Is the first A-share auto trading group to delist its 4S store model facing an end? Repair | Car | First

After 12 years of listing, the first domestic auto trading group to list on the A-share market through IPO, * ST Pangda, has reached the end of its path to listing.

According to the announcement, on June 30, * ST Pangda officially delisted from the Shanghai Stock Exchange. Relevant information shows that the huge group, established in 2003, was once the largest auto dealer group in China. At its peak, it had more than 1400 outlets and a market value of tens of billions of yuan. Its status is "pivotal" in the industry ".

The number of its distribution outlets has shrunk by more than 70%.

Looking back at recent financial reports, the number of large group stores has declined and performance has been poor.

Financial reports show that at the end of 2017, the group had 1035 operating outlets. By the end of 2022, the group had only 267 distribution stores, and the number of its distribution outlets was less than 30%.

Among them, the number of stores of the huge group declined in 2019, which can be called "halving" compared with 2018 ". At the end of 2018, the Group had 806 operating outlets, leaving only 402 by the end of 2019.

As for the reasons, the huge group has analyzed in its 2019 financial report that "due to a serious shortage of funds, property can not be realized and other reasons, unable to pay off the debts due, the serious shortage of funds caused by the continued business downturn in 2019, a large number of distribution outlets shut down, the operation can not operate normally."

In 2019, the huge group went bankrupt and reorganized. According to the restructuring plan, the restructuring investor promises a huge net profit of not less than 0.7 billion yuan, 1.1 billion yuan and 1.7 billion yuan in 2020, 2021 and 2022, respectively, or a total net profit of 3.5 billion yuan for three years. From 2020 to 2022, the large group's three-year net profit failed to meet the standard.

Judging from the results, it is also difficult for * ST to escape the suspension of stock trading.

In 2022, * ST Pangda's net profit after deducting non-recurring gains and losses attributable to shareholders of listed companies was -1.55 billion yuan, and this data in 2021 and 2020 was -0.385 billion yuan and 0.187 billion yuan respectively.

How should traditional car dealers "get out of trouble"

While the huge group was delisted, the survival of the auto dealer industry is not optimistic.

Statistics show that in 2021, more than 1900 car dealers across the country will shut down and withdraw from the network. By 2022, this number has increased to 4000.

Industry insiders told Zhongxin Finance that there are three main incomes of traditional car dealers, namely, car sales, maintenance and insurance. Among them, the profit of selling cars is not high, mainly responsible for attracting passenger flow, maintenance and insurance are the important sources of profit.

"Now we sell cars, not only not making money, but even losing money! We have to achieve the goal set by the main engine factory and get the rebate before we can even get the cost. Some of the unsalable models with quota occupy a lot of working capital." A 4S shop responsible person said helplessly.

Lang Xuehong, deputy secretary-general of the China Automobile Circulation Association, pointed out, "at present, dealers are carrying out some brand optimization, and continuing to do the original brand is not in line with the trend of future development, and it is also very difficult to choose a profitable new energy brand." so now the operating pressure is very great."

According to the ''2022 National Auto Dealer Survival Status Survey Report'' released by the China Automobile Dealers Association, in 2022, the proportion of dealers who completed the annual sales target was 19.4; only 29.7 percent of dealers achieved profitability, and they were in a loss-making state. Nearly half of the dealers; dealers' satisfaction with OEMs has dropped to the lowest level in a decade.

At the same time, two other major sources of profit-maintenance and insurance-are shrinking. A 4S shop responsible for the pick-up of the staff told reporters, "many cars out of the warranty period, customers do not come to the store to repair and on the insurance. Many Internet companies have launched a car maintenance service, although the technology may not be our professional, but the price is cheaper."

Under the above background, how should traditional car dealers get out of trouble? Lang Xuehong believes that the transformation of new energy is one of the important ways for traditional car dealers. "At this stage, dealers need to transform new energy, cultivate their own sales team, and adapt to the sales and service of new energy."

In addition, she also said that in the future, the second-hand car business is an important growth point for dealers' income and profits. Second-hand cars are a relatively quick and effective business. The advantage of many dealer groups is that they have a relatively large number of stores and a relatively good customer base. This will become an advantage in developing the second-hand car business.

Automotive marketing model is "innovation"

In recent years, although the performance of the traditional automobile dealer industry has declined, my country's automobile industry has still maintained the momentum of "advancing by leaps and bounds. According to data released by the China Association of Automobile Manufacturers, in 2022, my country's automobile production and sales achieved a slight growth throughout the year, and the total volume has ranked first in the world for 14 consecutive years.

Starting from 2021, China's new energy vehicle industry has started a "doubling" growth model. With the rapid rise of new energy vehicles, new marketing models have emerged. A number of "new car-building forces", including Tesla and Ideal, use a direct model to sell new cars. Direct stores are mostly located in the bustling business district, consumers do not have to go far to experience the new car.

In the ideal car CEO Li Xiang, the biggest advantage of the direct model is to save channel costs. "The mainstream joint-venture luxury brands correspond to the standard sales price, and the gross profit margin including the dealer fees is as high as 40% or more. However, the vicious competition among the dealers has eliminated 20% of the sales expenses. The direct 20% gross profit margin is the lowest health standard."

Compared with the traditional car sales model, although the car city exhibition hall located in the business district can only play the function of product display, and cannot provide maintenance and other services, because it is backed by the business district, the passenger flow is compared with the traditional 4S shop. Unabated. Every day an endless stream of consumers into the showroom, car sales also climbed.

After buying a car, will you choose to go to the 4S store or the exhibition hall in the business district?