BAIC Motor posts 14.1% growth in first-half revenue, while net profit slides

Shanghai (Gasgoo)- BAIC Motor Corporation Limited (BAIC Motor) reported a year-on-year jump of 14.1% in the first-half revenue, while its semi-annual net profit slumped 25.9% from a year ago.

According to the automaker's interim report, BAIC Motor's revenue for the first half of 2019 amounted to RMB87.764 billion, and its profit attributable to equity holders reached RMB2.09 billion.

(Photo source: BAIC Motor)

Basic earnings per share dropped to RMB0.25 from RMB0.36 for the six months ended June, 2018.

The automakers said the revenue growth was mainly attributed to the increase in the revenue of Beijing Benz and Beijing Brand.

(Photo source: Beijing Benz)

In the first half of 2019, the revenue related to Beijing Benz rose 10.8% over the previous year to RMB77,807.4 million, primarily thanks to a year-on-year growth of 11.9% in Beijing Benz sales volume, while the increase in the proportion of the sales volume of lower-priced models partially offset the rise in total sales volume.

(Photo source: BAIC Motor's WeChat account)

Besides, the first-half revenue associated with Beijing Brand reached RMB9,956.6 million, surging 49% from the prior-year. BAIC Motor said Beijing Brand posted a year-on-year increase of 12.2% on Jan.-Jun. sales volume, while the rise in the percentage of the sales volume of higher-priced models led to the revenue growth exceeding the sales volume growth. However, the decrease in NEV subsidies partially counteracted the revenue increase.

(Photo source: Beijing Hyundai)

The decline in BAIC Motor's net profit attributable to shareholders and basic earnings per share were primarily caused by the reduction in profits of Beijing Hyundai and relevant supporting companies arising out of intensified competition in China's PV industry and the overall market downturn of Korean-brand vehicles.

Under the pressure of cloudy market climate and the adjustment of several industrial regulation policies, in the second half of 2019, the Beijing-based automaker will continue to strengthen the new product launching for respective brands.

Beijing Benz plans to launch various products including the long-wheelbase GLC SUV facelift vehicle model, the new GLB SUV, EQC pure electric SUV and the A35-L AMG in the second half of the year. In addition, Beijing Hyundai is ready to roll out such products as the ENCINO pure electric vehicles, the new ix25 SUV, the new Verna sedan, the tenth-generation Sonata sedan and the LA FESTA pure electric vehicle model, the company said.