The market value has shrunk by 120 billion! Guanghui Automobile, the "darkest hour" is coming

Kanjian Finance

2024-06-27 10:00Creators in the field of finance and economics

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01 Guanghui Automobile's share price fell for four consecutive trading days, with a market value shrinkage of more than 120 billion, and the current stock price closed at 0.78 yuan per share.

In 022023, Guanghui Automobile still ranked 103rd in the Fortune China 500 list, but its performance began to decline since 2018.

03 Guanghui Automobile is facing a delisting crisis, and its share price has been below par value for a long time, with revenue of 137.998 billion in 2023, but net profit of only 392 million.

04In order to meet the challenges, Guanghui Automobile has reached cooperation with more than 20 new energy vehicle manufacturers and applied for 52 stores.

Technical support is provided by Tencent Hybrid Model

Sigh! Guanghui Automobile, the former dealer giant, is now on the verge of delisting at face value!

At the opening of the market on June 26, Guanghui Automobile continued to be "crushed" by hundreds of thousands of sealed orders on the falling limit, and this is the fourth consecutive trading day that its stock price has fallen to the limit. Fortunately, on the same day, Guanghui Automobile opened the fall limit, and then the stock price rose rapidly, and finally walked out of the trend of "earth and sky".

As of the close of the day, Guanghui Automobile's share price closed at 0.78 yuan / share, with a total market value of 6.42 billion, compared with the highest point of 16.15 yuan / share, Guanghui Automobile's share price has fallen by 95%, and the market value has shrunk by more than 120 billion.

Although the stock price has finally opened the fall limit, the stock price of Guanghui Automobile is still not out of danger, and the crisis of delisting is still hanging over the head of Guanghui Automobile.

Guanghui Automobile's current situation inevitably makes people sigh. As a former top car dealer and dealer, Guanghui Automobile still ranks 103rd in the 2023 Fortune China 500 list.

Fall off the altar

Back in 2002, Sun Guangxin, who "made a fortune" with his real estate business, set his sights on the automobile market.

At that time, the domestic automobile industry was just in its infancy, and Sun Guangxin resolutely entered the automobile dealer industry. With its own strong strength, the Guanghui Group behind Sun Guangxin has continuously carried out "mergers and acquisitions" in Xinjiang, Guangxi, Henan and other places. According to reports, at that time, Guanghui Group included a number of automobile sales enterprises, and a huge network of automobile dealers was gradually formed.

In 2006, Guanghui Automobile was formally established.

In the four years since its establishment, Guanghui Automobile has successively completed the acquisition of automobile dealerships in Anhui, Chongqing, Gansu, Hebei, Ningxia, Shandong and other places. After a series of acquisitions, in 2012, Guanghui Automobile jumped to the top dealer of the country's leading car companies, and three years later, Guanghui Automobile completed the listing through backdoor.

However, the glory of Guanghui Automobile did not last long.

According to the financial report, since entering 2018, Guanghui Automobile's performance has begun to peak and fall, in 2018-2020, Guanghui Automobile achieved net profit of 3.257 billion, 2.601 billion and 1.516 billion respectively, and the net profit growth rate was -16.27%, -20.16% and -41.72% respectively. Although the performance in 2021 showed a slight recovery, in 2022, Guanghui Automobile ushered in the "darkest moment", with a huge net profit loss of 2.669 billion yuan that year, and a net profit growth rate of 265.92%.

Why is there a sudden huge loss in performance?

According to the financial report, the pre-tax loss in the fourth quarter of 2022 reached 4.147 billion yuan, and the loss was caused by the decline in gross profit caused by large-scale store closures and discounting and destocking under the influence of macro external factors, and the increase in costs caused by "shutdown and merger" in the process of transformation from fuel vehicles to new energy.

Of course, this is indeed true, after all, there are external uncontrollable factors in 2022, but the huge loss in 2022 has also become a turning point for Guanghui Automobile.

From the perspective of stock price, Guanghui Automobile, which was not performing very well, will fall by 18.1% in 2023. In 2024, Guanghui Automobile's share price has ushered in an accelerated decline, and now in less than half a year, Guanghui Automobile's share price has fallen by more than 50% again. As of the close of trading on June 26, Guanghui Automobile's share price closed at 0.78 yuan / share, with a total market value of 6.42 billion, compared with the highest point of 16.15 yuan / share, Guanghui Automobile's share price has fallen by 95%, and its market value has shrunk by more than 120 billion.

From the current point of view, Guanghui Automobile has come to an emergency moment, after all, according to the delisting regulations, the closing price of the stock of listed companies for 20 consecutive trading days is lower than the par value, which will trigger the delisting mechanism, and the current share price of Guanghui Automobile is 0.78 yuan, which has been below the "delisting line", although the stock price began to rebound, but Guanghui Automobile wants to regain the difficulty of 1 yuan.

Guanghui seeks change

Although it is now in the vortex of delisting, in fact, Guanghui Automobile still has a certain strength.

According to the financial report, as of the first quarter of this year, Guanghui Automobile's revenue was 27.79 billion, and in the past 2023, Guanghui Automobile's revenue is still as high as 137.998 billion.

As mentioned at the beginning, in the 2023 Fortune China 500 list, Guanghui Automobile is still ranked 103rd. As a former dealer giant and a leading enterprise with a revenue of hundreds of billions, if it were not for the stock price, Guanghui Automobile would obviously not have gone out of the market so quickly.

However, even without the impact of the stock price drop leading to delisting, the prospect of Guanghui Automobile is actually not optimistic.

Nowadays, new energy vehicles have risen, and the direct sales model that "carries forward" with new energy vehicles is also impacting the traditional car dealer model.

Judging from the financial report, although Guanghui Automobile will have a huge revenue of 137.998 billion in 2023, its net profit will only be a pitiful 392 million, with a gross profit margin of 8.29% and a net profit of only 0.46%, which can be described as "thin as paper". From the perspective of specific business analysis, in 2023, Guanghui Automobile's vehicle sales will be 117.4 billion, accounting for 85.1% of revenue, but the profit will only be 1.94 billion, and the gross profit margin will be 1.65%. However, the maintenance business and commission agency, two businesses with higher gross profit margins, accounted for only 10.02% and 3.67% of the revenue respectively.

In fact, it is not just Guanghui Automobile, and the entire auto dealer industry is really not easy to do. According to the statistics of the "2023 Top 100 Chinese Auto Dealer Group List" released by the China Automobile Dealers Association at the end of May, among the top ten dealers in China, only SAIC's sales revenue can maintain a growth rate of 22.34%, and the rest basically maintain the level of the previous year or decline significantly, while Guanghui Automobile, which ranks second on the list, has become an auto dealer with the largest revenue decline in the TOP10 list, with a sharp decline of 15.71% in revenue over the same period.

In addition, according to media statistics, the top 10 Chinese auto dealers in 2023 will achieve a cumulative revenue of about 807.084 billion yuan in 2022, a decrease of 3.12% compared with 833.035 billion yuan in 2021; According to the data of the Passenger Association, the retail sales of the domestic automobile market in 2022 will be about 20.543 million units, a year-on-year increase of 11.90%.

According to media reports, Guanghui Automobile has reached cooperation with more than 20 new energy vehicle manufacturers such as AITO, Ora, VOYAH, Xiaopeng, AVATAR, Aion, Geely Galaxy, and Extraordinary, and has applied for 52 stores and is applying for 36, of which 5 have reached a cooperative store with AITO.

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