Halfway through 2021, although the domestic auto market is difficult to say optimistic, Jiangling Motors (000500) still handed over a brilliant report card. On August 27, jiangling motors disclosed the semi-annual report shows that in the first half of the year (January to June), the company achieved vehicle sales of 177,128 vehicles, an increase of 25.45% year-on-year, and the corresponding operating income was 17.676 billion yuan, an increase of 25.60% year-on-year.
However, what is surprising is that the net profit growth rate of Jiangling Motors in the first half of 2021 is as high as 95.03%, far exceeding the growth rate of 25.60% of operating income in the same period.
In 2020, when the epidemic was severe, the overall sales volume of Jiangling Motors reached 331,098 units, up 14.15% year-on-year. Maintain the first place in the field of domestic light passengers, pickup trucks rank second in the industry, and light trucks rank fourth in the industry. In the face of stock competition in market segments, how does Jiangling Motors maintain rapid growth? For the second half of 2021, how does Jiangling Motors look at it?
Coinciding with the Chengdu Auto Show, Dadamaiche came to the Jiangling booth and had a face-to-face exchange with Li Shuang, light passenger brand manager of Jiangling Motors Sales Co., Ltd., on the questions in his heart.
A: No. 27 Jiangling Motors released its 2021 semi-annual report, and the results are very good. Some data growth is relatively fast, some data growth is relatively stable, please Manager Li to introduce us to the sales targets and highlights of the first half of this year?
Li Shuang: From January to July data, Jiangling Motors sold 200,814 units, an increase of 24.57% year-on-year. Among them, light passenger sales of 61140 units, an increase of 35% year-on-year, pickup trucks 38628 units, an increase of 37%, light trucks is about 70,000 units, an increase of about 7%, the entire year-on-year increase data is still good.
A: The financial report shows that the sales revenue growth from January to June is 25.6%, but the profit growth rate is as high as 95.03%, and the profit growth rate is several times the growth rate of sales revenue.
Li Shuang: There are two reasons for this, one is the increase in sales of light passengers, especially the sales of high-end light passengers. The second is to improve efficiency and optimize costs from the whole production process.
A: Can you talk specifically about what are the measures to reduce costs and increase efficiency?
Li Shuang: Cost reduction and efficiency increase are mainly in the production efficiency of the improvement, followed by the optimization of the cost of management. This is due to the fact that in recent years, we have been improving our production efficiency, strengthening our ability to negotiate with suppliers, doing some cost optimization, and at the same time making a series of improvements in management efficiency, reducing unnecessary waste.
A: We found that since 2021, Jiangling has launched many products that adapt to market demand, such as various customized pickup trucks at the beginning of the year. Just now we saw the King of Tessin Space on the booth, what kind of product is this?
Li Shuang: Teshun Space King is mainly a product that makes changes to the customer's car pain points, for example: the internal height of the car is not enough, and it cannot be upright when loading and unloading goods; there are also customers who hope that the internal space is larger, and the goods can be loaded a little more, which is also an efficiency problem of the operation; at the same time, the customer does not want the body to be particularly high, because it is too high, it may not be able to go down to the basement, affecting urban logistics distribution, and many of the basements of urban commercial real estate are limited to 2.5 meters in height. Therefore, we increased the height of the car, but controlled at 2 meters 48, just to pass this height limit, and such a body design, but also to ensure that the loading space in the car is maximized, in comparison, the capacity of the Special Shun Space King increased by 16%, reaching a loading volume of 9.2 cubic meters. At the same time, the height of the car is 1 meter 74, which can be applied to the average height of the nationals, they work in the car of the King of Teshun Space, and they can also stand up straight, solving the pain points of the customer's car.
A: Recently, the Ministry of Industry and Information Technology and the Ministry of Public Security jointly issued the Notice on Further Strengthening the Production and Registration Management of Light Trucks and Small and Micro Passenger Vehicles (Draft for Comment), which puts forward the latest technical specifications for light passenger products.
Li Shuang: This consultation stipulates that the light passenger 9-seater and below models cannot exceed 5 meters 5, and if it exceeds 5.5 meters, it must be arranged for more than 10 seats, then it can only be yellow cards and not blue cards. Therefore, the subsequent car wants to increase the space, and can only be optimized from the height and width. We have also adapted to the needs of regulations and market demand, and launched some products in a timely manner.
The recently listed "Jiangling Teshun Space King" 6-9 seat model, the maximum length of 5.496 meters, the maximum limit under the new regulations, is a blue brand large space light passenger; the external body height of 2.48 meters, can pass the height limit of 2.5 meters of urban road section or basement; the height of the internal car is 1.74 meters, the user can stand directly in the car to load and unload goods, do not bend down to work more easily, compared with other brands of light passengers of the same level have a forward-looking design.
A: There are national policy reasons for the launch of The Shun Space King, so will this policy have an impact on other existing products of Jiangling?
Li Shuang: From the perspective of light passenger products, the current regulations define small and micro ordinary buses as less than 6000mm long and less than or equal to 9 passengers. The upcoming new regulations require that the length of the vehicle with two rows, three rows and above seats for small and micro ordinary buses should be less than or equal to 5500mm before they can be on the blue card.
