In 2019, JMC’s sales volume increased by 1.75% year-on-year.
Editor’s note: This article comes from “ Future Car Daily ” (WeChat public account ID: auto-time), author: Jiaoman Ting.
Author | Jiao Manting
Edit | Xu Yang
Without government subsidies, it may be difficult for a well-established commercial vehicle company JMC to achieve real profitability.
On the evening of March 25th, 2019 performance report shows that the operating income was 29.174 billion yuan, a year-on-year increase of 3.27%; the net profit attributable to shareholders of the parent company was 148 million yuan, a year-on-year increase of 60.96 %.
In the first three quarters of 2019, JMC’s net profit attributable to shareholders of listed companies was 158 million yuan, a year-on-year decrease of 27.93%. This means that JMC will recover its net profit decline in the fourth quarter of 2019. Regarding the reasons for the increase in performance, Jiangling Motors explained that “the increase in sales and the company’s proactive cost reduction and efficiency measures have brought about an increase in profitability.”
However, in the non-recurring profit and loss project, government subsidies brought 470 million yuan to JMC; the capital occupation fee charged to non-financial enterprises was 10.87 million yuan. After deducting non-recurring gains and losses, Jiangling Motors lost 308 million yuan, which increased 10.93% year-on-year.
On the opening of March 26, JMC’s stock price fell 1.65%. As of now, JMC’s stock price is 12.59 yuan / share, a slight drop of 0.94%, with a total market value of 10.868 billion yuan.
Public information shows that in 1993, JMC became the first listed company in Jiangxi Province and focused its business on the light commercial vehicle market. After commercial vehicles encountered the ceiling, it focused its business on the passenger car market.
In 1995, JMC introduced Ford and began producing Ford-brand commercial vehicles. In 2002, in order to develop its own passenger car brand, JMC and Ford jointly established JMC, officially launching the Yusheng brand SUV. At present, JMC Motors adopts the strategy of “combining commercial vehicles”.
Although Jiangling Motors outperformed the automobile market in the cold winter in 2019, it sold 290,058 vehicles throughout the year, up 1.75% year-on-year. But the proud Yusheng brand SUV’s sales decreased by 77.50% year-on-year to 1551 car.
This also means that JMC has adjusted its product structure. In 2019, in terms of sales volume, 97,000 JMC series trucks; 59,000 JMC series pickups; 52,000 SUVs; 46,000 Ford Transit series commercial vehicles; and 36,000 JMC brand light buses.
“R & D expenditures to enhance competitiveness will ensure the company’s future sales and profitable growth,” Jiangling Motors wrote in its annual report. In 2019, JMC’s R & D expenditure was 1.937 billion yuan, accounting for 6.64% of operating income, and this proportion slightly increased compared to 6.14% in 2019. There are 2,758 R & D personnel, accounting for 18.65% of the total.
JMC expects that due to the impact of the epidemic, automobile sales in the first quarter of 2020 will decline significantly. In addition, in the context of the outbreak of the new crown pneumonia, the ride-hailing service has been greatly impacted. As new energy vehicles are an important model of Internet-linked vehicles, the epidemic will inevitably lead to a sharp decline in demand for new energy vehicles in the short term.
In 2020, Jiangling Motors plans to sell 331,000 vehicles with operating income of about 32 billion yuan, up 14% and 10% respectively from 2019.
In the field of new energy technology, Jiangling Motors stated that it will vigorously promote the development and sales of pure electric vehicles based on commercial scenarios, and develop hydrogen fuel and methanol fuel vehicle technologies with advantageous partners.
