On the afternoon of April 29, Changan Automobile successfully held the 2021 annual performance briefing meeting, at which Changan Automobile explained the company's 2021 annual and 2022 first quarter results, and made plans and prospects for the company's future development. Changan Automobile listened to the opinions and suggestions of investors extensively, and answered the questions of new energy development strategy, scientific and technological innovation and research and development, and brand renewal and upgrading that investors are generally concerned about.
Mr. Zhu Huarong, Chairman of the Board of Directors, Mr. Wang Jun, Director and President of the Company, Mr. Zhang Deyong, Director, Chief Accountant and Secretary of the Board of Directors and Mr. Yang Xinmin, Independent Director, attended the performance briefing.
Double growth in performance and sales The momentum of the autonomous sector is strong
On the evening of April 27, Changan Automobile announced its 2021 annual report, the company achieved operating income of 105.142 billion yuan, an increase of 24.33% year-on-year; net profit attributable to the mother of 3.552 billion yuan, an increase of 6.87%; net profit after deduction of non-profit of 1.653 billion yuan, an increase of 150.85%, earnings per share of 0.47 yuan, total assets of 135.4 billion yuan.
On the evening of April 28, Changan Automobile announced the first quarter of 2022 performance report, the company achieved operating income of 34.576 billion yuan, an increase of 7.96% year-on-year, an increase of 33.28% month-on-month; net profit attributable to the mother of 4.536 billion yuan, an increase of 431.45%; net profit after deduction of non-attributable to the mother is expected to be 2.270 billion yuan, an increase of 215.24% year-on-year, earnings per share of 0.59 yuan.
The accelerated growth of operating income and the continuous improvement of profitability are inseparable from Changan Automobile's continuous satisfaction of user needs over the years, continuous enrichment of product genealogy, and continuous product renewal, etc., which also makes Changan Automobile enter the fast lane of development with both scale and efficiency, showing a gratifying scene of production and sales.
In 2021, Changan Automobile sold 2.301 million units in batches, an increase of 14.8% year-on-year, achieving stable growth for three consecutive years; the market share reached 8.8%, an increase of 0.8 percentage points year-on-year, ranking fourth in the industry, an increase of 1 place year-on-year. In particular, the growth momentum of the autonomous sector is strong, among which the Changan passenger brand hit a record high, with sales of 966,000 vehicles, an increase of 20% year-on-year; auchan brand scale returned to 200,000 units, an increase of 49% year-on-year; new energy vehicle sales exceeded 100,000 units for the first time, an increase of more than 200%; overseas market batch sales of 104,000 units, an increase of 114%.
It is not easy for Changan Automobile to achieve such results. This spring, under the repeated impact of "lack of core and less electricity" and the epidemic, resource supply has become the core work of the entire automotive industry, Changan has fought the epidemic, grabbed materials, and went all out to ensure market demand. All employees of Changan work together to overcome difficulties and strive to realize their commitment to users, fully demonstrating the strength and responsibility of Changan in the past century.
Continue to build core competitiveness The development trend is constantly improving
Changan's operating efficiency and sales growth in 2021 and the first quarter of 2022 have both scale, efficiency and sustainable development. The reason behind the analysis is actually due to the fact that Changan Automobile has achieved breakthroughs and transcendence in the three dimensions of growth, profitability and innovation.
First of all, the growth of Changan Automobile continues to improve, and the momentum of expansion continues to increase. Changan Automobile continues to create classic products, CS75PLUS, Yidong PLUS, the second generation of CS55PLUS have quickly become explosive products in their respective market segments after listing; UNI sequence sales have exceeded 230,000 vehicles, UNI-K iDD, UNI-V once launched, it is sought after by users.
Secondly, the profitability of Changan Automobile continues to improve, and the quality of development has entered a benign channel. Product benefits continue to improve, product profitability significantly improved, in 2021 Changan Automobile's comprehensive gross profit margin has reached 16.6%, an increase of 1.9 percentage points year-on-year. Changan has, as always, adopted a prudent financial strategy to reduce future cost pressures and risks, and adhered to the low capitalization rate of R&D investment, which has been less than 30% in the past three years.
