SAIC’s 2023 financial report was released： the net profit exceeded 14.1 billion, leading the national team.

　　On March 29th, Shanghai Automotive Group Co., Ltd. (600104.SH, hereinafter referred to as "()") released its annual report for 2023.

　　The financial report shows that the total operating income of SAIC in 2023 was 744.705 billion yuan, which increased steadily; The net profit attributable to shareholders of listed companies is 14.106 billion yuan; Deducted non-net profit was 10.04 billion yuan, up 11.71% year-on-year.

　　In addition, the basic earnings per share of SAIC is 1.226 yuan, and the weighted average return on equity is 4.98%. This year, SAIC continued to give back large dividends to shareholders, and it plans to distribute a cash dividend of 3.69 yuan (including tax) for every 10 shares, totaling 4.23 billion yuan (including tax). Since its listing, SAIC has accumulated more than 130 billion yuan in dividends.

　　In 2023, the China automobile market and even the global automobile market are experiencing a historic moment, with the industrial transformation surging, the price war filled with smoke, and the new forces of automobile manufacturing, traditional automobile enterprises and joint venture brands competing for each other. In the face of unprecedented industry changes and challenges, many veteran players are faced with a sharp decline in net profit and even a loss of transformation pain.

　　SAIC has resisted the pressure and defended its position with a bright report card. Among the national teams of listed car companies that have disclosed the results of fiscal year 2023, SAIC Group’s revenue, net profit, gross profit and other indicators are far ahead, among which the net profit after deducting non-recurring gains and losses has achieved double-digit growth, maintaining healthy and steady development potential, and the future profit level is expected to remain at a high level.

　　The new troika is making great efforts.

　　In 2023, in the face of multiple challenges such as the cold start of the domestic auto market, unprecedented fierce price competition and accelerated evolution of industry changes, SAIC formulated and implemented the "Three-year Action Plan for the Development of New Energy Vehicles", and the new troika of independent brands, new energy and overseas business made strong efforts, and the transformation of growth kinetic energy continued to accelerate. In 2023, the total vehicle sales of SAIC reached 5.021 million, ranking first in China for 18 consecutive years.

　　In terms of new energy vehicles and overseas sales, SAIC reached a new record high. In 2022, SAIC took the lead in "two million vehicles", and in 2023, it pursued victory. SAIC’s new energy vehicles sold 1.123 million vehicles throughout the year, up 4.6% year-on-year, ranking second among domestic car companies. The annual overseas sales reached 1.208 million vehicles, up by 18.8% year-on-year, ranking first in the domestic industry for the eighth consecutive year, helping China’s automobile exports surpass Japan and rank first in the world.

　　The performance of SAIC’s own brands is also particularly outstanding, with a total vehicle sales of 2.775 million new cars, accounting for more than 55% of the company’s sales, an increase of 2.5 percentage points over 2022. Thanks to the bumper harvest in overseas markets, the sales volume of SAIC passenger cars was 986,000, up 17.5% year-on-year; SAIC Chase’s sales also increased by 5.84% year-on-year to 226,700 vehicles.

　　In addition, the sales volume of Zhiji automobile, which mainly focuses on the mid-to high-end market, also reached 38,300 units, an increase of 665.06% year-on-year. In October last year, Zhiji LS6 helped Zhiji Automobile break through the previous sales bottleneck with the advantage of high cost performance, especially in terms of intelligent functions. For example, the first vertical GPT large model in the industry, "Zhiji Generative Large Model", was delivered online simultaneously with Zhiji LS6. In addition, all IM AD equipped with Zhiji LS6 have the ability to go to high-precision map NOA. At present, high-speed elevated NOA has covered high-speed sections in 333 cities across the country, totaling 389,000 kilometers. Not long ago, Zhiji Automobile obtained five L3 autopilot test licenses in Shanghai, taking the lead in conducting L3 autopilot road public test.

　　At the moment of great changes in the global automobile industry, the automobile going out to sea is full of opportunities but also faces great challenges. However, SAIC firmly grasps the golden window of "going out" and makes use of the first-Mover advantage of the whole industry chain to quickly enter the international market and fill the gap of foreign users’ demand for new energy vehicles.

　　It is understood that in overseas sales, SAIC’s own brand sales accounted for nearly 92%, and new energy vehicle sales accounted for nearly 24%. Among them, the global sales of MG brand exceeded 840,000 vehicles, and overseas sales continued to lead the domestic industry. The star product MG4EV, SAIC’s first global vehicle, was equipped with the exclusive serialization platform of "Xingyun" pure electricity independently developed by SAIC. Now it has landed in more than 80 countries on six continents, and successfully won more than 30 overseas authoritative awards such as "British, French, German and Australian Grand Slam of the Year".

　　It is worth noting that in fiscal year 2023, the gross profit margin of SAIC’s automobile manufacturing industry was 10.19%, up 0.58 percentage points year-on-year, of which the gross profit margin of vehicle business was 5.79%, up 1.25 percentage points year-on-year. In the past year, SAIC focused on optimizing the production and marketing structure. Last year, the sales volume of new energy passenger cars with a price of more than 150,000 yuan accounted for 43.6%, up 19.2 percentage points from 2022. Not only did the vehicle sales increase quarter by quarter, but the operating income increased steadily year-on-year. Technology research and development into a new growth point

　　In the industry’s view, in 2023, the automobile industry has entered the knockout stage in the second half, and the operation ability, product competitiveness, dynamic market adjustment and continuous iteration of technology of automobile enterprises are crucial, which will be further integrated and eliminated in the next three years.

