JAC's Operating Revenue Breaks 50.992 Billion Yuan in 2018

On April 30th , Anhui Jianghuai Automobile Group Corp., Ltd. released its 2018 annual report. The annual report shows that the company's operating revenue in 2018 increased by 1.92% year-on-year to 50.992 billion yuan. According to statistics, this is the second time that JAC revenue has passed the 50 billion yuan in the past 10 years. Following is People.cn detailed report:

According to the data provided by the China Association of Automobile Manufacturers: China's auto sales in 2018 fell by 2.76% year-on-year, showing negative growth for the first time in the past 28 years. During the industry adjustment period, JAC achieved the above-mentioned good performance, which is no easy task. By reviewing the company's annual report, we can find that the excellent performance of the four major sectors, such as commercial vehicles, new energy passenger vehicles, international exports, and auto finance, has laid the foundation for its upward trend. According to the 2019 quarterly report released by the listed company on the same day, JAC achieved revenue of 14.633 billion yuan, a year-on-year increase of 13.76%, showing a continuous growth trend with net profit of 64.635 million yuan.

Highlights in Many Business Segment

In the commercial vehicle business segment, JAC sales volume of domestic commercial vehicles exceeded 230,000 in 2018. Among them, light commercial vehicles sold nearly 200,000 vehicles in the whole year, ranking second in the industry; new energy commercial vehicles sold nearly 3,600 vehicles in the whole year, a significant increase of 380% year-on-year;

In the new energy passenger vehicle business segment, JAC has performed positively. Under the background that the subsidies for new energy vehicles decreased, in 2018, JAC achieved more than 60,000 units’ sales of new energy passenger cars, an increase of 80% over the same period in the industry environment. According to statistics, by the end of 2018, JAC has sold 118,000 new energy passenger vehicles.

In 2018, JAC's international export business achieved a historical breakthrough with the total exportation of 74,000 units, up by 13% year-on-year, which was the first time that the exportation has passed 70,000 units, ranking fourth in China's automobile export with an industry share of 7.5%. Among them, the middle and high-end light truck exports ranked first in the industry; pickup exports increased by 49%, ranking fourth in the industry; passenger car exports were 54,000 units, an increase of 17% year-on-year, and ranking fourth in the industry.

In addition, in the automotive finance field, which is helpful to promote the growth of the company's main business, FAF, a joint venture established by JAC and Spain's Santander, and Hefei Jianghuai Automobile Finance Guarantee Co., Ltd., which is wholly-owned, have performed well.

Plan Ahead to Overcome the Difficulties

In recent years, JAC have adhered to the transformation and upgrading to the mid-to-high end, focusing on the strategy of “strengthening and expanding commercial vehicles, making excellent passenger cars, and vigorously developing new energy vehicles”, focusing on “simplification” and “excellence”. Specifically, commercial vehicles further increase the proportion of Cummins power and self-production power, strengthen channel transformation, increase scale, optimize product structure, and improve profitability; passenger cars focus on customer value, optimize product structure, and enhance product profitability, while the international market is developing steadily, improving its international competitiveness and its ability to resist risks.

Beyond the strategic planning level, JAC continues to deepen its open cooperation. In the current development of the automotive industry, open cooperation is an effective way to improve the efficiency of global resource allocation, and an important way to learn international advanced standards and intelligent network technology. The open cooperation has also brought many immediate development dividends to JAC. For example, the cooperation with Volkswagen has led to the birth of China's first Sino-foreign joint venture new energy auto company, expanding the cooperation between JAC and new world-famous enterprises in new business areas such as mobile travel, vehicle interconnection and big data, and boosting China's new energy tech development and the internationalization of the industry; the cooperation with Baidu has enabled JAC to obtain comprehensive solutions for high-precision maps, self-positioning, environmental awareness, decision-making and other key aspects of automatic driving. The auto-driving model of cooperation between the two parties will be launched in the second half of the year...

At the beginning of 2019, JAC mobile travel brand “Hexing On-line Hailing” was officially launched, marking the official entry of JAC into the On-line hailing car industry. It is reported that after the official launch of “Hexing On-line Hailing”, it will provide users with a safe, fast, comfortable, green and satisfactory one-stop smart travel solution.

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China Special Vehicle Adivsor