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Recently, Guanghui Automobile announced its 2023 annual report, and the main data are as follows:
Main operating data in 2023:
In 2023, Guanghui Automobile will achieve operating income of 137.998 billion yuan, an increase of 3.34% over the same period of the previous year.
In 2023, Guanghui Automobile will achieve new car sales of 595,700 units, an increase of 1.07% year-on-year.
In 2023, Guanghui Automobile will achieve 6.90 million maintenance units, a year-on-year increase of 12.62%, and the unit price of after-sales maintenance customers will be 2,004.23 yuan, an increase of 0.9% year-on-year.
In 2023, Guanghui Automobile will achieve a total of 117,800 second-hand car transactions.
In 2023, Guanghui Automobile's net profit will be 629 million yuan, of which the net profit attributable to shareholders of listed companies will be 392 million yuan, which is a significant increase from the previous year (net loss in 2022 will be 2.719 billion yuan).
In 2023, Guanghui Automobile's new car sales will return to positive growth after three consecutive years of negative growth.
In 2023, Guanghui Automobile's gross profit margin for new vehicles will be 1.65%, and the gross profit margin for maintenance services will be 31.34%.
In 2023, Guanghui Automobile's performance will finally have a big reversal. So, what means has Guanghui Automobile taken to turn the business into a profit?
Guanghui Automobile Business Analysis
1. Strengthen brand management
Improve the organizational structure, on the basis of the original regional management, improve the brand management system, improve management efficiency, and promote the integration of resources.
In terms of organizational structure, with the brand as the main line and the store as the main body, we will strengthen the overall planning of the brand and smooth the internal and external circulation.
Internally, we will integrate the resources of each store, adjust the model structure of a single store in a timely manner, and reduce the adverse impact of the sharp drop in the price of new cars in the market.
Externally, deepen communication and cooperation with OEMs, and strive for more high-quality resources and policies of manufacturers.
2. Optimize the brand structure and close 50 stores
In 2023, Guanghui Auto will comprehensively sort out stores with low return on assets, close 50 stores with low profitability, and complete the brand conversion of 17 stores. Guanghui Automobile also regularly sorts out key resources such as land, real estate, and stores, and actively seeks external cooperation to revitalize assets.
As of the end of the Reporting Period, Guanghui Automobile had established a passenger car distribution network covering 28 provinces, autonomous regions and municipalities directly under the central government, distributing more than 50 passenger car brands, operating 735 business outlets (including 695 4S stores) and 245 ultra-luxury and luxury brand outlets.
3. Online and offline integration and empowerment of sales and services
In terms of new car sales, we will implement targeted marketing strategies.
First of all, Guanghui Automobile adopts refined management and control of sales operations, enhances the management granularity of different cities, brands and models, and analyzes the purchase and sales difference and inventory through the insurance data of the automotive industry and the market performance of the company's local stores.
Secondly, conduct joint negotiations with multi-brand manufacturers to strive for favorable business policies and ensure reasonable inventory turnover.
At the same time, it will increase online marketing efforts, expand the channels for obtaining clues, encourage its stores to fully invest in live broadcast business, achieve new sales growth points outside the exhibition hall, and reduce the negative impact of market price competition.
In 2023, in terms of after-sales business, Guanghui Automobile will rely on basic customer resources to carry out online and offline omni-channel after-sales business promotion activities to increase customer stickiness and increase the proportion of customers returning to the factory.
First of all, we use digital tools to conduct in-depth analysis of customers' car habits and maintenance cycles, and maintain regular communication with customers to ensure the punctuality and accuracy of customer service and enhance customer stickiness.
Secondly, use a variety of communication channels such as self-media, WeChat, Douyin, and live broadcast to publicize after-sales activities, enhance interaction with customers, attract customers to visit stores, and increase customer retention.
At the same time, by building a customer portrait model of information data, we can dig deep into the specific needs of different brand customer groups, introduce new products and new service providers, realize the personalized service promotion of the whole brand, and meet the diversified needs of customers.
4. Continue to increase the size of new energy vehicles
By the end of 2023, Guanghui Automobile has established close contact and communication mechanisms with more than 20 mainstream new energy brands, such as AITO, AVATAR, VOYAH, Mengshi, Great Wall Ora, Haval New Energy, Xpeng, Chery ICAR, Chery Xingtuxing Era, Chery Fengyun, Geely Galaxy, Changan Deep Blue, Lotus, etc., and the coverage of new energy brands has been further expanded.
At present, Guanghui Automobile has successfully applied for the authorization of 54 new energy stores, 26 have been completed and put into operation, and 15 are being applied.
Guanghui Automobile has built a nationwide after-sales service network, and has taken the sheet metal spraying center as a breakthrough to explore diversified cooperation opportunities with new energy OEMs in the aftermarket field, and build a new energy vehicle aftermarket service system covering the whole value chain.
In 2023, Guanghui Automobile's new energy vehicle sales will increase by 82.25% year-on-year.
5. Cultivate new momentum for the export business of second-hand cars
In 2023, in terms of traditional business, Guanghui Automobile will deepen the operation of 4S stores, focusing on improving the replacement and acquisition business.