Third, Changan Automobile's innovation continues to improve, and the momentum of high-quality development is even stronger. In 2021, Changan Automobile's R&D investment increased by 24.3% year-on-year, of which new energy investment increased by 60% year-on-year, and software + intelligent investment increased by 89% year-on-year. Also last year, Changan Automobile implemented the equity incentive for core employees, covering more than 1,600 people, granting nearly 100 million shares of shares, and employees contributing nearly 700 million yuan, and the interests of employees and the development of the company were tightly tied together.
The future has come, and the gentleman is not a tool. Changan Automobile will continue to promote technological innovation, marketing innovation, organizational innovation, etc., further break down development obstacles, continuously improve operational efficiency, and continue to build future-oriented core competitiveness.
Accelerate the transformation to new energy and intelligence, and the future can be more promising
In 2017, Changan Automobile released the third entrepreneurship - innovation and entrepreneurship plan, accelerated the transformation to an intelligent low-carbon travel company, accelerated its move towards a world-class car company, and released the new energy strategy "Shangri-La Plan" and the intelligent strategy "Beidou Tianshu Plan", and the third entrepreneurship has been iterated to version 5.0 so far.
Strategize and decide, act and persevere. After clarifying the big development strategy, Changan Automobile has set a step-by-step development goal, by 2025, the total sales volume will reach 4 million vehicles, of which 3 million are Changan brand vehicles, and new energy sales will reach 1.05 million vehicles, accounting for 35%; by 2030, Changan Automobile's sales will reach 5.5 million vehicles, of which Changan brand will reach 4.5 million vehicles, new energy sales will reach 2.7 million vehicles, accounting for 60%, and overseas sales will account for 30%; and Changan will achieve carbon peaking in 2027. Achieve carbon neutrality by 2045.
To achieve the above goals, it is inseparable from Changan Automobile's foresight and continuous improvement. Especially at present, the development of new energy vehicles has become the consensus of the industry and the trend of the times, Changan Automobile has seized the new outlet of industry development and accelerated the layout of new energy.
In terms of brand, Changan pays attention to brand innovation and rejuvenation, and will continue to renew the brand, and has launched a new high-end brand Avita, and a while ago released a new digital pure electric brand Changan Deep Blue. In the future, Changan will further optimize the brand strategy and positioning of UNI sequence, Changan passenger car, Auchan and Kaicheng, and comprehensively transform to electrification and electrification.
In terms of technology, Changan has accumulated deep technical precipitation in the "big three electric" and vehicle integration, and will also build an intelligent electric digital super platform. In the future, Changan will further consolidate the core technical capabilities of new energy vehicles, which includes continuously strengthening the integrated design of energy consumption, reducing the energy consumption of the whole vehicle, and reaching the industry-leading level; breaking through 800V high voltage, power electronic fusion and other technologies, on the 800V electric drive platform, matching the high-rate fast charging core to achieve a charging range of 150-200 kilometers for 5 minutes; breaking through the integrated integration technology of the battery chassis, accelerating the research and development and industrialization of (semi-semi)solid-state batteries; in the future, Changan's research in the field of hydrogen fuel cells is worth looking forward to. Changan is striving to build fuel cell technologies and products with "low hydrogen consumption, high energy efficiency and high safety" to achieve multi-scenario carbon reduction and industrial green upgrading.
In terms of products, Changan will continue to improve product competitiveness, and on the basis of maintaining the competitive advantage of fuel vehicles, it will continue to launch 8 new energy products on a large scale and with high frequency, including C385, C673, Avita E11, LUMIN and UNI sequence hybrid models, which will be listed and available successively. By 2025, Changan will launch at least 26 new energy products.
In terms of resource security, Chang'an has a strong and perfect resource guarantee system, which can escort enterprises to achieve strategic goals. Changan implements organizational optimization and reconstruction, promotes the organizational reform of "small headquarters + business group + sharing platform + incubation and innovation", and forms a matrix-type and flat management model; Changan will continue to optimize the construction of talent teams and increase the talent reserve supporting strategic transformation.
Cohesion, forge ahead. In the future, Changan Automobile will take the new energy track as an opportunity to comprehensively accelerate its transformation into an intelligent and low-carbon travel technology company. By 2025, Changan is expected to invest more than 80 billion yuan in key areas such as new energy, intelligence, scientific and technological innovation, and digital transformation, and accelerate the construction of core capabilities in the field of transformation. As Chairman Zhu Huarong said, "Chinese car brands are no longer bystanders or simple followers, but have become runners and even leaders." ”