About 3-5% of our existing light passenger products are more than 5.5 meters long, and we will make some adjustments according to the new regulations. So the impact of this regulation on our products is not particularly large. Our adjustment idea is to do the best in space and quality within the scope of the regulations.
A: As mentioned earlier, the sharp increase in profit in the first half of 2021 is due to the increase in sales of light passengers, so what are the light passenger products of Jiangling?
Li Shuang: Jiangling Ford Light Passenger mainly has three aspects of products, the entry-level has a special shun, the cost performance is very high, the middle and high price has Ford new Trans Shun, the most high-end is the new generation of Trans Shun.
Answer: What is the proportion of sales of these three series? What is the place of the new generation of Transit Pro in our entire product?
Li Shuang: Teshun accounts for 50% of sales, the new Quanshun accounts for 40%, and the new generation of Quanshun accounts for about 10%. Similar to a pyramid module, with the development of the economy and the market, high-end products will sell better and better, I think this proportion, or more reasonable.
A: We saw the new generation of Quanshun Pro at the Jiangling booth this time, which is the most high-end light passenger product, can you introduce this product in detail?
Li Shuang: The new generation of Quanshun Pro is a high-end flagship digital light passenger designed and developed based on user needs, with a new hardcore top product force, innovative concept of digital services, and a double lifetime warranty commitment, to create "Uptime 100% full-time operation solution", becoming a smart car that understands what users think and gives users what they need.
Our new generation of Quanshun has always had a good reputation in the market, and the powertrain uses the Ford PUMA engine, which is also very famous in the entire industry, including its power and fuel performance. Its entire handling performance is flexible. These are the advantages of the new generation of Quanshun.
On this basis, we are the first in the industry to initiate a commitment to a lifetime warranty for engines and transmissions. The new generation of Trans Shun Pro has innovative ideas of digital services, through the intelligent network system can provide OTA remote upgrade services, remote diagnosis services, predictive services, as well as provide spare car, night service, door-to-door pick-up and other full-time worry-free operation solutions. In addition, it can also provide fleet management systems for corporate fleet owners to achieve full-time operation in multi-vehicle conditions.
A: We just talked about the new generation of Trans Shun Pro has a lot of digital services, digital maintenance and so on. In addition to the new generation of Quanshun Pro, will other products vigorously develop digital services in the future?
Li Shuang: The future development of automobiles should be inseparable from digitalization. Jiangling's products will continue to intervene in digital services. We also set up the Star Fulcrum Technology Company in Shenzhen this year, also in order to do some layout and reserves in the later stage of intelligent networking.
There is also a "StarLink" plan within the company, hoping to increase digital transformation of each product from research and development to production to marketing, and even create a digital network ecosystem in the later stage.
Although the specific detailed plans and plans have not yet been made public, more investment and layout will be made in digitalization and intelligent networking. And not only light passengers, including light trucks, follow-up new products of pickup trucks will do more upgrades in the intelligent network connection.
Answer: Digitalization is indeed a trend, if you do not pay attention to this piece, you will face great challenges in the future. Does the company currently cooperate with other companies?
Li Shuang: We have been cooperating with leading enterprises in digital-related industries, such as Huawei.
A: In the 2021 "China's 500 Most Valuable Brands" list, a total of 26 leading brands in related industries were selected, and Jiangling Motors is also on the list, can you give us a detailed introduction to the specific situation?
Li Shuang: This activity is mainly based on a comprehensive ranking of operational indicators, brand strength, and consumer behavior. Jiangling Motors ranked 178th in the list, with a brand value assessment of 42.596 billion yuan, demonstrating the strong brand strength of Jiangling Motors. This is also the result of Jiangling's continuous maintenance and strengthening of the brand, and it is also the recognition of consumers and the industry.
A: The impressive results achieved in the first half of the year will not be particularly stressful for the second half of the year?
Li Shuang: In fact, fortunately, the pressure of sales is every day, except for the last day of December and the first day of the new year, which is also a sentence that our leaders emphasize to us.
We have predicted at the beginning of the year that sales will be better in the first half of 2021, and may fall back in the second half of the year. There will definitely be pressure and can only be actively coped with.
A: What are the envisaged goals for the second half of the year? Will you be able to meet your full-year targets?
Li Shuang: At present, there is no big problem, this year's light passengers continue to maintain the position of the first in the industry, and hope to sprint to the goal of 100,000 units. In China's light passenger industry, there is no light passenger product can reach 100,000 units a year, and the market capacity of light passengers is relatively small, and the market capacity of light passengers is about 300,000 units a year. If we sprint to 100,000 units, we will occupy one-third of the market.
Answer comment: The narrow road meets the brave to win. In a market that basically belongs to the stock, Jiangling Motors can continuously maintain rapid growth, and even create a record record of winning one-third of the light passenger market, relying not on luck, but on strength and boldness.
Jiangling's marketing team has solid market research, for policy adjustments, user pain points, and constantly do a good job in product improvement, and even some advances, not only to comply with market demand, but also to create market demand. It is this strategy that ensures that Jiangling has been keeping the first in the domestic light passenger market step by step.