Blood transfusion subsidies can also be profitable for 85 listed companies

In 2016, the performance of listed companies in the automotive industry is booming. According to preliminary statistics of Wind data, as of yesterday, 85 auto companies in A shares disclosed their 2016 annual reports, and 82 companies were profitable. More noticeable is that BYD and Huayu Automotive have over 100 billion in revenue, and Great Wall Motor has a profit of over 10 billion.

However, the success of some car companies is due to government subsidies for "blood transfusions." The 200 million government subsidy for the Jinbei Automobile Group still suffered losses, and the Jianghuai Automobile and Ankai Passenger Cars profited from government subsidies.

Only three companies lost net profit last year

Over the past year, A-share car companies have created relatively bright results.

On March 30th, seven automakers such as Sinotruk, Huayu Automotive, and Jinbei Automobile also disclosed their 2016 annual reports. China National Heavy Duty Trucks and Huayu Automobiles have created a lot of profits.

According to the industry classification of Shenyin Wanguo, there are 135 listed companies in the A-share market (including auto parts and auto services). Wind data shows that as of yesterday, 85 car companies have disclosed last year's annual report.

The reporter found that 82 out of the 85 car companies had positive net profit attributable to shareholders of the parent company, of which 53 had net profits of over 100 million yuan, Jianghuai Automobile, China Power, Jiangling Motors, Weichai Power, Fuyao Glass, The net profit of Yutong Bus, BYD, Wah Yuen Automotive, Great Wall Motor and other companies surpassed 1 billion, BYD and Wah Yuen Automobile had a net profit exceeding 5 billion, and Great Wall Motor’s net profit reached 10.551 billion, making it the only company with a net profit of over 10 billion. In 2015, the only company with a net profit of over RMB 10 billion was SAIC Group, with a net profit of 29.794 billion and Changan Automobile's net profit of 9.953 billion. According to the information released by the two major car companies, Great Wall Motor will be the top three car companies in net profit last year.

In contrast, the three companies of Jinbei Auto, Jingu Auto, and *ST Tianyi suffered a net loss last year, Jinbei Auto and Jingu shares lost profits, and *ST Tianyi was a renewed loss.

The reporter found that although the amount of losses of *ST Tianyi was only RMB 4,189,000, it had been losing for two years and was a typical shell company. Looking back at its announcement, the company found that the company is advancing the reorganization. Beijing Berry and Kang Biotechnology Co., Ltd. will be listed on the backdoor.

Looking at the year-on-year growth rate of results, the performance of 11 companies such as Jinbei Auto, Jingu Auto, and Jiangling Auto was a negative growth. Among them, Jinbei Motors lost 683.03%, and Jingu Motor Co., Ltd. dropped 367.92%. The performance of the other 9 companies has fallen by less than 50%. However, except for Jiangling Motors, the rest are not vehicle manufacturers. Most of them belong to auto parts companies. For example, Songzhi’s products are automotive air conditioners and Terjia’s. The product is a retarder, and Dell's share product is a steering pump.

At the same time, there were 74 car companies with a year-on-year growth rate of 65. There were 65 companies with a growth rate of over 10%, and 23 companies with a growth rate of over 50%. There were 10 growth rates over doubled. Among them, Mengshi Technology has achieved a growth rate of 33 times, and Dongan Power, Ningbo Huaxiang and Yaxia Auto have achieved a net profit growth rate of more than twice that of the three companies.

Inquiries from the reporters found that among the companies whose net profit increased significantly year-on-year, the company was mainly auto parts companies such as lions, Ningbo Huaxiang, and Dongan Power.

Jia Xinguang, chief analyst of China Automotive Industry Consulting and Development Co., Ltd., publicly stated that last year, the entire auto parts industry faced "transformation pains" in the transformation and upgrading, and at the same time, its influence in the international auto market was gradually strengthened. Going overseas to build factories to expand production or merge and restructure into the European and American markets, the development of listed auto parts companies has shown an international development path.

Some companies rely on government subsidies to dress up performance

Although the overall performance of listed car companies is getting more and more popular, there are also factors behind the performance of government subsidies.

A reporter from Changjiang Business Daily found out that among the above 85 car companies, 42 companies received government subsidies last year. Among them, Jianghuai Automobile, Ankai Bus, BYD, Jiangling Motors, Yutong Bus, Jinbei Automobile and other six companies received government subsidies exceeding 100 million yuan.

Among the six companies, Jinbei Automobile, despite receiving government subsidies of 232 million yuan, still lost 208 million yuan. In fact, since 2013, the performance of Jinbei Auto has been unsatisfactory, and its deducted net profit has been a loss. There is no doubt that relying on the government's "transfusion" support.

Of note are Jianghuai Automobile and Ankai Bus. The controlling shareholders of these two companies are Jianghuai Automobile Group. They made profits through government subsidies last year.

The reporter found out that last year, the two companies received government grants of 3.985 billion and 1.972 billion respectively, totaling 5.957 billion, and the net profit of the two companies was 1.162 billion and 0.51 billion. Without subsidies, the two companies would have a loss of 2.823 billion yuan. 19.21 billion, a total of 4.744 billion.

On the other hand, Great Wall Motor, which has temporarily ranked first in net profit, did not receive government grants last year, and its significant increase in performance was due to growth in its main business. According to its annual report, last year, Great Wall Motor's total sales ranked seventh, of which, Haval SUV total sales of 938,000, an increase of 34%, won the market sales championship for 14 consecutive years; pickup truck sales total 105.56 million for 19 consecutive years Maintain sales first in the country.

More importantly, Great Wall Motor’s bicycle profits are also eye-catching. The annual report shows that the company sold a total of 1,074,500 vehicles last year. If other factors were excluded, the profit of bicycles was simply calculated. The profits of Great Wall Motor's bicycles amounted to 9,819 yuan, which means that the profit for each car sold is close to ten thousand yuan.