A week before BYD announced its 2017 performance, Wang Chuan Ford visited Baoding, Hebei, and visited the chairman of Great Wall Motors, Wei Jianjun. Although both companies are reluctant to disclose more information on the meeting of the two leaders of the company, it appears to the outside world that the cooperation between the two companies in new energy vehicles may be revealed. It is true that the company is currently carrying 243,500 yuan of negative points on average fuel consumption, and the company has the largest number of new energy points in the country (close to 300,000 points). Wang Chuanfu's purpose is self-evident. A week later, BYD announced its 2017 financial report as scheduled. The report shows that BYD's turnover was about 102.6 billion yuan last year, and the net profit attributable to listed companies was about 4.066 billion yuan. Although BYD last year dominated the global market with nearly 110,000 new energy car sales for three consecutive years, its profitability, which was declining from the previous year, has made it questionable. Since 2014, when the country began to vigorously support new energy vehicles, as one of the few auto companies with absolute advantages in new energy technologies, BYD's performance has begun to leapfrog. In 2014-2016, BYD’s net profit attributable to shareholders of listed companies soared from RMB 433 million to RMB 5.052 billion, with a compound growth rate of 243%. In fact, dividends that rely on vertical integration have almost reached the bottom in 2016, and Wang Chuanfu has long been aware of this. As the country’s efforts to subsidize new energy vehicles have been greatly weakened, and a large number of latecomers who are also major players in smart networking and new energy have entered, BYD is facing unprecedented challenges in its new energy vehicle business. Last year, Wang Chuanfu launched a series of reform measures under pressure in order to allow BYD to return to the path of rapid growth. From the division division to the introduction of external suppliers, to open platforms for global developers, BYD is breaking its proud vertical supply system. “The year 2018 will be the year when BYD will return to the rapid growth track, and will continue to focus on new energy vehicles and cloud tracks as an important strategic direction,†said Wang Chuanfu, chairman and president of BYD. Of course, in addition to continuing to increase investment to ensure the company's competitiveness in the new energy automotive business, BYD also has to work hard to find a market share that has been lost in the traditional fuel automobile business. Today, BYD, who has actively broken the advantages of vertical integration, seems to be at a crossroads. Wang Chuanfu, who is at the helm, is also deeply aware of the fate of companies that will no longer be eliminated if they do not change. He hopes that BYD can have the ability to realize and dominate change, and eventually evolve into a more powerful new energy company. Behind the summit In 2017, BYD sold 245,000 traditional fuel vehicles and 110,000 new energy vehicles. The total score of 355,000 vehicles is not particularly outstanding among many independent brands. It should be noted that the first camp of independent brands, including Geely, the Great Wall, and Chang'an, entered the “Million Clubs†one after another last year. However, Wang Chuanfu is pleased that BYD is currently ranked first in the global sales of new energy vehicles for three consecutive years. The financial report shows that in 2017, BYD's auto business revenue was approximately RMB 54.5 billion, of which the revenue from new energy auto business was approximately RMB 38.5 billion, an increase of approximately 13.06% year-on-year, accounting for a further increase to 37.55% of its total revenue. The new energy auto business has long been one of the few bright spots in BYD Finance. Although BYD's 2017 net profit decreased by 19.51% compared with 2016, in BYD Chairman and President Wang Chuanfu's view, this is mainly due to changes in new energy subsidy policy and market competition. Annual report data shows that in 2017, BYD’s government subsidies included in the current profit and loss amounted to 1.276 billion yuan, accounting for 23.58% of its operating profit. According to a research report released by Orient Wealth.com, although BYD's market value ranks second in the auto industry, its net profit can only be ranked seventh. Even more worrying is that in the 2017 annual report summary, BYD even expects the company's net profit in the first quarter of 2018 will continue to decline. According to its disclosure, from January to March 2018, BYD expects to achieve a net profit attributable to the shareholders of the listed company of 50 to 150 million yuan, compared with 610 million yuan in the same period of last year, a year-on-year decrease of 75.24% - 91.75%. However, even in this context, BYD expects the sales of new energy vehicles in the first quarter of this year will soar by more than 200% year-on-year, and the sales of passenger cars will increase by more than 20% year-on-year. BYD analysis, the soaring sales volume is mainly due to the hot sales of plug-in hybrid vehicles such as Qin and Song DM, and their sales have soared 539% year-on-year. A set of data that can be consulted is that although BYD's plug-in hybrid vehicles accounted for approximately 60% of the domestic plug-in hybrid passenger car market in 2017, Wang Chuanfu held the China Electric Vehicle Centennial Forum at the beginning of this year. At the same time, it said that in China's current proportion of new energy vehicles, plug-in hybrids account for only about 18%. For plug-in hybrid vehicles, Wang Chuanfu believes that in the process of the new energy of private cars, the state should give them great support. Because such new energy vehicles can not only meet the requirements of double points, but also can solve the market's expectations for driving mileage, and can resolve the negative effects of subsidies and slopes on the new energy automobile industry. In February of this year, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission announced the issuance of the Circular on Adjusting and Perfecting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles. Subsidies for new energy vehicles have been substantially reduced, and this has also become a reality. The subsidy for plug-in hybrid vehicles is 22,000 yuan, which is 8.33% lower than the 2017 standard (2.4 million yuan). The subsidy requirement for pure electric passenger cars increases the threshold. The cruising range not only mentions 