Editor's Introduction: In 2021, Jiangling Motors' revenue and net profit reached positive growth, while due to the impact of idle production capacity, the deduction of non-net profit fell seriously. Initial results have been achieved in passenger cars, and SUV sales have increased significantly.
Revenue up 6.42%
On March 30, Jiangling Motors released its 2021 annual report. According to the annual report data, in 2021, Jiangling Motors' operating income was 35.221 billion yuan, up 6.42% year-on-year; the net profit attributable to the shareholders of listed companies was 574 million yuan, an increase of 4.26% year-on-year, but the net profit after deducting non-recurring gains and losses was 29.63 million yuan, down 92.69% year-on-year.
Auto analyst Ren Wanfu believes that the reason for the huge difference between the increase in Jiangling Motors' net profit and non-net profit may be due to the low capacity utilization rate.
In 2020, Jiangling Motors sold 331,000 units, an increase of 14.15% year-on-year, accurately achieving the target of 330,000 units that year. Based on this growth rate, Jiangling has set a target of 400,000 vehicles in 2021. At the same time, in order to increase production capacity, the Toyama plant built by Jiangling Motors was fully operational in September last year. It is reported that the annual production capacity of the Toyama plant is 300,000 complete vehicles.
However, from August last year to the end of 2021, Jiangling Motors' monthly sales have maintained a year-on-year decline trend. In the end, Jiangling Motors failed to achieve the target in 2021, with total sales of 341,000 units, an increase of only 2.99% year-on-year. The weak increase in sales volume could not keep up with the change in production capacity, which inevitably led to idle capacity.
Commercial vehicle sales declined
Jiangling Motors' main business is the production and sales of commercial vehicles, SUVs and related parts, of which commercial vehicles account for the vast majority of Jiangling Motors' vehicle sales. In 2021, Jiangling Motors' commercial vehicle sales will be 84.3% of total sales.
The main reason for Jiangling Motors' unsatisfactory sales in 2021 is that commercial vehicles have not been able to achieve growth. In 2021, Jiangling Motors sold 288,000 commercial vehicles, only 454 more than last year. Its most important sales model of commercial vehicles, the bus, sold 118,000 units in 2021, down 8.36% year-on-year. Although the sales of light buses and pickup trucks increased by 9.16% and 4.14% respectively, the growth rate of the previous year has decreased to varying degrees.
In this regard, Ren Wanfu believes that this is affected by the overall decline in production and sales in the commercial vehicle market last year. The sales of commercial vehicles are closely related to the economic situation, while the domestic epidemic has affected most regions, which has made it difficult to sell commercial vehicles.
According to data from the China Automobile Association, the production and sales of domestic commercial vehicles in 2021 were 4.674 million units and 4.793 million units, down 10.7% and 6.6% year-on-year, respectively.
The proportion of SUVs has increased
In contrast to the slightly sluggish performance of commercial vehicles, Jiangling Motors' proportion of passenger cars has increased in 2021. Last year, Jiangling Motors sold a total of 53,000 SUVs, an increase of 21.48% year-on-year, accounting for 15.7% of total sales, an increase of 2.4% compared with last year.
Among them, the main SUV products sold by Jiangling Motors are not their own brands, but joint venture brands with Ford, namely Four products such as Jiangling Ford Lingrui, Lingyu, Lingjie, and Roadbreaker. In addition, The Collar provided the main sales volume, selling 44,000 units in the whole year.
From the perspective of sales, jiangling's previous strategy of "walking on two legs" for passenger cars and commercial vehicles has achieved initial results. In January this year, Jiangling Ford Technology, a joint venture jointly funded by Jiangling and Ford, was officially announced, and on March 28, the first passenger car was officially listed - Jiangling Ford Lingrui.
The passenger car market is indeed several times larger than commercial vehicles, and it is not difficult to understand that Jiangling Ford wants to expand its "position", but the passenger car market is also very competitive. In the future, Jiangling Ford Technology passenger cars will not be easy to compete for a place in the market.