Since 2020, SAIC Motor, the "boss" of the automotive industry, has once faced a dilemma: the group's stock price has continued to be under pressure, and the company's market value has declined all the way since 2017, and has been surpassed by opponents such as BYD and Great Wall Motors, and even lower than new power car companies such as Weilai and Xiaopeng. Some people even think that saic's golden age has passed...
However, saic motor group recently announced the sales performance of 2021: SAIC motor group annual wholesale sales of 5.464 million vehicles, has maintained the first domestic sales for 16 consecutive years, the leading edge expanded to nearly 2 million vehicles, it can be said that behind the "dilemma", SAIC is still sitting in the position of the leading boss of the automotive industry.
As the largest automobile group in China, SAIC not only has a huge vehicle business system, but also covers the research and development, production, sales and other businesses of the whole life cycle of automobiles, and the number of industrial chain companies attached to the upstream, middle and lower reaches of SAIC Group business is even larger. Although SAIC Motor is often above the outlet due to its market capitalization, in terms of supply chain and supply chain finance, the leading boss in the automotive industry...
First, the "strong" car boss, upstream and downstream "all-you-can-eat"
Founded in 1984, SAIC Motor is one of the earliest automobile groups in China. Under the integration and development of many years, SAIC Motor has successfully transformed from a simple automobile manufacturing enterprise to an integrated supplier of mobility services and products.
ACCORDING TOC Motor's official website, not only its vehicle business is huge, but also the variety of automobile-related products is quite complete, at present, SAIC Motor's business covers the research and development, manufacturing and sales of the whole life cycle of automobiles. It includes R&D, production and sales of vehicle businesses such as passenger cars and commercial vehicles; R&D, production and sales of parts; mobility services such as logistics, automotive e-commerce, travel services, energy-saving and charging services, as well as automotive-related finance, insurance and investment businesses.
As the largest automobile group in China, SAIC Motor's production and sales have ranked first in the industry for many years, and the huge brand ecosystem layout has extended to many production and marketing suppliers in its upstream and downstream.
Palm Chain found that as the parent company, SAIC motor has a large competitive advantage in the entire automotive industry chain, a strong right to speak, and has the ability to "eat at both ends" upstream and downstream.
According to SAIC's financial report data in the past three years, in 2018, SAIC's bills receivable and accounts receivable were 61 billion, which decreased to 47.6 billion in 2019, and continued to decrease to 47.1 billion in 2020. With the decrease in notes receivable and accounts receivable year by year, the Group's notes payable and accounts payable have increased year after year, with SAIC's notes payable and accounts payable of SAIC Group reaching 154.8 billion in 2018, increasing to 170 billion in 2019, and continuing to grow to 205 billion in 2020.
If you look at the difference between "accounts payable + accounts receivable in advance" and "accounts receivable + prepaid accounts", this figure has increased from 90.4 billion in 2018 to 143.6 billion in 2020. In other words, SAIC Can occupy more supplier funds for self-business development, and the ability of upstream and downstream "all-you-can-eat" also shows that its supply chain system is relatively perfect.
Second, the 100 billion level of receivables and payables, SAIC's supply chain finance?
1. The giant ship "turns" around, and saicid's supply chain relationship is intricate
SAIC Motor is a "giant ship" that mixes its own brand and joint venture brand in the automobile, and its vehicle business alone includes SAIC Passenger Vehicle Branch, SAIC Maxus, Zhiji Automobile, Feifan Automobile, SAIC Volkswagen, SAIC-GM, SAIC-GM-Wuling, Nanjing Iveco, SAIC Hongyan, Shanghai Shenwo, etc.
In the past decade or so, SAIC's net profit sources have mostly relied on the two joint venture brands of SAIC Volkswagen and SAIC-GM, which account for more than 70% of the total profit. With the iteration of automobile consumption in recent years and the transformation of the automotive industry environment, SAIC Motor has conformed to the trend of the times, and its own brand cars have gradually begun to exert strength and ushered in an inflection point.
In the past 2021, SAIC Motor sold 5.464 million vehicles in the whole year, and SAIC's own brands sold 2.857 million vehicles, accounting for 52.3% of total sales, which is the first time that the sales share of independent brands has exceeded 50% in the past time. At the same time, SAIC Motor's new energy vehicles also bucked the trend, selling a total of 733,000 units in 2021, an increase of 128.9% year-on-year, ranking first in China and second in the world. The dependence on joint venture brands has gradually decreased, and independent brands and new energy business have become an important force driving the company's sales growth.
From the perspective of the entire layout of SAIC, while consolidating the joint venture brand, the passenger car field vigorously develops its own brand, and in the field of commercial vehicles, it is based on a full range of operations, and quickly seizes the market through mergers and acquisitions, independent development and joint ventures, and the parts field forms a supply system such as powertrain system, chassis system, and electronic system integration capability around independent brands.
Among the many independent brands and joint venture brands of SAIC Group, each brand corresponds to one or more upstream and downstream supply and marketing chains, and some even multiple superimposed, forming its huge ecosystem system. And with the changes in the market, the proportion of independent brands and joint venture brands is also changing, affecting the changes in their production and marketing chains, thus forming an intricate supply relationship.
