Cailian News on January 29th (Reporter Wu Xin)The automobile industry is full of smoke, and Neusoft Group (600718. SH) carrying automobile genes turned losses into profits in 2023.
This evening, Neusoft Group released a performance forecast, predicting a net profit of 72 million to 86 million yuan in 2023 (a loss of 343 million yuan in 2022).
"The overall business of the company is growing healthily." The director of the company told reporters that there will be more strategic adjustments in 2024, and there will be corresponding actions in areas where new products are released, the state encourages and the company has advantages.
According to the announcement, Neusoft Group’s operating income in 2023 continued to grow steadily year-on-year, and its gross profit margin increased compared with the previous year. During the reporting period, the overall performance of Neusoft Medical, Neusoft Xikang, Wanghai Kangxin, Neusoft Ruichi, Rongsheng Insurance and other innovative business companies constructed by the company in the sectors of "Big Health" and "Big Automobile" decreased, but the net profit of listed companies and the net profit after deducting non-recurring gains and losses were still negatively affected.
The performance forecast shows that in 2023, the company deducted non-net profit from-140 million yuan to-115 million yuan.
Cailian reporter learned from Neusoft Group’s semi-annual report in 2023 that its smart car interconnection business achieved revenue of 1.606 billion yuan in 2023 H1, exceeding 40% of the total revenue. In this field, Neusoft Group provides a series of solutions from automotive electronics, automotive software, intelligent driving to intelligent transportation.
At present, "involution" is the main tone of the domestic automobile industry, with price-for-quantity as the main way of playing, which greatly reduces the profit space of automobile enterprises and affects the upstream and downstream of the industrial chain. According to the data of China Association of Automobile Manufacturers, from January to November 2023, the profit of automobile manufacturing industry was 448.98 billion yuan, a year-on-year increase of only 2.9%.
The above-mentioned company source said, "The related business is still relatively healthy, but the competition among car companies is fierce, and there may be some (impact), and other companies will definitely have some losses in gross profit margin."
"There are many new models now, but the market is biased towards saturation, which leads to the compression of the upstream and downstream profits of the entire industrial chain. There are still some influences, and we can’t escape from this area."
Looking forward to the market outlook, with the automobile industry going through the painful period and forming a new pattern, the upstream and downstream of the automobile industry chain are expected to enter a stable period simultaneously. A person from Neusoft Group said that the big waves will leave behind high-quality enterprises. At present, new car companies have been eliminated, and Neusoft Group will also achieve "stable profits".