Profit of BAIC Group Slumps 59% in the first half of year

BAIC released its 2017 semi-annual performance report showing that the net profit decreases nearly 60% year-on-year in the first half of year, influenced by the RMB 3.3b deficit of Beijing brands and halving sales volume for Beijing Hyundai.

It shows that BAIC Group has total revenue of RMB 66.74b increasing 36% year-on-year. The profit for shareholders decreases 59% to RMB 986m. The earnings per share reach RMB 0.13.

Its increasing revenue is mainly resulted by the increasing revenue of Beijing Benz. Revenues for Beijing Benz and related businesses in the first half of 2017 reach RMB 5.83b with year-on-year growth of 56% on a basis of RMB 3.74b. Fujian Benz also sells 10,100 units with year-on-year growth of 95.4%.

However, sales volumes of Beijing brands and Beijing Hyundai decrease greatly. It’s shown that the sales volume and sales revenue for Beijing brands decrease 45.5% and 27.8% year-on-year in the first half of year.

Besides, joint-venture brand Beijing Hyundai sells 301,000 units in the first half of year with year-on-year decline of 42.4%.