In the face of the challenges of rising raw materials and the epidemic, GAC Group still demonstrated strong operating capabilities.
On the evening of October 27, GAC Group released its third-quarter performance report. The data shows that GAC Group achieved operating income of 31.527 billion yuan in the third quarter, an increase of 24.6% month-on-month and a year-on-year increase of 51.58%; net profit attributable to the parent was 2.312 billion yuan, a year-on-year increase of 144.07%. %, attributable to the parent and deducting non-net profit of 2.087 billion yuan, a year-on-year increase of 292.70%. In the first three quarters, the consolidated operating income was 79.976 billion yuan, a year-on-year increase of 45.10%; the net profit attributable to the parent was 8.062 billion yuan, a year-on-year increase of 52.59%; the non-net profit attributable to the parent was 7.728 billion yuan, a year-on-year increase of 68.87%.
Regarding the increase in performance, GAC Group stated that the main reason for the increase in revenue during the reporting period was the significant increase in the sales of self-owned brand vehicles compared with the same period last year. In particular, the cumulative sales volume of “Aian” new energy vehicles exceeded 180,000 this year, a year-on-year increase of 132.09%. .
Steady growth in sales volume and significant increase in gross profit margin
In fact, although my country’s auto sales have shown a growth trend this year, the growth rate has slowed down. According to the data of the China Automobile Association, in September 2022, the production and sales of my country’s automobile market were 2.672 million and 2.61 million respectively, an increase of 11.5% and 9.5% month-on-month, and a year-on-year increase of 28.1% and 25.7%; Reached 19.632 million and 19.47 million, an increase of 7.4% and 4.4% year-on-year, and the growth rate was slow.
Under the complicated environment, GAC Group has walked out of a production, sales and profit report curve far exceeding the market in the first three quarters.
According to the financial report of GAC Group, in September, GAC Group achieved vehicle production and sales of 228,100 and 237,200, up 41.5% and 44.3% year-on-year respectively. From January to September, a total of 1.8326 million vehicles were produced and 1.825 million vehicles were sold, a year-on-year increase of 26.9% and 22.2% respectively. It can be seen that the growth rate of GAC Group’s single-month and cumulative production and sales far exceeds the industry’s, and the leading advantage is obvious.
Specifically, GAC’s own brands show a continuous upward trend. In the independent sector, GAC Aion focuses on the field of EV+ICV (electricity + intelligence). In September this year, GAC Aion sales exceeded 30,000 units, a year-on-year increase of 121.2%. From January to September, GAC Aion accumulated 182,384 units were produced and 182,321 units were sold, a year-on-year increase of 133.8% and 132.1% respectively.
GAC Trumpchi continues to promote “XEV+ICV” (electrification + intelligence), forming a differentiated development with Aion. In September this year, GAC Trumpchi achieved production and sales of 37,223 vehicles and 33,494 vehicles, a year-on-year increase of 65.1% and 46.1%; from January to September, the cumulative production and sales of 274,605 vehicles were 267,374, an increase of 32.0% and 20.9% year-on-year respectively.
While the sales of self-owned brands have soared, the sales of joint venture brands have also increased steadily. The report shows that GAC Toyota produced and sold 91,649 vehicles and 96,000 vehicles in September, an increase of 89.5% and 98.8% year-on-year; from January to September, the cumulative production of vehicles was 758,399 vehicles, a year-on-year increase of 32.1%. It is worth mentioning that Wen Dali, executive deputy general manager of GAC Toyota, said at the 2021 Guangzhou Auto Show that GAC Toyota will hit millions of sales in 2022. Judging from the current cumulative sales volume, it is entirely possible for GAC Toyota to achieve this achievement.
In addition, from January to September, GAC Honda produced a total of 577,866 vehicles and sold a total of 572,963 vehicles, an increase of 8.8% and 4.4% year-on-year respectively. GAC Group told the “China Times” reporter: “The order situation of GAC Honda is good, but due to the impact of the shortage of chips, judging from the current situation, it will probably affect the sales of GAC Honda of about 100,000 units.” Regarding the expectations of the joint venture brand in the fourth quarter, GAC Group said that after entering the fourth quarter, the supply-side problem will gradually improve, and the delivery problem of best-selling models will also be alleviated. Moreover, with the continuous promotion of policies, the peak consumption season in the fourth quarter will come as promised, and GAC’s joint venture brand will be expected to continue to grow.
