Author：Qing Yuan

Compile：value

Source: GPLP

On June 3, people were refreshed by the news that Wuling Started to sell Pickups, a vending machine, which is the equipment for the street-stall economy.

On May 14, Wuling Motors (00305.HK) announced a release that “It is expected to record a net loss of about RMB 166,615,000 for the year ending December 31, 2019, compared with the preliminary unaudited results announcement, the reported value is RMB 1,145,000 for the net profit.

Wuling said the loss and the sharp increase in loss per share were due to an increase in impairment losses on property, plant and equipment in its engine and related components division and its auto parts and other industrial services division.

On March 31, Wuling released its unaudited performance in 2019, saying that its total revenue decreased by 5.9% year on year to 14.224 billion yuan (the loss attributable to unit shareholders was 21.232 million yuan, and the profit in the corresponding period of 2018 was 70.673 million yuan, with a loss of 1.04 cents per share.

Wuling has not released its audited annual report for 2019 until now.

Unlike other carmakers, which are losing money because of poor sales, Wuling sold 116,000 special-purpose vehicles in 2019, up 5.3% from 2018.

In addition, Shanghai GM Wuling, jointly founded by Wuling Motors Co., LTD., SAIC Motor Corporation and General Motors (China) co., LTD., sold 1,660,007 new cars in 2019, a year-on-year decline of 19.42%, making it the no.1 selling company in China.

Compared with other domestic brands, Geely Auto sold 1,361,560 vehicles in 2019 with revenue of 97.401 billion yuan and net profit of 8.3 billion yuan.As you can see, selling is not always profitable.

Wuling, with its lower pricing and level, also has lower interest rates on its motors, which makes the group less profitable. As a result, it loses money even though its sales are far ahead of those of other manufacturers.