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On the evening of March 27, Dongfeng Motor (600006) disclosed its 2013 annual report, revealing that the company achieved operating income of 19.306 billion yuan, an increase of 9.07%; net profit of the listed company’s shareholders net profit 50.1826 million yuan, an increase of 130.89%. Its non-operating income was up to 290 million yuan. Net profit after deducting non-recurring gains and losses of the listed Dongfeng Automobile Company’s shareholders was -95,537,028.79 yuan.
Dongfeng Motor in 2013 achieved sales of 272,000 buses, an increase of 3.5%; engine sales of 181,000 units, an increase of 11.7%. During the reporting period, in terms of the company"s LCV (light commercial vehicle) market, after the end of stimulating policies in 2011, the market declined in two consecutive years and in 2013, there was very limited market rebound. Meanwhile, with the restriction of energy, environmental protection, transportation and other aspects, the future macroeconomic environment will transit from stimulating consumption into the regulating consumption. The overall market will enter a micro-growth era. The company will continue to monitor market changes and actively seize market opportunities, improve the product structure and reduce internal costs and expenses, in order to enhance the level of corporate earnings.
Market participants pointed out that light trucks, SUVs and pickups are the company’s main products, with their 2013 revenues being 4.1-5.8 billion. Among them, the pickups business has the highest gross margin level, reaching 21.62%, being the company"s most important business segment. However, the scope of the implementation of the 2014 China IV emission regulations in light trucks market are expected to be further expanded, with more stringent enforcement, which will result in the cost increase in products and technology upgrades, causing risks in light truck market.
In this regard, Dongfeng Motor said in 2014 it will continue to strengthen efforts to develop the China IV products, while enhancing product cost control and actively ensuring a smooth transition of old and new products.