of 230 million yuan in the second half of 2018, and its net profit plummeted 264.5% year-on-year. In the first half of 2019, Jiangling Motors' net profit was 60 million yuan, and its loss situation was alleviated, but its net profit still fell 81.5% year-on-year. In its annual report for the first half of 2019, Jiangling announced that Jiangling Holdings would be split into two companies and establish two companies, Jiangling Investment and Jiangling Holdings (the surviving company). Jiangling Investment holds 41.03% of Jiangling Motors' shares, and Landwind Motors and other companies were paid by Jiangling Holdings (the surviving company). In the bag. At the time of sluggish performance and corporate structural adjustment, the industry generally looked down on Jiangling. However, Jiangling handed over a net profit of 100 million yuan in 2019Q3. Yiou Automobile believes that this is related to the suppression of the sales decline of Jiangling Motors. Except for 2018Q2, Jiangling Motors' sales have been declining year-on-year since 2018Q1. Among them, sales in Q3 2018 fell to the bottom of 57,000 vehicles. In the first half of 2019, Jiangling Motors sold 137,000 vehicles, still down 7.3% year-on-year. Until Q3 2019, Jiangling Motors sold 66,000 vehicles, a year-on-year increase of 15.7%, and the sales decline was suppressed. The increase in JMC's sales relies heavily on the performance of Ford Territory. The Ford Territory, launched in early 2019, has become JMC’s flagship brand in the passenger car field. According to data from Car Owner Home, Ford Territory sold a total of 11,609 vehicles from July to September 2019. Although this result is not outstanding in the field of SUVs, it has made great progress compared to its predecessor Yusheng S330, which sold 2,866 units in the same period last year. The situation faced by Jiangling is still severe. In the first three quarters of 2019, JMC's sales expenses increased by 360 million yuan year-on-year, an increase rate of 49.1%; administrative expenses increased by 130 million yuan year-on-year, an increase rate of 25.2%. Jiangling Motors said in its financial report that the increase in sales expenses was mainly due to the increase in marketing expenses for Territory's launch, and the increase in administrative expenses was mainly due to personnel economic factors and the increase in Territory trademark usage fees. Territory, which contributes to JMC's sales, also brings cost pressure to JMC. Behind this is JMC's helplessness in transforming into passenger cars. In 1993, with light commercial vehicles as its business center, Jiangling became the first listed company in Jiangxi Province. However, Jiangling Motors quickly realized that the ceiling for commercial vehicles was low, so it vigorously promoted the "development of both commercial and passenger vehicles." In 1995, Jiangling Motors entered the SUV and MPV fields through the introduction of Ford. However, Jiangling Motors has been tepid in the field of passenger cars, and its SUV brand Yusheng has been lackluster since its launch in 2010. In 2016, the Yusheng brand's annual sales reached a peak of 37,300 units. In 2017, sales suffered a cliff-like decline. Last year, the annual sales volume was only 7,000 units. Territory has become the key for Jiangling to develop the passenger car field, but reducing sales and management costs has been put on the agenda. Jiangling’s new energy layout also faces challenges. From obtaining the qualification to produce new energy vehicles to forming a new energy alliance with Renault through capital increase, Jiangling New Energy has successively launched several new energy products such as Yizhi EV3, E400, and E200N. However, Jiangling New Energy, which mainly focuses on A0-class and below models, is difficult to cope with the decline in new energy subsidies and the consumption upgrade in the automobile market. How to survive the cold wave of new energy vehicles is Jiangling New Energy’s top priority. On the downhill road, Jiangling had not yet fully applied the brakes.Source: Yiou.com