The author | Yu Weng
Edit | Island
Period: 2744
Source: People and Island members
In the past year, the epidemic is still accompanied by our lives, and the shortage of chips has led to a general reduction in production of car companies, but the head car dealer group seems to have not been affected. Recently, Zhongsheng and Yongda two Hong Kong-listed auto dealer groups released their main operating results in 2021, and both auto dealer groups achieved profit growth of more than 50%!
New car sales slowed, and used cars stepped forward
According to the disclosed information, the new car sales of the two automobile dealer groups only achieved a year-on-year increase of about 5% last year, of which the new car sales of Zhongsheng Holdings increased by 5.5% year-on-year, and the new car sales of Yongda Automobile increased by 4.55% year-on-year.
The sales structure of the two auto dealer groups is not the same, Zhongsheng Holdings luxury car sales growth is significantly faster, while Yongda Automobile's high-end sales growth rate is relatively high; however, from the perspective of the proportion of luxury car sales, Yongda Automobile luxury car sales accounted for 66%, still ahead of Zhongsheng Holdings 57%, the head car dealer group showed a trend of weakening high-end brands.
Compared with Zhongsheng Holdings, Yongda Automobile seems to be more convinced of the future of the new energy vehicle era. In 2021, Yongda Automobile's new energy vehicle sales reached 15,920 units, an increase of 55% year-on-year, significantly ahead of the overall growth rate of new car sales; at the same time, its share of new car sales increased from 5.02% in 2020 to 7.44% in 2021. On the one hand, Yongda Automobile expands its independent new energy brand and obtains the authorization of AITO, Xiaopeng, Zero Run and other stores;
On the other hand, through the agent sales model, the cooperation with traditional cars has been deepened, and BMW I-Space and Volkswagen ID Store have landed, achieving sales of independent new energy brands and 1863 direct sales of new energy factories, respectively. Zhongsheng Holdings seems to be "half a beat slower", mainly signing a strategic cooperation agreement with Xiaopeng Automobile and landing a Xiaopeng new car delivery center and commercial supermarket in Shenzhen.
Due to the shortage of chips and the shortage of new cars, the used car business of the auto dealer group has achieved rapid development and strategic recognition in more than 2021. In 2021, Yongda Automobile's used car business was menacing, achieving a used car transaction volume of 71,605 units throughout the year, an increase of 39.96% year-on-year, leading Zhongsheng Holdings (an increase of 30.2% year-on-year) by nearly 10 percentage points; the ratio of used car new car structure increased to 33.47% (an increase of 8 percentage points year-on-year), and also jumped ahead of Zhongsheng Holdings' 26.39% (an increase of 5 percentage points year-on-year). Although the scale of Yongda Automobile's second-hand car cannot exceed or even approach Zhongsheng Holdings in the short term, in the popularity of second-hand cars, Yongda Automobile can be described as the first to win.
Seize the supply and demand adjustment window period, and the gross profit of new car sales has increased
In 2021, most of the profitability of new cars of the automobile dealer group has been improved, such as the gross profit margin of new car sales of Zhongsheng Holdings reached 4.44%, an increase of 1.39 percentage points year-on-year; the gross profit margin of new car sales of Yongda Automobile reached 3.49%, an increase of 0.82 percentage points year-on-year. I have to admit that the new car sales management of Zhongsheng Holdings is really strong.
Yongda Automobile disclosed that in 2021, the sales revenue of luxury new cars will be 5388590 million yuan, the sales revenue of high-end new cars will be 9723.985 million yuan, and the gross profit margin of luxury car new car sales will be 4.09%; then, it is not difficult for us to launch the sales profit of Yongda's high-end brands: gross profit of 16.9358 million yuan and gross profit margin of 0.17%! The value of high-end brands, will there really be only traffic import in the future?
Not only that, even in the luxury car system camp, the brand performance is very different. At Yongda Motors, the BMW brand's gross profit margin on sales was 3.05%, which is not yet as good as the average gross margin on sales of luxury cars and new cars, while the gross profit margin of porsche brands was a staggering 8.73%, more than twice the average gross profit margin of luxury car sales.
Of course, one of the fundamental reasons for the increase in the gross profit margin of new cars lies in supply and demand, and in turnover. Yongda Automobile disclosed that the turnover rate of new car sales in 2021 was 22.5 days, a decrease of nearly 8 days compared with 30.4 days in 2020.
Whether it is Zhongsheng Holdings or Yongda Automobile, in 2021, the gross profit margin of used cars exceeds the gross profit margin of new cars. Zhongsheng Holdings' used car gross margin was 6.13%, which exceeded 4.44% of new car sales gross margin despite a decline. The gross profit margin of 15.65% achieved by Yongda Automobile's used cars can actually be seen more clearly and transparently through segmentation.
Yongda Automobile's used cars include two models, distribution and brokerage, of which the distribution model, although the transaction volume accounts for only 15.47%, contributes 54.74% of the gross profit. Yongda Automobile's used car gross profit margin reached 9.22%, which is also ahead of the overall level of Zhongsheng Holdings; at the same time, its second-hand car bicycle revenue of 202,400 yuan is also enough to describe the new car level of many car dealer groups.
In 2021, the after-sales service of Zhongsheng Holdings and Yongda Automobile has achieved good growth, and the after-sales gross profit margin has maintained a high level, of which: the after-sales gross profit margin of Zhongsheng Holdings is 3 percentage points ahead of Yongda Automobile.
Of course, for the car dealer group, it is relatively easy to rely on the accident car for the growth of after-sales service. Yongda Automobile disclosed that last year, the revenue of mechanical and electrical maintenance business increased by 17% year-on-year (lower than the overall growth rate of after-sales service revenue), and the revenue of accident car business increased by 27.1% year-on-year (higher than the overall growth rate of after-sales service revenue).
Profit structure of automobile dealers under the new change
At present, the domestic automobile dealer industry is showing unprecedented changes and adjustments: under the background of new energy vehicles gradually singing the protagonist, the emergence of the agency sales model; the popularity of automobiles is at a high level, the incremental market is excessive to the stock market, and the second-hand car business is ushering in development opportunities... Affected by this, the operating structure and profit structure of automobile dealers (groups) will also be changed.
We only use the disclosure information of Yongda Automobile to explain that in the short term, new car sales and after-sales service will still be the main source of business scale; after-sales service is still the mainstay of dealer profits, and high-end new car sales, more will become traffic tools, bringing financial and insurance revenue, bringing second-hand car sources and second-hand car promotions and subsidies of car companies; as an emerging format, new energy direct sales agent income will accompany traditional car companies to promote new energy vehicles, and gradually improve, forming a stable level of profitability.
Through the 2021 operating performance of the two head car dealer groups of Zhongsheng Holdings and Yongda Automobile, it is not difficult to find that for the automobile dealer group: new car sales pay more attention to brand structure and turnover efficiency; second-hand cars pay more attention to scale effects, and improve profitability first from the scale increase; after-sales service is relatively stable, and the accident car is still a Dinghai God needle!