Since it is not a listed company, Chery Automobile's relevant performance data is always difficult to find. As a result, other channels have relevant revenue and profit information, which can easily be ignored by the industry. In fact, Chery Automobile's performance is far more ups and downs than expected.

　　On July 30 this year, the Wuhu Bureau of Statistics released data showing that in the first half of the year, Wuhu’s automobile manufacturing industry achieved an operating income of 56.84 billion yuan, a year-on-year increase of 45.2%. Among them, the operating income of Chery Automobile Co., Ltd. and Chery New Energy Automobile Co., Ltd. increased by 84.3% and 324.8% respectively.

　　In the first half of the year, the total profit of Wuhu's automobile manufacturing industry was 1.383 billion yuan, a year-on-year increase of 287.6% and an increase of 109.8 percentage points from the first quarter. Chery Automobile Co., Ltd. realized a profit of 619 million yuan in the first half of the year, an increase of 907 million yuan over the same period (a loss of 288 million yuan in the same period).

　　In recent years, Chery's sense of existence has been in a state of decline. Until Henan suffered a natural disaster in July this year, this car company was "distressed" by netizens and became a hot seller. The reason is that everyone believes that the annual net profit is only 7,371,800 yuan, and Chery Automobile has donated 35 million yuan, which is equivalent to donating its own net profit for 5 years in one fell swoop.

　　Of course, the donation of 35 million yuan is not false. The actual donor is Chery Holding Group, not Chery Automobile. However, it is also a fact that Chery Automobile's profit last year was only 737.18 million yuan. As one of the domestic "four small" automobile groups, the financial report data of Chery Automobile did surprise the industry.

　　finally saw continuous profit

　　According to previous information, Chery Automobile’s 2020 revenue was 34.762 billion yuan, a slight increase from 2019, but its net profit was only 737.18 million yuan, a sharp drop from 2019’s 392 million yuan. Chery Holdings’ 2020 revenue was 25.372 billion yuan, and its net profit was 1.168 billion yuan, an increase of 131 million yuan from 1.037 billion in 2019, but a decrease of 50 million yuan from 1.216 billion in 2018.

　　It is worth mentioning that according to the 2020 annual report released by Chery Huiyin Auto Finance Co., Ltd., a subsidiary of Chery Automobile, Chery Huiyin will achieve operating income of 2.032 billion yuan and net profit of 773 million yuan in 2020. It can be seen that if there is no profit contribution from Chery Huiyin, the net profit of Chery Automobile in 2020 will be even less.

　　What needs to be noted here is that Chery Automobile’s shares are actually Chery Automobiles. Chery Holdings covers six major sectors, including complete vehicles, parts, real estate, finance, services, and intelligence. Among them, the complete vehicle field includes Chery (Chery Auto), Jetto, Chery Jaguar Land Rover, Kaiyi, Karry, Chery New Energy, etc.

　　Then from the above two data, it can be seen that last year, Chery Automobile made a profit of 7,371,800 yuan, but lost 288 million yuan in the first half of the year. That is to say, it completed the counterattack in the second half of the year and achieved a profit of nearly 300 million yuan. According to data from the Travel Association, Chery sold 134,800 vehicles in the first half of last year and 281,500 vehicles in the second half of the year.

　　The positive profit is not only from the multiple growth of sales, but also from the launch of Tiggo 8 PLUS in October, the new car effect is highlighted. This SUV with a price range of RMB 124,900 to RMB 159,900 not only increased the sales volume of the entire Chery brand, but also improved the overall sales quality, including the increase in average bicycle price and profit.

　　At present, Chery has deployed a variety of models in the SUV field, including Tiggo 3, Tiggo 5, Tiggo 7, Tiggo 8 and other products, and is constantly committed to enriching its product matrix of various levels of SUVs in various ways. For example, the Tiggo 3 series includes Tiggo 3, Tiggo 3x Premium Edition, Tiggo 3xPLUS and many other models.

　　Although Chery Automobile's Arrizo series is not often mentioned in the market, according to data from the Passenger Federation, the Arrizo series will sell 76,700 units in 2020, ranking fourth in the middle-class car of its own brand. In the first half of this year, the Arrizo series sold 48,000 vehicles, and the annual sales are expected to surpass last year.

　　In the first half of this year, Chery Automobile sold 284,000 new vehicles, a year-on-year increase of 95%. According to the same sales and profit trends, Chery's sales this year is expected to exceed 500,000 vehicles, while profits are expected to exceed 1.3 billion yuan.

　　If this profit level is compared to leading independent brand companies, Great Wall Motor's net profit in 2020 will be 5.362 billion yuan; Geely's net profit will be 5.53 billion yuan; BYD's net profit will reach 4.234 billion yuan. In other words, even if Chery Automobile makes considerable profits this year, the gap with these car companies is still not small.

