Geely sells the most, the Great Wall earns the most, and BYD has the highest gross profit margin
Text/Zeng Jia
With BYD's announcement of the 2021 financial report, the 2021 financial reports of the three major domestic independent brand car companies have been released.
Geely sold the most, winning the annual sales championship of Chinese brand passenger cars for the fifth consecutive year.
The Great Wall earns the most, with revenue and net profit ranking first, and the net profit is equivalent to twice that of BYD.
BYD has the highest gross profit margin, and the gross profit margin of the automobile business ranks first among the three car companies.
The above figure of BYD's operating income and automotive gross margin has been removed from the mobile phone business. However, net cash flow, R&D investment, and net profit are total business data.
Source: BYD's 21-year financial report
Domestic market: Geely brand upwards
Separating domestic sales from overseas sales, Geely's domestic sales have been declining, which is related to the product restructuring strategy of Geely's brand.
BYD's sales have jumped sharply, especially in the new energy sector. New energy passenger car sales in 2021 were 594,000 units, accounting for more than 82% of total sales, an increase of 231.6% year-on-year, accounting for 16.9% of China's new energy vehicle sales.
Geely and the Great Wall "going to sea" have achieved remarkable results
In terms of overseas sales, Geely maintained steady growth, BYD mainly attacked the domestic market, and the Great Wall grew significantly. The good performance of Geely and BYD in overseas markets is inseparable from the long-term overseas layout of the two car companies.
For Geely, Li Shufu is indeed far-sighted.
Thanks to his "buy, buy and buy" merger and acquisition strategy, the domestic auto market showed a weak 2018, Geely Automobile's overseas market sales increased by 136% year-on-year, increased by 109% in 19 years, fell back to 25% in 20 years, and increased to 58.2% in 21 years.
In 2017, Geely became Volvo's largest shareholder and also acquired a 51% stake in Proton's Lotus.
That's right, the Lotus that launched the first mid-sized SUV model in China.
Looking at Great Wall Motors, with the Tula plant in Russia, rayong plant in Thailand, and the Plant in Iracemapolis in Brazil, it has laid out production capacity across the three major states of Asia, Europe and the United States; its Haval automobile brand has landed in the Thai and Egyptian markets, and Models such as Wei brand Mocha and Euler Good Cat have entered the Munich International Motor Show and are about to enter the European market.
BYD "goes to sea", mainly by bus. Over the past decade, BYD's electric bus and taxi footprint has covered more than 300 cities on six continents and more than 300 cities, and all kinds of pure electric buses have delivered more than 68,000 vehicles worldwide.
Revenue: The Great Wall is the most stable, and Geely has new growth points
In terms of revenue composition, after excluding other businesses, the great wall of the three car companies has the most revenue from the automobile business, and BYD, which ranks at the bottom of the sales volume, ranks second in pure automobile revenue, closely following the great wall.
It is worth noting that Geely's revenue has seen a new growth point in intellectual property rights and technology licensing.
The news of Geely's entry into the power battery is not out of thin air. In March this year, Geely Technology Group signed an agreement with Ganzhou Economic and Technological Development Zone to jointly plan and build a power battery project with an annual production capacity of 42GWh in Ganzhou Development Zone.
It is equivalent to one-sixth of the total production capacity of 235GWh at the end of 2021 in catheter era.
Gross margin: BYD fell 8 percentage points
BYD, which has established a power battery industry chain, will have a battery revenue of 16.4 billion yuan in 2021, an increase of 36.27% year-on-year. But the gross margin of the automotive business after counting batteries fell to 17.39% from 25.2% last year.
In fact, after BYD began to integrate the automobile and battery business to calculate the gross profit margin, the data for 2021 hit a record low of 17.39%.
This is not unrelated to the soaring price of lithium iron phosphate raw materials this year, BYD in the case of carrying the upward pressure of upstream raw materials, the power battery market share increased from 16.2% in 2021 to the current 21.07%, throwing away 14.2 percentages of China Innovation Airlines.
Source: China Securities News
Net profit: BYD is at the bottom, and the Great Wall is rising steadily
From the perspective of profit trends, in 2020, Geely's net profit with the Great Wall was flat, and then Geely's net profit continued to decline, while the Great Wall maintained a growth trend of more than 6 billion. At the same time, BYD's net profit has always been inferior to the other two, after experiencing a significant increase in 2019 to 2020, falling back to about 3 billion.
In the context of China's auto market shifting from incremental to stock market, Geely and Great Wall, which are in the process of electrification transformation, increase revenue and develop the second market to provide support for a large number of transformation investments, which is indeed a good choice.
There is a certain electrification foundation, the formation of the battery industry chain BYD specializes in the direction of electric vehicles, new energy vehicle sales accounted for more than 80%, more in line with the general trend of the industry. All in all, the three major car companies have made choices that are most in line with the general trend and the current situation of enterprises.