2. The combination of industry and finance, the expansion of SAIC's supply chain financial territory
Palm Chain found that the integration of SAIC's automobile industry and finance began its layout as early as 1994, and in this year, SAIC motor group established a non-bank financial institution, Saic Motor Group Finance Co., Ltd. Since then, SAIC Finance has divided the company's business into three major sectors: auto finance, corporate finance, and investment and financing.
At present, its auto finance business includes SAIC Volkswagen, Skoda, Roewe, MG, R brand, SAIC Maxus, SHANGYIhong, Yuejin 8 vehicle brands, by the end of 2020, SAIC Finance auto finance business has covered nearly 3,200 dealers, accumulatively providing financing services for nearly 18 million vehicles. In terms of corporate finance, SAIC Finance provides more than 500 group enterprises with a full range of local and foreign currency financial services such as deposits, loans, settlements, foreign exchange, and financial advisory with customized products and personalized services. The data shows that in 2020, the company achieved a consolidated net profit attributable to the parent company of 5.138 billion yuan, and the annual consolidated operating income was 19.301 billion yuan.
In 2004, SAIC Finance, Together with General Motors Finance and SAIC-GM, saic motor-GM Finance Co., Ltd., established the first auto finance company in China. The company mainly provides car-related financial services for individual customers or corporate customers who purchase SAIC-GM, SAIC-GM-Wuling, and other vehicle companies that produce and sell passenger cars.
According to the data, SAIC-GM Financial has provided more than 1,000 authorized dealers of SAIC-GM and SAIC-GM-Wuling in more than 300 cities with loans for the purchase of vehicles and operating equipment loans, including exhibition hall construction loans and spare parts loans. From its inception to the third quarter of 2021, SAIC-GM Financial has issued more than RMB2.2 trillion in loans to dealers through wholesale inventory financing.
In order to more clearly define the strategy of combining industry and finance, in 2015, SAIC Motor officially established the Financial Division, and established the strategic positioning of "basing itself on the automobile industry, realizing the combination of industry and finance, and providing professional, market-oriented and comprehensive financial services for users in the whole industry chain".
Under the integration of the financial division, SAIC's financial sector is divided into four sectors: auto finance, corporate finance, equity finance and insurance sales, of which auto finance is to provide financing services for dealers and auto consumer terminal customers; corporate finance functions are to provide capital deposits and loans, settlement, bills, foreign exchange and various agency services for SAIC group member enterprises.
In addition, in addition to the sale and leaseback business and direct leasing business in SAIC's financial sector, Anji Leasing also involves the planning of supply chain finance businesses such as inventory financing, order financing, and showroom financing, as well as vehicle wholesale financing and equipment financing.
From the perspective of its layout, SAIC's supply chain finance has always taken the vehicle enterprise as the core, taken the entire industrial chain as the object, provided financing services for various aspects such as manufacturing and sales, carried out factoring business for suppliers, carried out store building financing business for dealers, and carried out automobile consumer loan business downstream, seeking more advantageous values than external commercial banks.
3. Under the change, science and technology have increased
In 2019, at the SAIC Finance Forum, Wei Yong, vice president of the group, said that SAIC Finance should make money, but also provide good services, closely focus on the development of the main business, and find ways to find new market opportunities in this fiercely competitive and cruel market game.
In recent years, SAIC Motor has made frequent moves in supply chain finance.
In May last year, SAIC Financial Holdings Management Co., Ltd., under the financial sector, and SAIC Anji Logistics jointly registered and established SAIC Anji Commercial Factoring Company. It is understood that after the establishment of the factoring company, it will rely on SAIC's automotive industry resources to provide financing services for the group's supply chain enterprises, and will become the group's future supply chain financial comprehensive service platform.
Then, in December last year, SAIC's wholly-owned subsidiary Seck Supply Chain, reached a partnership with AntChain, an external brand of Ant's intelligent technology business, which provides trusted and efficient technical solutions for the industry by integrating technologies such as cross-blockchain, AIoT, data analysis and intelligent risk control.
After the cooperation between SAIC Supply Chain and Ant Chain, the supply chain of SAIC Group has inserted the wings of science and technology for the supply chain finance of the Group, and the SEC Supply Chain has built a supply chain financial service platform driven by blockchain technology based on the core SAIC Group credit and based on accounts receivable claims. It is understood that the SECD supply chain was officially launched in early 2021, and has provided nearly 150 suppliers related to 6 OEMs and businesses such as SAIC Hongyan, SAIC Passenger Vehicle and SAIC Maxus, providing financing facilities for small and medium-sized enterprises of 75.9 million yuan.
In recent years, the automotive industry is undergoing unprecedented changes, and in the future, enterprises will face more and more uncertainties. Take the above steam as an example. In SAIC's financial report for the first half of 2021, the group's net cash flow from operating activities fell from 29.36 billion yuan in the same period last year to 1.58 billion yuan, a decline of 94.6%. SAIC Motor explained that the reason for the large change in the amount was caused by the issuance of ABS by subsidiary SAIC Finance to replace interbank loan funds. Even so, in the face of the overall downturn of the automotive industry in the future, the general environment is unpredictable, and SAIC Motor, which has a huge supply chain system, supply chain finance still has a long way to go.
(Author: Yu Yi)
Editor: Xiaolan