Wang Chuanfu did not expect that he would rush to the hot search list because of the "slashing" corruption with a sword! In the past 2021, BYD once won a market value of more than 900 billion, just one step away from trillions, and it is not expected that after a short period of highlights, in exchange for the stock price continues to decline, the market value continues to shrink, which is a big ups and downs!
Nowadays, BYD, which has a market value of less than 700 billion yuan, has once again aroused heated discussion, but it is not because of performance, compared with the elimination of "internal thieves", BYD's current situation is more worrying to people inside and outside the industry, from the new energy jianghu of the rich and powerful, under the sniper of opponents such as the Great Wall and Geely, how long can BYD's C position be maintained?
01, Wang Chuanfu's "Ten Million Reward"!
"28 suppliers were held accountable, 94 employees were investigated and punished, and the maximum reward for effectively reporting corruption was 10 million...", at the beginning of the new year in 2022, BYD struck hard and set off a round of anti-corruption storm:
On January 24, BYD's official account incorruptible BYD released a letter to BYD partners, which listed all the anti-corruption achievements made by BYD in the past 2021, including but not limited to accountability suppliers, as well as the investigation and punishment of employees, etc., but the most surprising thing for netizens was that BYD actually offered a sky-high bonus of up to 10 million yuan, solicited clues, and eliminated corruption invisibility.
Photo: Incorruptible BYD
As soon as the news came out, netizens who ate melon began to speculate, investigated and punished 94 employees, BYD's corruption can be imagined how serious it should be, the maximum reward is 10 million, even if the court's public reward is calculated according to the amount of the target, the highest one or up to 10%, does that mean that BYD or still hides a huge corruption incident involving hundreds of millions of yuan?
Conjecture finally stays imaginary, everything has to tell the facts, put the evidence, we check the past public reports, in 2021 alone, BYD has exposed too many corruption-related incidents:
On March 4, 2021, "Incorruptible BYD" reported 10 typical anti-corruption cases, involving the fourth quarter of 2020, of which senior process engineers accepted rebates from suppliers, the head of the comprehensive section of the business department illegally accepted holiday fees, and even the canteen of the logistics department illegally accepted money from suppliers.
On April 16, 2021, BYD officials again reported that in the first quarter of 2021, a total of 9 internal ghosts were picked up and 7 typical cases were investigated and punished, among which in addition to employees accepting rebates from suppliers, there were also more exaggerated violations of the law of opening a D yard to earn money.
According to the statistics of 21st Century Economic News, since BYD first announced the corruption case in 2018, by the end of 2021, BYD has reported and investigated more than 100 employee corruption incidents, involving a total of 245 employees.
However, just when BYD's high-profile anti-corruption campaign, it has also caused some controversy, the most representative of which is the "advertising door" incident and the sudden death of a 36-year-old BYD employee
On May 14, 2021, a court ruling announced that the BYD "advertising gate" incident, which had been silent for two years, returned to the public eye again.
According to media reports, BYD found more than 30 advertising companies to do brand promotion in 3 years, and these advertising companies advanced publicity costs of up to 1.1 billion, but as a result, BYD was exempted from liability (throwing pots) on the grounds of cooperating with "fake BYD", which triggered the collective rights of advertisers, and many advertising companies were directly dragged bankrupt.
The implicated advertisers and suppliers are still struggling to defend their rights and pursue the responsibility of BYD, and the account between them and BYD has not yet been cleared, and the 1.1 billion unsolved case seems to have settled, but for these advertisers who have suffered heavy losses, BYD will give them a fair and just solution?
On November 17, 2021, the surging news exclusively reported that 36-year-old BYD employee Wang Moulong suddenly died in the rental house, Wang Moulong's pre-death punch card records show that in October, he had 26 days of working hours of about 12 hours, far exceeding the 8-hour working hours stipulated in the labor law, but what triggered tsunami-like public opinion was not only suspected of excessive squeezing of employees, but also because of "30,000 pieces of humanitarian compensation".
As the automobile company with the highest value in the A stock market and the most promising seed player in the world's top 500 in 2022, how can an employee die of overwork and sudden death, how can he think of giving 20,000 to 30,000 yuan to send it off? Fortunately, after the media reported, public opinion pointed to BYD, and BYD changed its tone and agreed to pay a one-time payment of 200,000 yuan to Wang Moulong's family.
These two incidents are in stark contrast to BYD's crackdown on corruption, and it is difficult not to give people the feeling that BYD is as crisp as a knife in the face of behavior that threatens its own interests, and when its employees or "partners" suffer unexpected or significant losses, they are somewhat indifferent and unreasonable.
Wang Chuanfu has always had the goal of building a trillion-dollar company, and now, BYD's market value is shrinking, behind the iron fist anti-corruption, is there a lingering business worry?
