Reviewing 2015, China's economy entered into "new normal" gradually. The changes of economic structure and growth motivity expanded the space of economic growth, and laid a solid foundation for the development of the "13th Five-Year Plan". Against the current economic environment, China's automobile industry is also tested.. In 2015, 21.1 million automobiles were sold in China's passenger automobile market sold, representing a year-on-year increase of 7.3%, but decline of 2.6% compared to the corresponding period of 2014. Faced with volatility of the industry and increasingly fierce market competition, BAIC Motor Corporation Limited (BAIC MOTOR), stock code: 1958.HK)still showed an upward trend under the pressure, achieved selling totally 1,650.1 thousand traditional and new energy automobiles under the brands of Beijing, Benjing Benz and Beijing Hyundai, which representing a year-on-year increase of 4.8%. Counting on the opportunities from "new normal" economic situation and continuous business development, BAIC MOTOR achieved splendid performance in 2015, achieved a revenue of RMB 84,111.5 million and a gross profit of RMB 15,276.8 million.
Relying on win-win cooperation, BAIC MOTOR explore businesses in multiple segments
In early 2016, BAIC MOTOR started to develop and exploit business in multiple segments. In March of this year, BAIC MOTOR officially announced the acquisition of 35% of share equity of Fujian Daimler Automotive Co., Ltd. held by Fujian Motors Group.This acquisition, for BAIC MOTOR, not only achieved one more cooperation with Daimler Group in the share equity level, but also comprehensively promoted the in-depth cooperation with FJMG which possesses great influence in the commercial automobile market in the South China. It is widely believed that through comprehensive strategic cooperation among the three parties, Mercedes-Benz will achieve all-round synergy and penetration among technology, talents and strategy in China market, realizing the occupation of China market and exploration of global market based on such alliance between giants. In addition, it is reported that starting from building the product base of Mercedes-Benz MPV commercial automobile, BAIC MOTOR will comprehensively plan the strategic moves such as introduction and layout of coming product of Fujian Benz, making it a major link of the comprehensive and global cooperation between BAIC MOTOR and Daimler Group. Through this collaboration, BAIC MOTOR will form a new pattern consisting of "passenger" and "commercial" automobiles within the Mercedes-Benz brand which is the first time in major domestic automobile groups. Against the trend that domestic commercial automobile enterprises trying to enter the passenger automobile market, this acquisition of BAIC MOTOR is definitely outstanding. This acquisition, as the start of "Cognitive Commercial Era" of China's automobile enterprises, is based on the analysis and understanding BAIC MOTOR to the domestic automobile industry, identifying high-end commercial automobiles as the next growth point of the market and developing such a strategic layout in advance.
Depending on strategic collaboration, BAIC MOTOR to develop a more competitive layout
Along with the steady development of various business, through carefully studied the industrial layout and development strategy, in 2015, BAIC MOTOR participated in a number of cooperation projects, carrying out in-depth cooperation in multiple area such as research and sales of passenger automobiles and auto parts, which further improved its participation and control of the industry chain. Such cooperation is conducted with MBtech Group GmbH & Co. KGaA (MBtech), Daimler Greater China Ltd. and Mercedes-Benz Leasing Co., Ltd.. Through participated in these collaborative projects, BAIC MOTOR continue to deepen and expand joint-invest fields and layers, attracting high-end intellectual resources around the world, promoting its core competitiveness and profitability and developing a more competitive business layout.
Looking forward, the strategies of the "One Belt One Road", "Internet +" and "Made in China 2025" will lead to a brand-new pattern to China market and the global market. To BAIC MOTOR, 2016 will be a year full of opportunities and innovations. BAIC MOTOR has achieved prominent performance in terms of self-brand and new energy automobiles. While Mercedes-Benz is approaching the No.1 luxury automobile brand at an amazing speed, the acquisition of Fujian Benz will become another inflection point of performance, together with the potential profitability of high-end commercial automobiles, the futhre result of BAIC MOTOR will be strongly improved and the investment prospects will be promising. BAIC MOTOR will take "Plan π", the five-year strategy as its development direction, steadily promoting the development of its 3 major brands, continue playing the role of joint investment and cooperation in enhancing technology and management capacities, centering on international layout, unique business model and advanced technology products, exploring and innovating so as to achieve a new high in enterprise development.
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