The impact of Beijing Baowo’s bankruptcy weakens: Foton Motor’s third-quarter profit surged 107.26%

21st Century Business Herald reporter Du Qiaomei reported

On the evening of October 28, Beiqi Foton Motor Co., Ltd. (600166.SH, hereinafter referred to as “Foton Motor”) disclosed its financial report for the third quarter of 2022.

The financial report shows that in the third quarter of this year, Foton Motor’s operating income was 12.317 billion yuan, a year-on-year decrease of 3.9%; the net profit attributable to the parent was 22.8507 million yuan, a year-on-year increase of 107.26%, but the non-net profit was still a loss of 80.1935 million yuan.

Foton Motor stated in the announcement that under the background of the sluggish commercial vehicle market and the industry’s year-on-year decline, the continuous increase in net profit attributable to the parent company was mainly due to the year-on-year increase in the company’s overseas market and large and medium-sized passenger business during the reporting period. Factors such as chain cost reduction and efficiency increase measures to reduce expenses and the impact of Beijing Baowo related matters on the profit compared with the same period.

“During the reporting period, the company disclosed the “Progress Announcement on Property Preservation”, and the Beijing No. 1 Intermediate People’s Court ruled to seal up, detain or freeze the property under the respondent’s name with a total value of 1.457 billion yuan.” Foton Motor pointed out in the financial report .

On April 23 this year, Foton Motor disclosed the “Announcement on Beijing Baowo’s Receipt of the Court’s Ruling for Accepting the Bankruptcy Liquidation Application”, and the Beijing No. 1 Intermediate People’s Court ruled to accept Beijing Baowo’s bankruptcy liquidation application. However, as the current procedure has not yet been concluded, there is uncertainty about the result of the settlement of the company’s creditor’s rights.

In the first three quarters of 2022, Foton Motor’s operating income was 35.493 billion yuan, a year-on-year decrease of 20.68%; net profit attributable to the parent was 241 million yuan, a year-on-year decrease of 17.75%; non-net profit deducted was a loss of 7.1688 million yuan, a year-on-year increase of 83.55%.

Foton Motor stated that the decline in net profit attributable to the parent company was mainly due to a year-on-year decrease of 33.09% in sales from January to September 2022 (lower than the industry’s 34.2% decline), a year-on-year decrease in investment income from joint ventures and associates, and a decline in the fair value of financial assets held. Aspects of factors.

Since the beginning of this year, the risk of some chip shortages and mismatches, the pressure on the production cost of new energy vehicles, and weak consumption will continue to affect the production and sales of commercial vehicles.

According to data from the China Association of Automobile Manufacturers, from January to September 2022, the production and sales of commercial vehicles were 2.426 million and 2.484 million respectively, a year-on-year decrease of 32.6% and 34.2%, a decrease of 1.5 percentage points and 2 percentage points from January to August. . Based on the comprehensive judgment of the automobile market for the whole year, the China Automobile Association estimates that the annual sales of commercial vehicles will be 4 million, a year-on-year decrease of about 16%.

Affected by this, in the first three quarters of this year, Foton Motor’s cumulative sales volume was 360,000 units, a year-on-year decrease of 33.09%, especially for medium and heavy trucks and light trucks, which both experienced a decline of more than 30%; however, the sales of large and medium-sized passenger vehicles ushered in this year. A substantial increase.

Foton Motor once pointed out in the semi-annual report that the main reason for the increase in sales was that Beijing Public Transport focused on delivery in the first half of the year. In the next step, Foton Motor will strengthen the promotion of airport shuttles, vaccination vehicles, food trucks and other special vehicle products, and at the same time balance production capacity to ensure centralized delivery of orders in the second half of the year.

It is worth mentioning that although the overall commercial vehicle is sluggish, the new energy commercial vehicle market is booming, especially the promotion and application of hydrogen fuel commercial vehicles.

In the first three quarters of this year, Foton Motor’s cumulative sales of new energy models reached 13,900 units, a significant increase of 162.68% year-on-year. According to the new energy plan of Foton Motor, by 2025, the sales volume of new energy vehicles will reach 105,000, and the cumulative sales will be 250,000.