Is it difficult to make a profit by building a car? See how the seahorse "operates"!

In 2019, the auto market was in dire straits. Even Geely, the “big independent brand”, experienced a sharp decline in profits, let alone others. What is unexpected is that a fringe car company has turned a profit!

On March 31, Haima Motor released its 2019 financial report. The report shows that Haima Motor's operating income in 2019 was 4.69 billion yuan, a decrease of 7.06% compared to 2018, while the full-year net profit reached 85 million yuan, achieving profitability for the first time in four years! According to the report, this is due to a number of initiatives such as "optimizing resource allocation, revitalizing existing assets, disposing of idle assets, and increasing the company's cash flow." The "translation" is that Haima sold idle properties and transferred equity in subsidiaries last year, which greatly improved its operating conditions.

Note that because Haima Motor’s audited net profits were negative for two consecutive fiscal years in 2017 and 2018, the Shenzhen Stock Exchange issued a “delisting risk warning” for Haima Motor’s stock in April 2019. , now according to the rules, Haima can apply to take off the "hat" of *ST.

In order to build a car, Haima chose to sell his house and "sell his son"

Last year, Haima found that some of his cars could not be sold, so he had no choice but to launch a self-rescue plan by selling his house and trying to save the "shell". It has to be said that traditional car companies are really big businesses and have solid foundations. Haima plans to sell 401 properties in Haikou and Shanghai. Haima's latest annual report shows that in 2019, the company disposed of 342 idle properties and obtained disposal income of 161 million yuan. After deducting disposal costs and expenses, the company obtained disposal income of 135 million yuan. Although selling a house can make money quickly, it is not enough.

Car companies that are worried about profits may still need a rich chairman. In May last year, Jing Zhu, the founder of Haima Motors, was appointed as chairman of the board of directors again. In order to improve the company's financial situation, he tried every means to take over the equity of some of Haima's subsidiaries. In July last year, Qingfeng Real Estate, controlled by Jingzhu, transferred the equity of Haima Property for 116 million yuan, affecting the listed company's net profit attributable to the parent company of 107 million yuan; in September last year, Ruizhishang Industrial, also controlled by Jingzhu, paid 808 million yuan for The transfer of 100% equity of Haima R&D affected the listed company's net profit attributable to the parent company to 461 million yuan. After several changes of hands, Haima received related income totaling 674 million yuan.

“If you have a house in hand, don’t panic when building a car.” While Haima is actively selling houses, it is also building houses. Haima Motors entrusted the Haima Guild Hall Construction Company controlled by Jingzhu to build the "Jinpan Garden Phase II (Area)" commercial housing project. According to the contract signed by both parties, Haima Motors has already locked in a large amount in advance. Net profit of 100 million yuan. Haima’s latest annual report shows that the company also owns three pieces of land to be developed: Shishan Resort, Yonggui Development Zone, and American Industrial Village in Haikou. These are all priceless real estate.

Self-rescue and innovation, the main business is struggling to move forward

Of course, selling houses and transferring equity interests in subsidiaries are emergency measures. If Haima is to be able to operate for a long time, the main business must have "blood production" "ability. In 2019, Haima sold 29,456 vehicles, with sales falling 56.41% year-on-year. You know, strictly speaking, Haima is not a small car company. It has some background as a state-owned enterprise, it once had technical foundation, and it was once famous.

The main reason for the decline of Haima is that the product update speed is slow, the products are out of touch with the market, and its models are weak in terms of product power, competitiveness, and brand influence. During the market downturn, competition became increasingly fierce, the product strength of Haima models was not strengthened in time, and the product matrix was never perfect. In addition, seahorse quality problems occur frequently and the workmanship level is not high. Uncle Che once reported that a new Haima 8S car had only traveled 600 kilometers and had rust on the chassis. It turned out that all the cars in the local 4S store were rusty.

After taking office, Jingzhu stated that he would "rebuild Haima" and "return to the front line." In July last year, Haima released its blockbuster model Haima 8S, launching an Internet direct sales model. In terms of product strength, Haima 8S continues to focus on "strong power". Its 1.6T GDI engine was rated as one of the top ten engines of "China Core" in 2019. The car accelerates to 100 kilometers in only 7.8 seconds. In terms of appearance, practicality, The richness of configurations and other aspects have also been improved, but the Haima 8S was born at the wrong time. After its launch, sales were mediocre, and there were even quality and workmanship problems mentioned by Uncle Che, which can't help but make people feel ashamed.

In addition, Haima has made achievements in the fields of new energy and intelligent network connection last year, developing a new variable electric platform with completely independent intellectual property rights, and actively developing new supporting materials for new energy. The Internet of Vehicles activation rate of Haima 8S has reached 96.1%, and the autonomous driving platform has achieved a parking space recognition accuracy of 98.6% and a parking success rate of 75%. Although it is difficult, Kaiba is trying hard to keep up with the trend.

This year, Haima is facing a more severe market environment. Affected by the epidemic, Haima only sold 134 units in the first two months of this year and produced only 630 units of Xpeng G3. The output of its own brand was zero. It is not yet known what the data will be in March. As demand for car purchases recovers, Haima's main business is still facing tremendous pressure.

Uncle Che’s conclusion

As the saying goes, “If you don’t advance, you will retreat.” Once Haima falls behind, it will be very difficult to catch up. However, as a career in car manufacturing, Haima retains its original intention and is determined to make a comeback against the odds, which deserves recognition. We shouldn’t laugh too much at Haima’s self-rescue actions such as selling houses and transferring equity in subsidiaries. Fund guarantee is only one aspect. Haima must also make great efforts to eliminate internal stubborn problems and re-understand the market. When there are no assets to sell in the future, Haima will have to face the reality of being eliminated.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.