Revenue and Net Profit Drop, Saic Releases Its 2020 Financials.

On March 25 evening, SAIC released its 2020 annual report, which shows that in 2020, the net profit attributable to shareholders decreased 20.2% to about CNY 20.431 billion, and the operating income fell 12.52%, reaching CNY 723.043 billion on a year-over-year basis.

In terms of production and sales, the company sold 5.6 million vehicles, down 10.2%. Among them, the sales volume of new energy vehicles boosted 73.4% to about 320000, ranking the first in China and third globally, while the total overseas sales volume rose 11.3% to 390000, accounting for more than 1 / 3 of the total vehicle export in China.

When it turns to the second half of 2020, the sales volume increased both on a year-on-year and quarter-on-quarter basis, which is better than the industry average.

In regards to expenditure, SAIC's operating costs, sales expenses, and management expenses all declined slightly, but research and development expenses maintained positive growth compared with the last fiscal year. However, due to the increase in exchange losses, the financial expenses swelled nearly 20 times, meeting a staggering CNY 517 million.

In terms of the overseas market, SAIC's products and services had entered more than 60 countries and regions in the world, and nine 10000-vehicle markets had been promoted. The annual sales volume in the Middle East, India, and Thailand markets had reached 30000 vehicles, and in the European market, SAIC's own brand sales had exceeded 40000 vehicles, of which new energy vehicles accounted for 60%.

In response to consumption upgrading and technological improvement, SAIC's subsidiaries launched more than 40 new products in order to grab a considerable share in the high-end intelligent electric vehicle market. It is also worth noting that SAIC also joined Alibaba and Zhangjiang Hi-tech to establish the brand of IM.  

For further expansion, SAIC said that it would transform itself into a high-tech enterprise and promote the development of the technology of intelligent electric vehicles in the future. Meanwhile, it proposed to achieve 6.17 million vehicle sales in 2021.  

SAIC expected the future trend of the domestic new energy vehicle market to enter a new stage of fluctuating growth in the long term. It estimated that in 2021, the domestic automobile market would possibly end the continuous decline since 2018, and the demand for vehicles would increase 3.1% to 26.1 million. In particular, the sales volume of new energy vehicles, as predicted, would leap 34%, concluding 2021 with about the volume of 17.7 million.