In terms of used car export business, Guanghui Automobile is based on the Central Asian and Russian markets and expands its used car export business.
In terms of auction business, Guanghui Automobile has established cooperative relations with a number of well-known e-commerce platforms, which has improved the market exposure and transaction efficiency of second-hand cars.
In addition, the second-hand car trading platform "Auto Street", in which Guanghui Automobile participates in equity investment, has taken an important step towards its IPO in Hong Kong, which is expected to empower Guanghui's second-hand car resource ecosystem.
6. Innovation in financial leasing business
In terms of financial leasing business, on the one hand, Guanghui Automobile has deepened the exploration of its own store business scenarios, and launched differentiated financial products that are different from banks and auto finance companies through diversified methods such as high-quality financing and value-added financing, so as to meet the personalized needs of different customer groups.
On the other hand, while expanding the scope of cooperation with major mainstream OEMs and increasing the number of low-risk leasing products with discounted interest rates, it also cooperates with Internet car rental platforms to increase the business proportion of direct leasing and operating leasing products.
In addition, in terms of risk management, Guanghui Automobile has continuously improved customer portraits and risk control models by upgrading the intelligent decision-making engine and iterating product scorecards, effectively improving risk identification and prevention and control capabilities.
In 2023, Guanghui Automobile will complete a total of 126,000 leasing units, with a new lease financing amount of 7.441 billion yuan, and as of December 31, 2023, the company's interest-bearing assets will be 11.324 billion yuan, with a 30+ overdue rate of 1.94%.
7. Let the financial management system help enterprises reduce costs and increase efficiency
In 2023, Guanghui Automobile will actively build an intensive and efficient platform support system, and further achieve "cost reduction and efficiency increase" by promoting the platformization of functional departments.
In terms of the construction of the financial management center, Guanghui Automobile has opened up the financial sharing mechanism of all stores, increased the refined analysis and control of costs and expenses, dynamically tracked fixed expenses and variable expenses, and strengthened the real-time supervision of the financial status of the whole network stores.
In terms of the construction of the fund management center, Guanghui Automobile strengthened the overall planning and dispatch of various funds by the headquarters, improved the financial and capital resource sharing mechanism of each store, fully excavated and recovered the internal operating cash flow and improved the efficiency of the use of its own funds under the premise of ensuring production and operation.
In addition, through the procurement of related assets and resources in a group manner, we will continue to reduce procurement costs and maximize the scale advantages of the platform.
As of the end of 2023, Guanghui Automobile's asset-liability ratio was 63.97%, down 1.13 percentage points from the same period last year. The interest-bearing liabilities at the end of the year fell to 51.353 billion, maintaining a quarter-by-quarter decline throughout the year, a decrease of 1.261 billion from the beginning of the year.
The core competitiveness of Guanghui Automobile
According to the annual report of Guanghui Automobile, the core competitiveness of Guanghui Automobile is mainly reflected in seven aspects.
First, channel advantage
Guanghui Automobile has more than 50 passenger car brands ranging from ultra-luxury, luxury to mid-to-high-end, and as of the end of the reporting period, it operated 735 dealership outlets, covering 28 provinces, autonomous regions and municipalities directly under the central government, making the company have 16.15 million base customers.
The extensive network layout and rich brand resources avoid the dependence on a single brand or region, which not only effectively reduces the cost of building new channels, but also improves the company's operation and management capabilities and cyclical anti-risk capabilities.
Second, scale advantage
As a super-large passenger car distribution service group, Guanghui Automobile can obtain the low-cost advantage brought by the scale effect, and transform the cost advantage into the actual profit of the enterprise. The scale effect can also further empower the brand influence, which is conducive to the continuous integration of industry resources and the steady and healthy development of enterprises.
Third, information technology
Guanghui Automobile has invested a large amount of money to introduce SAP to jointly build the most suitable ERP system for the company, effectively realize the control of standard business processes and key internal control points, greatly improve the company's management transparency and management efficiency, and provide a strong guarantee for the company's refined management.
Fourth, talent development system
Guanghui Automobile adopts a four-level stage selection mechanism, selects and cultivates reserves at all levels, builds a smooth employee promotion channel, and consolidates the construction of the company's talent echelon.
Fifth, business innovation capabilities
Guanghui Automobile explores innovative marketing models, creates new online consumption channels, expands new value-added services and derivative businesses, and lays the foundation for developing a new business development path.
Sixth, diversify financing channels
In addition to maintaining strategic partnerships with major financial institutions to form a capital cost advantage, Guanghui Baoxin, a subsidiary of Guanghui Automobile, is listed on the main board of the Hong Kong Stock Exchange, providing an important channel for obtaining financing from overseas financial institutions.
Diversified financing channels include: equity financing instruments, debt financing instruments and asset-backed securitization.
Seventh, high-quality stock assets
As of the end of the reporting period, the company owned 5,432.92 acres of land, most of which are distributed in first- and second-tier cities across the country.
Data source: 2023 Guanghui Automobile Annual Report
Article source: Guanghui Auto, SG Auto Automobile Operation and Service, thank you