　　Despite this, since the turning point of the Chinese auto market in 2018, it has experienced negative growth for three consecutive years. However, the three years of downturn in the auto market were three years in which Chery Automobile bucked the trend and increased. Behind the “one drop and one rise”, Chery Automobile's continuous efforts in technological upgrading, marketing innovation, and channel reform played a decisive role.

　　In terms of sales volume, although Chery no longer has the glory of No. 1 in sales of its own brands for 11 consecutive years, its sales now remain in the top echelon of domestic brands. Moreover, it is an indisputable fact that Chery's sales are getting better and better compared with the sales of previous years.

　　17 years of IPO dream

　　Yin Tongyue, Chairman of Chery Automobile, said when the mixed reform was completed last year, Chery had been immersed in technological innovation in the past and had little practical experience in capital market operations. It is currently the only domestic vehicle company that has not been listed. It is reported that Chery Automobile plans to list on the A-share main board in 2022, Chery Huiyin plans to list in Hong Kong, and Chery New Energy plans to list on the Science and Technology Innovation Board or Nasdaq.

　　After Chery’s “mixed reform” in 2019, the new shareholder Zhou Jianmin, the actual controller of Beijing Wudaokou, said after he took office as the vice chairman of Chery Holdings and Chery Automobile, “It will advance the process of Chery’s listing. Chery should go public ten years ago, but missed it. Timing.” It is reported that in 2008, Chery Automobile hopes to raise 100 billion yuan through listing.

　　As early as 2004, the Anhui Provincial Government urged Chery to go public. During this period, Chery Automobile made a lot of efforts for the IPO. In 2006, it tried to hold each other's shares with Jianghuai Automobile. In 2008, it carried out a shareholding system transformation. In 2009, Chery sold 20% of its shares at a price of 2.9 billion yuan. But in the end, due to various reasons, Chery Automobile has so far failed to complete the listing.

　　The main reason is that due to the equity distribution and the test of profitability, Chery's listing plan has to be delayed again and again. Under the existing rules, IPO has a certain assessment of the profitability of the company, so Chery must further improve its profitability if it wants to go public. However, Jianghuai Automobile, also in Anhui Province, successfully went public in 2015, which also doubled the pressure on Chery.

　　The key point is that a lot of Chery's profits are invested in independent research and development, and car building is a "cash-burning" project. Therefore, only by launching the listing and financing plan as soon as possible can the tension in the capital chain be resolved. However, Chery's lack of money is extremely serious. As of the end of 2020, Chery Automobile's total debt is as high as 69.3 billion.

　　In recent years, Chery Automobile has sold some important assets in order to improve its research and development capabilities and prepare for the listing. For example, in 2016, Chery Automobile transferred 100% of its gearbox plant to Wanliyang for 2.6 billion yuan; in 2017, Chery Automobile transferred its shares in Qoros Automobile to Baoneng for 6.5 billion yuan; in 2018 , Chery Automobile transferred 51% of the equity of Kaiyi Automobile to Wuliangye for a capital of 2.7 billion.

　　In fact, all other companies under Chery Holdings are listed before Chery Automobile. Such as Wuhu Bethel Automotive Safety System Co., Ltd., Eft Intelligent Equipment Co., Ltd., and Ruihu Automotive Mould Co., Ltd. These three companies are listed on the main board, the science and technology board and the small and medium-sized board respectively, and they are all components Subsidiary.

　　Chery Holdings officially issued a document at the end of 2020, stating that there are nearly 20 "listed echelon" companies within the group, and 5 listed companies will be planned in the next 5 years. According to relevant information, in addition to Chery Automobile, Chery New Energy, Chery Huiyin Chery Tuju Campground, and Jiefeng Power are all major listing forces.

　　"After the completion of the capital increase and share expansion, Chery has put speeding up the listing work on an important agenda." As the leader of the group, Chery Automobile also has a strong objective demand for the next IPO.

　　As we all know, the A-share listing market generally requires companies to make profits for three consecutive years, combined with Chery Automobile’s profit of 392 million yuan in 2019 and 737.18 million yuan in 2020. With the announcement of Chery Automobile’s profit in the first half of this year, this is also for Chery Automobile’s listing. Provides powerful conditions.

　　Automotive is a high-input industry, especially with the advent of the electrification era, rapid technological change, related research and development requires huge amounts of funds, listing financing is an important shortcut for enterprises to become bigger and stronger. The once independent "one brother" is obvious to all in terms of technical strength, but to become a leader in the new era, there is more homework to do.