BAIC Motor reports profit of RMB4.083 billion, down by 7.8%

Shanghai (Gasgoo)- BAIC Motor, BAIC Group's Hong Kong listed subsidiary, announced its 2019 net profit attributable to equity holders slid 7.8% from the year-ago period to RMB4.083 billion, and the basic earnings per share dropped 9.1% to RMB0.5.

The company imputed the downturn to the decrease in the profits of Beijing Brand and certain investment enterprises resulting from the fiercer competition in the domestic PV industry and the market downturn.

Its full-year revenue of 2019 reached RMB174.633 billion, a year-on-year increase of 15%, mainly thanks to the increase in revenue from Beijing Benz and Beijing Brand.

（Photo source: Beijing Benz)

Revenue of Beijing Benz jumped 14.6% from a year ago to RMB155.154 billion in 2019, mainly attributable to a year-on-year growth of 17% in the brand's sales volume, while the increase in the proportion of the lower-priced vehicle models’ sales volume partly offset the overall sales growth.

The gross profit of the largest revenue contributor amounted to RMB42.215 billion in 2019, growing 4.2% over the previous year. Nonetheless, Beijing Benz's gross profit margin declined to 27.2% from 29.9% in 2018, mainly due to the rising proportion of the sales volume of vehicle models with lower gross profit.

(Photo source: BAIC Motor)

Beijing Brand earned RMB19.479 billion in annual revenue, a year-over-year increase of 18%. The financial results showed the brand saw its sales volume climb 6.9%, and the larger proportion of higher-priced models’ volume led to a greater increase in the revenue than in the sales. Nevertheless, the drop in NEV subsidies to some degree counteracted the revenue growth. Its gross loss was widened to RMB4.728 billion from RMB3.516 billion in 2018, mainly because of the increased vehicle promotions and the impacts of NEV subsidy phase-out.

The automaker said its four business segments—Beijing Brand, Beijing Benz, Beijing Hyundai, and Fujian Benz—sold a total of 1.425 million vehicles last year, a year-over-year growth of 2.4%.