　　Guan Mingyu, a global partner of McKinsey, once pointed out that car companies should promote the high-quality development of innovation, and the strength of software capability will be the key to determine the technical level of car companies in the future and the main battlefield for future competition. Car companies should accelerate the cultivation and improvement of software capabilities by building innovative product definition capabilities, implementing the software cooperation ecosystem, cultivating agile development capabilities, and decoupling software and hardware.

　　In 2023, SAIC accelerated its competitive advantage in the core technology field of electric intelligent networking, and built a brand-new "technological life body" with "strong heart, agile body and intelligent brain" for the future, which is the technical card for SAIC to gallop in the future.

　　In terms of "strong heart", the quasi-900V silicon carbide platform with greater torque, higher power and higher rotation speed has already landed on Zhiji LS6, which is also the first vehicle equipped with "quasi-900V dual silicon carbide high-performance platform". Its maximum working voltage is 875V, rated voltage is 751V, and it adopts high-performance dual silicon carbide power module & customized ceramic bearing, with an acceleration of 3.48s at zero speed and a top speed of 252km/h. Thanks to the battery with the maximum charging rate of 3.75c, the peak charging power of Zhiji LS6 reaches 396kW, and it can be recharged for 200 kilometers in 5 minutes. It is reported that SAIC pure electric vehicles will enter the "2-second acceleration club" this year.

　　On March 25th, Tamia Liu, co-CEO of Zhiji Automobile, issued a document saying that "Zhiji L6 will launch Wang Fried on the basis of quasi-900V super-performance platform: the first ultra-fast rechargeable solid-state battery for mass production!" It is reported that Zhiji L6 will be officially released in April, and its 100kWh semi-solid battery equipped with Qingtao Energy is the first quasi-900V ultra-fast charging solid-state battery in the industry, with energy density increased by more than 50%, battery cost decreased by more than 10%, CLTC battery life of 1000 kilometers can be achieved, and its performance is safer and more reliable.

　　Since 2018, SAIC and Qingtao Energy have started technical cooperation around solid-state batteries. At present, the first generation of solid-state batteries has been loaded. It is understood that the energy density of the solid-state batteries can reach 0.368KWh per kilogram under the premise of achieving zero out-of-control and thermal out-of-control, which is equivalent to doubling the energy density of phosphoric acid batteries and the highest battery life can reach 1083 kilometers.

　　Last year, the two sides set up a joint venture company to jointly develop a new generation of solid-state battery products. "Safety performance, energy density and even cost will be better than the traditional lithium iron phosphate battery, which can greatly improve the cruising range of electric vehicles and solve the problem of users’ anxiety about electric vehicle mileage. At the same time, if the scale is achieved, the cost of solid-state batteries can be about 10%-30% lower than that of current batteries, laying a very good foundation for our real large-scale application of industrialization. " Lu Yong, executive vice president of SAIC Innovation Research and Development Institute, said. According to him, in 2025, new models including Zhiji, Feifan, Roewe, MG and other brands will be equipped with a new generation of solid-state batteries, and it is expected that the solid-state batteries will reach the scale of more than 100,000 vehicles.

　　In terms of "agile body", SAIC pioneered the vehicle central coordinated motion control platform (VMC), which can realize three-way and six-degree-of-freedom coordinated control, thus opening a new era of digital chassis of smart cars, enabling vehicles to keep the body stable under different driving modes and complex road conditions; Innovative functions, such as steering by wire and crab walking, will take the lead in mass production on Zhiji L6.

　　"Zero Beam shoulders the heavy responsibility of SAIC’s electric intelligent transformation and is SAIC’s’ smart brain’." Li Jun, vice president of the Innovation Research and Development Institute of SAIC and CEO of Zero Beam Technology, once said that from 2024, the full-stack 3.0 smart car solution of SAIC Zero Beam Galaxy will be implemented step by step, and the full-stack electronic architecture will adopt the concept of "central computing+regional control" of intelligent human-like structure, upgrade the high-performance supercomputing platform with cabin-driving integration, and deeply integrate with IOT ecology to create a "central brain" for smart electric vehicles. The new product will halve the number of controllers, increase the data bandwidth by five times, reduce the harness length by 30% and increase the OTA speed by 70% through domain fusion technology. In addition, the vehicle will have the ability of self-learning, self-evolution and self-growth.

　　Now, with the release of the annual report in 2023, SAIC will continue to focus on the new electric intelligent track, accelerate the formation and continuous expansion of new quality productivity, lead the industrial transformation and upgrading, and strive to make greater contributions to the construction of China as an automobile power and the high-quality development of Shanghai’s economy. The "new troika" of overseas sales, new energy vehicles and self-owned brands has accelerated its gallop, mustering up the morale and leading SAIC to March to 2024. It is estimated that SAIC will strive to achieve 5.45 million vehicle sales this year, and its total operating income will exceed 790 billion yuan.