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On the evening of April 24, Chervon Automobile (603982. SH) released its annual performance report, saying that its operating income in 2023 will be about 2.135 billion yuan, an increase of 22.37% year-on-year, and the net profit loss attributable to shareholders of listed companies will be about 565 million yuan.
In terms of products, the company's new energy auto parts contributed to the main revenue growth, its revenue increased by 81.68% over the previous year, accounting for 54.90% of the overall revenue, while the company's other product revenue has declined to varying degrees, among them, automotive steering and brake parts, other auto parts, household appliance parts revenue fell 42.92%, 41.01% and 39.05% respectively.
This is not the first time Chervon has lost money. In 2022, Chervon Automobile's net profit attributable to the parent company will lose 154 million yuan, and with the loss in 2023, the company's total loss in 2 years will exceed 700 million yuan. From its listing in 2019 to 2021, Chervon Automobile has continuously achieved profitability.
According to public information, Chervon Automobile is mainly engaged in the research and development, production and sales of aluminum alloy and ferrous metal auto parts, and its products are mainly used in the transmission system, engine system, steering and braking system, heat exchange system and motor and electronic control system of new energy vehicles.
Regarding the performance changes, the company explained that in 2023, the company is still in a period of strategic transformation from traditional auto parts to new energy auto parts, benefiting from the accelerated development of the domestic new energy vehicle industry and the release of the company's production capacity, the annual operating income will be 2.135 billion yuan, an increase of 22.37% over the same period of the previous year, and the new energy business will account for 55% At the same time, in recent years, the company has built new factories in Ma'anshan, Anhui Province and Hungary in Europe, and the fixed costs have increased significantly due to large investment, and the fixed costs have not been diluted accordingly due to the ramp-up period of production capacity, and the company's many new projects are in the process of ramp-up in the initial production efficiency and straight-through rate, resulting in higher unit variable costs and higher expenses during the period, resulting in a net profit loss for the company.
Titanium Media APP noticed that the above statement is basically the same as the reason for the loss in 2022, when in the announcement, Chervon Automobile also mentioned strategic transformation, new energy product production capacity ramp-up and other reasons, and Chervon Automobile summarized this loss as a "strategic loss".
According to the data, in 2023, the company's operating costs will reach 2.136 billion yuan, an increase of 35% year-on-year. Among them, sales expenses soared from 8.1655 million yuan in 2022 to 35.479 million yuan in 2023, more than 3 times. In 2023, the company's management expenses will also reach 20.9428 million yuan, a year-on-year increase of 47.70%.
At the same time, the net cash flow from operating activities of CHERVON Automobile was -328 million yuan, mainly due to the increase in operating losses, and the net cash flow from investment activities of the company was -628 million yuan, mainly due to the decrease in fixed asset purchase and construction expenditure due to the gradual completion of the construction of the Maanshan plant and the Hungarian plant.
It is worth noting that the company has inflated its debt even more rapidly. In terms of interest-bearing liabilities, in 2023, the company's short-term borrowings increased by 32.51% to RMB1.172 billion, and long-term borrowings surged by RMB400 million to RMB1.333 billion in the last year and a half. Its debt-to-asset ratio will reach 65.98% in 2023 and rise again to 68.48% in the first quarter of this year. An all-time high.
At the same time as the annual report was announced, Chervon Automobile also released the first quarter of 2024, and the performance announcement showed that in the first quarter of this year, the company's revenue was about 504 million yuan, an increase of 12.83% year-on-year, and the net profit loss attributable to shareholders of listed companies was about 141 million yuan.
The company responded that in terms of profit, the company is still in a state of loss due to a combination of factors such as large capital investment in the early stage and the scale effect has not yet emerged, rapid growth in interest expenses, losses from the disposal of some assets, and seasonal fluctuations in the business. However, the company's gross profit in the reporting period improved significantly year-on-year and turned positive. (This article was first published on the Titanium Media APP, author|Yu Ying)