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Topping the Level of 40 million yuan, BAIC Group Makes a Good Start in the“13th Five-Year Plan”Period

2017-01-17

Just a few months ago in 2016, BAIC Group reported once again a new historical high in major operation indicators and started the “13th Five-Year Plan” period with an outstanding overall vehicle sales performance and leading the five major auto groups in growth rate. Last year, the whole group realized sales of overall vehicles of 2.847 million sets, up 15% y-o-y, 1.3% higher than others in the industry and lifting its market share to 10.2%, of which overall vehicle exports reached 88,000 sets, better than any other in the industry; the operating income stood at 406.1 billion yuan, up 17.9% y-o-y, above the quota of annual challenge goal. 

Independent brands upgraded and improved efficiency, and new energy vehicles kept leading.

In 2016, BAIC Group realized overall total sales volume of independent brand vehicles of 1.375 million sets(including passenger car and commercial vehicle), accounted for 48.3% of the Group’s overall sales volume of vehicles, almost half of BAIC Group’s sales volume. 

A major breakthrough was made in the new energy vehicle, which was the most important strategic business of BAIC Group. BAIC BJEV kept leading in the industry and realized the sales of 52,000 sets in the year, an increase of 1.59 times y-o-y. Its main product EU260 won global champion in sales volume in October, BAIC BJEV successfully won the first license for production of new energy vehicles in China, and the forward-developed “Nationals” went offline smoothly, laying the foundation for growth of sales volume of this year.

Strategic transformation was steadily advancing, and manufacturing service industry support was intensified

New energy, general aviation, and international business, emerging industries of BAIC Group, reported improving performance. Beijing General Aviation gradually improved overall industrial chain of general aviation, took the path of healthy and virtuous development, and reported outstanding performance in the cooperation with the General Administration of Sport of China, the National Parachuting Team, and in 2016 Zhuhai Airshow. 

In 2016, BAIC Group continuously witnessed steady performance in businesses of components and service trade, Hainachuan and Penglong platforms achieved profit of 2.47 billion yuan and 1.43 billion yuan with sharp growth and reached the challenge goals. Penglong Platform actively developed “New Economy”, Heimaxiuche and Chekachuxing showed vigorous vitality with precise differential positioning and scenario-based service. The project of BAIC Mobility was smoothly advancing and will do its best to guarantee government, central organization official, and all public uses of vehicles, to build its brand while properly performing service, to make contributions to the transformation and development of BAIC Group. The strategy of gradual implementation of “Two Transformations”, BAIC Group kept optimizing its business structure and witnessed new growth points constantly emerging. 

JV cooperation continuously deepens and industrial layout became more complete.

Beijing Benz seized the market opportunity of consumption upgrading and won the market with comprehensive advantages in technology, brand and product, and with sales income of 90.48 billion yuan, up 27.7% y-o-y. Beijing Hyundai showed sales of 1.142 million sets and operating income of 115.42 billion yuan above the goal, which was the 4th year with annual sales over 1 million sets of Beijing Hyundai since 2013, making its cumulative sales volume up to 8 million sets. In 2016, BAIC Motor Corporation Ltd. acquired 35% of Fujian Benz equity, having a clear-cut layout in high-end commercial vehicle market. 

On August 30th 2016, joint investment by BAIC South Africa Auto Manufacturing Co., Ltd. and BAIC Group, South Africa Industrial Development Corporation was established, becoming the largest green field investment project in South Africa over the past 40 years. On Dec.27, 2016, BAIC Yunnan Ruili Auto Co., Ltd. project was completed and put into production, operation from engineering construction. BAIC Group’s international business development is developing to higher stage of all-round resources output of product, technology, management and brand from simple service trade mode. 

Facing new situations in 2017, Chairman Xu Heyi in view of the country pointed out that, 2017 is an important year to implement the “13th Five-Year Plan” and deepen supply side structural reform. For BAIC Group, 2017 is the year to deepen the implementation of transformation and to charge forward to build independent brand. The work of transformation and development of “Two-type (new-type industrialization and resources-efficient-type)” enterprise will be intensified, the work of independent brand upgrading and improving efficieny will enter the stage determining the victory, JV cooperation will need new energy and improving industrial chain will create new value. BAIC Group will deepen supply side structural reform, which is designed with the final purpose of meeting demands, and mainly focus on improving supply quality and fundamental way of deepening reform. 

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