In general, GAC Group’s independent segment continues to grow, and its joint venture segment is also growing steadily. With the increase in sales, GAC Group’s gross profit margin has also improved. The report shows that in the third quarter, GAC Group’s gross profit achieved a large increase, with a month-on-month increase of 26.8% and a year-on-year increase of 10.8%.
Increase the overall industrial chain layout
In addition to the increase in the overall scale of production and sales, GAC Group has also continued to develop in new energy.
In terms of joint venture brands, in the first three quarters, GAC Group’s joint venture brands released pure electric products including GAC Honda e:NP1 Extreme 1 and GAC Toyota bZ4X, which greatly enhanced their influence in the industry.
In terms of self-owned brands, in the first three quarters, GAC Trumpchi launched the Shadow Leopard, GS8 and the newly launched new SUV Yingku, all of which launched hybrid versions, increasing the proportion of electrified products. It is understood that GAC Trumpchi will realize hybridization of all products in 2025, and hybrid sales will account for more than 60% in 2030, challenging to achieve carbon neutrality in 2045. It is worth noting that in the future, Trumpchi will also consider launching hydrogen power products according to market conditions.
GAC Aian started its brand high-end strategy. On September 15 this year, GAC Aeon released the new Logo “AI Shenjian”, and launched a new high-end series – Haobo Hyper and the first high-end electric sports car Hyper SSR, promoting the Aion brand upward. At the same time, on October 20, GAC Aeon announced the completion of the A round of financing, with a total financing of 18.294 billion yuan, setting a new record for the largest single private financing in the domestic new energy vehicle industry. After the capital increase is completed, the valuation is 103.239 billion yuan, which is the highest valuation of unlisted new energy vehicle companies in China.
Feng Xingya, general manager of GAC Group, said that as the pure electric new energy vehicle platform of GAC Group, Aion will usher in a new stage of development in terms of business integration and expansion, efficiency improvement and development speed after its listing. For GAC Group, through the in-depth integration and focus of pure electric new energy vehicle business, it is also conducive to promoting the business of related sectors to become better and stronger.
In addition to receiving huge financing, GAC Aeon is also continuously strengthening the layout of the entire industry chain. During the reporting period, GAC Energy Technology Co., Ltd., jointly invested by GAC Group and GAC Aian, was officially registered and established. The company conducts business around the construction and operation of charging and swapping networks, technology research and development, and battery operation management. It is expected to invest 4.96 billion yuan in the future. The mixed-ownership high-tech enterprise incubated within the GAC Group, Juwan Technology Research Institute, is actively expanding its production capacity. It is expected to add 8GWh of XFC extreme-speed battery production capacity in 2023, with the ability to support 120,000 new energy vehicles.
In addition, Ruipai Power Technology Co., Ltd., jointly invested by GAC Group, GAC Aeon, and GAC Passenger Vehicle, was also officially registered and established recently. The company focuses on independent research and development and industrialization of the IDU electric drive system to achieve independent electric drive. Integration of R&D, trial production, testing and mass production.
At the same time, on October 27, GAC Aian announced that it was jointly invested by GAC Aian, GAC Passenger Vehicle, and GAC Commerce, and GAC Aian Holding’s Inpai Battery Technology Co., Ltd. was officially registered and established, with a total investment of 10.9 billion yuan to develop battery self-development. Research and develop the industrialization construction of self-production and the production, manufacture and sales of independent batteries. In this regard, GAC Aian said that batteries are the power source of new energy vehicles and a key factor related to production and manufacturing costs. Being able to realize the independent control of core technologies such as power batteries and related industrial chains in the environment of industry competition, repeated epidemics, tight supply chains, and rising resource costs is a major manifestation of the core competitiveness of car companies, and is sustainable for car companies. development plays a vital role.
Auto analyst Xu Jiaping told the “China Times” reporter that GAC Group’s current achievements include not only its own efforts, but also the trust of consumers and the continuous improvement of China’s auto market. As GAC Group continues to strengthen its upstream and downstream industrial chains, it will avoid the impact of uncertainties such as the epidemic and raw materials in the future, which will also bring GAC Group’s revenue and gross profit margin to a higher level.
Responsible editor: Li Yanan Editor-in-chief: Yu Jianping