02, BYD's "trillion dream" is fading away?
At the beginning of 2022, it is a sign of many car companies to review the results of 2021, Geely and the Great Wall have achieved sales of more than 1 million vehicles, BYD has only crossed the threshold of 740,000 vehicles, absolute sales, BYD seems to have a big gap with Geely and the Great Wall.
Pictured: City boundaries
At present, BYD is facing many kinds of anxiety:
Net profit plummeted nearly 30%
In 2021, BYD's new energy vehicle sales of 593,700 units, an increase of 231.6% year-on-year, ranking first in China's new energy passenger cars, however, due to the rise in raw material prices and many other factors, BYD's net profit has dropped sharply, in the first three quarters of 2021, BYD achieved revenue of 145.192 billion yuan, an increase of 38.25% year-on-year, and the net profit attributable to shareholders of listed companies was 2.443 billion yuan, down 28.43% year-on-year.
At the same time as the net profit fell, BYD's gross profit margin and net profit margin also fell sharply, the Bank of China Securities Research Report shows that in Q3 2021, BYD gross profit margin recorded 13.3%, the same period last year was as high as 22.3%, net interest rate recorded 2.7%, as high as 5.7% in the previous period, in the first three quarters of 2021, gross profit margin was only 13%, net profit margin was only 2.3%.
What are the core reasons for the increase in revenue and the lack of profit?
We believe that although the new energy passenger car BYD has won a ride of sales, but the sales of traditional fuel vehicles, BYD has ushered in a sharp decline, 2021 Q3 data show that BYD only sold 23,000 fuel vehicles, a drop of 61.6%.
BYD's mobile phone foundry business is far from meeting expectations, or the second reason for dragging down performance.
WIND data shows that BYD Electronics' mobile phone components and assembly business in 2020 contributed 38.34% of the revenue, becoming the second pillar after the automobile business, however, BYD Electronics' revenue also showed a downward trend.
Data from dolphin research report shows that in Q3 2021, BYD Electronics achieved revenue of 21.1 billion yuan, an increase of only 5%, compared with 33% in the same period last year, and the net profit attributable to the mother was 510 million yuan, a year-on-year plunge of 72%.
From this, it is not difficult to see that the double killing of automobiles (fuel vehicles plummeting) and electronics business is the culprit of BYD's profit decline.
The space for technological imagination is limited
Tesla's market value is proud, the killer lies in the technical advantages in the field of automatic driving, and BYD, which started with a copycat fuel vehicle, has not been able to come up with results in the field of automatic driving, not to mention Tesla, even new forces such as "Wei Xiaoli" have dumped BYD far.
Our data speaks, as of the close of January 25, 2022, BYD's stock price was 240.31 yuan / share, the total market value was only 699.577 billion yuan, compared with the highest point of 900 billion on October 25, 2021, it was enough to evaporate 200 billion, Wang Chuanfu's market value trillion dream, once again shattered...
Source: Oriental Wealth
However, BYD's technical accumulation in the field of power batteries is a breakthrough enough to form differentiated competitiveness, if the follow-up solves the problem of production capacity, "blade battery" does not rule out the possibility of pulling up the stock price, but at present, its safety is still questioned.
The BYD Qin Pro EV caught fire
Under the double pressure of net profit and market value, Wang Chuanfu, who was sleepless, really came up with a new countermeasure:
On January 21, 2022, BYD announced a price increase ranging from 1,000 to 7,000 yuan, covering a variety of new energy models such as Han, Tang, Song, and Yuan, and the price increase will take effect on February 1, and will not be affected by customers who have previously paid a deposit to sign a contract.
Considering that the subsidy standard for new energy vehicles clearly required in the "2022 New Energy Vehicle Promotion Subsidy Plan" will "decline by 30% on the basis of 2021", whether many manufacturers, including BYD, will have an adverse impact on sales after the official price adjustment, it remains to be tested by time and the market.
In addition to the internal anti-corruption, waiting for BYD, there are still many tests, will Wang Chuanfu hand over a satisfactory answer sheet and defend the C position?
See!
Resources:
1, BYD's "advertising door" drama ending: the main culprit was sentenced to 14 years, but the advertising company was dragged down - AI Finance and Economics
2, BYD officially announced the typical anti-corruption case in the fourth quarter of 2020 - the automotive industry is concerned
3, BYD has employees arrested! Security guards open casinos privately, employees play mahjong and accept bribes - Sina Finance
4, BYD struck a hard fight against corruption: 94 employees were investigated and punished in 2021, and 28 suppliers were held accountable - 21st Century Business Herald
5, sudden: BYD Qin Pro EV fire Official response - Autohome
6, figure source network