At present, affected by factors such as the slowdown of the global economic recovery and the escalation of international trade frictions, global automobiles are facing downward pressure and structural adjustment pressures, and China's automobile industry is facing a more severe form. According to the latest news from the Automobile Industry Association, in September 2019, the year-on-year decrease in automobile production and sales narrowed, but the downward trend continued. From January to September this year, the production and sales of automobiles were 18.144 million and 18.317 million, down 11.4% and 10.3% respectively from the same period of last year. Among them, China's independent brand passenger cars sold a total of 5.903 million, a year-on-year decrease of 18.5%.
Sales continue to decline, and it is not only the vehicle companies that are affected by the wave, but also the upstream component companies are also inevitable. According to the results of the first three quarters of international and local mainstream component companies, low profits and even Negative growth may have become the norm. It is the overall decline of the industry that has caused Joyson Electronics' third quarterly report for 2019 to be noticed recently.
The announcement shows that Joyson Electronics achieved operating revenue of 45.806 billion yuan in the first three quarters (January-September), an increase of 16.2% year-on-year. The situation is improving. However, focusing on the third quarter (July-September), whether it is a chain or a year-on-year, revenue has declined to varying degrees.
Although Joyson Electronics did not directly give the reason for the decline in the third quarter in the financial report, Mr. Guo Zhiming, Vice President of Joyson Group, revealed in a recent interview with Gasworld that Joyson Electronics ’revenue growth was due to its customers. In terms of global distribution, by region, the European and North American markets account for 60% of the company's revenue and have good growth, while the domestic business has been affected by the sluggish trend of the Chinese auto market, and its proportion has continued to narrow.
At the same time, in the third quarter of this year, GM, the largest automaker in the United States, experienced the largest strike in many years. Some analysts said that the strike may cause General Motors to lose up to $ 90 million per day. Lear, Valeo and Nemak and other companies have reported in their financial reports that the continued strike by GM has caused significant losses to upstream supply chain companies.
In this financial report, Joyson Electronics also said that its main business segment, the automotive safety system business, was affected by fluctuations in the global automotive market and GM's North American strike, and its gross profit showed a slight fluctuation. And said that with the end of the GM strike and the recovery of the global automotive market, the gross margin of the security business is expected to pick up again in the fourth quarter.
On the one hand, the continued slump of the global auto market, while on the other hand, Joyson Electronics is soaring orders in the field of automotive safety and electronics.
According to statistics, in the first three quarters of this year, it received 56 billion new orders (full life cycle) from global car manufacturers such as Volkswagen, BMW, Mercedes-Benz, Audi, and Porsche. Among them, car safety systems accounted for 62% of the order.
Financial report, Joyson Electronics third quarter financial report
As an important layout business segment of Joyson Electronics in recent years, in terms of automotive electronic systems, with the acceleration of the 5G process, the combination of cockpit electronics and car networking technology has become increasingly close. Joyson Electronics has gradually increased its R & D investment in this field. The in-vehicle information system provided by domestic and foreign vehicle companies will also enter the mass production phase in the second half of this year, including the in-vehicle information system provided for the North-South Volkswagen MQB platform and MEB platform in the domestic market (the second half of 2019), And in the European market for Volkswagen and Audi based on Google Android Auto car information system (2020).
In addition, since this year, Joyson Electronics has also started to supply next-generation cockpit electronics products (idrive systems, electronics, etc.) Gear, multimedia interactive touch screen, touch air conditioning system, etc.).
In addition to important customers BMW, Mercedes-Benz and Geely, Joyson Electronics has successively received orders from Porsche's battery management and charge-discharge systems, new energy vehicle management systems from customers such as Volkswagen, Mercedes-Benz, Nissan, Ford, SAIC-GM-Wuling, etc. Charger (OBC) products have received multiple orders from global car manufacturers such as Volvo and Ferrari.
As of the end of September, Joyson Electronics' automotive electronics system business had received new orders exceeding RMB 20 billion (full life cycle).
In terms of technology R & D investment, in the first three quarters of this year, Joyson Electronics invested a total of nearly 2 billion yuan in R & D investment in the forward-looking field, an increase of 17.49% year-on-year. Among them, based on the company's introduction of 5G technology-based V2X vehicle modules and systems last year and obtaining volume production orders from vehicle manufacturers, this year actively promoted the integration and testing of the system to further achieve high-definition positioning and support multiple mode interaction And upper security protocol standards to prepare for mass production.
In addition, regarding the company's business separation and listing, Yu Kai, secretary of the board of directors of Joyson Electronics, revealed that "for a long time to come, emerging businesses such as vehicle network, smart cockpit, new energy automotive electronics and active safety will be the company's focus Development direction. The company will also continue to pay attention to the implementation of the relevant policies of the listed company's business spin-off and listing to provide further support and assistance for the development of innovative businesses. "