150km from 100km, but also mentions that the energy density of the battery system is 105Wh/kg from 90Wh/kg. It is more and more difficult for enterprises to obtain subsidies from them. Break from the inside out In the few days after the financial statements were released, BYD successively introduced the three models of Qin EV450, Song EV400 and e5450. It is worth noting that the three new cars were all equipped with three-cell lithium batteries, and the energy density of the battery pack was raised to a maximum of 140.97 Wh/kg. This move will still provide a subsidy of nearly 100,000 yuan for these three models. Coincidentally, on the day when these three models were announced, BYD announced for the first time its news that its power battery business will be listed on its own. On March 31, Shen Yi, deputy general manager of BYD Lithium Battery Division, said at the 2018 Pearl River Delta Future Automobile Supply Chain Innovation Forum that BYD is doing a spin-off of the power battery business and is expected to split it by the end of this year or early next year. 2022-2023, BYD's power battery company will be listed independently. Recently, BYD, the biggest competitor in the battery business, is about to become the unicorn's landing capital market in the field of new energy vehicles. It is apparent that BYD has "stimulated" Wang Chuanfu deeply. The comparable set of data is that the installed capacity of BYD battery in 2017 was only 5.43Gwh, which was behind the Ningde era when it ranked first and had 10.4Gwh installed capacity. As we all know, BYD is a closed vertical integration structure, its own production of batteries for its new energy vehicles use, so the momentum of development in the past two years has been completely covered by Ningde era. Recently, the Ningde era was connected with battery orders for Volkswagen, Daimler, and several new car makers. In addition, the joint venture with SAIC Motor made it a fascinating presence in the field of power batteries. Under such circumstances, BYD would have to take the lead in opening its own power battery supply system in order to counterattack. “At present, many companies at home and abroad have expressed interest and concern for BYD's batteries. We are also actively seeking quality external partners. We are temporarily inconvenient to disclose.†The related person in charge of BYD told Times Weekly. From the fall of Motorola to Nokia, Wang Chuanfu has become more and more aware of the importance of strategy. In a recent interview with the media, Wang Chuanfu sighed: “Technology is first of all for strategic services, followed by product services. A product failure can cause tens of millions of losses to the company, but one company’s strategic mistakes and fallacies May be 5 years, 10 years, or even let a company die." The Times Weekly reporter found that the business scope described by BYD in the annual report has changed in May last year. Newly added “R&D and sales of automotive electronic devices; R&D of key components of new energy vehicles and development and sales of key parts and components of the above-mentioned parts and components; rail transportation equipment (including rail transit vehicles, construction machinery, various types of electromechanical equipment, Development, design, sales, leasing and after-sales service of electronic equipment and components, electronic and electrical parts, rail transit signal systems, communications and integrated monitoring systems and equipment (does not involve state-run trade management of goods, involve quotas, license management and other Special management commodities, apply according to the relevant regulations of the country;) R&D, design, sales of track beam; self-owned property leasing (Property is located in BYD Industrial Park, No.1 Yan'an Road, Kwai Chung Street, Dapeng New District and Longlong Street, Longgang District Industrial Park, 3001 Bohe Road, BYD Industrial Park; advertising design, production, agency and distribution; information and technical consulting, technical services." In fact, this is the beginning of internal changes in BYD. "BYD is currently divided into five business groups: passenger cars, commercial vehicles, cloud rails, electronics, and batteries, and several business divisions. We have made drastic reforms in our internal management structure, turning the big pot of rice into a small pot of rice and giving each one a The larger decision-making power and management power of the business group will better mobilize the enthusiasm of the team and respond to market changes more quickly,†said the insider. After adjusting some business units last year, it was reported that internal business units have been compressed or merged or abolished, and some business lines and factories have opened up to support the whole industry, while others have sold or closed down. But in Wang Chuanfu's view, this is only the first step in BYD's transformation. At the beginning of this year, Wang Chuanfu also proposed a strategy to open up smart development platforms for global developers. Under this strategy, BYD allows developers to implement digital control of the car's brakes, steering, and drive Hardware systems, facilitate the creation of cars on the Internet, and allow global elites to participate in car control, automotive software, The ecology of the car. “We have technical reserves, advantages of integration, and advantages in execution.†Obviously, this is Wang Chuanfu believes that this is BYD's fear of new companies such as Weilai, Weimar, and Xiaopeng. At the same time, this may be the key to BYD’s continued success in maintaining its first-mover advantage in the field of new energy vehicles. According to some media reports, BYD is currently contacting other auto makers. It not only sells its own power batteries, but also core technologies such as motors, electronic controls, and chassis are being promoted in cooperation. It is an overall packaged solution. Next profit point Analysts pointed out that Wang Chuanfu started this transformation of BYD as early as two or three years ago. In 2015, it was foreseeable that BYD would sell its flexible circuit boards, liquid crystal display screens, modules, and cameras (formerly No. 4 Business Unit) to Jiangxi Heliotai for 2.3 billion yuan. Behind this change, it can be said that Wang Chuanfu's expectations for the development of the industry; on the other hand, Wang Chuanfu is now investing in the cloud business. How to use the "cloud track" to rebuild a BYD has already become the next peak in Wang Chuanfu's career. In 2017, Wang Chuanfu added a new title entitled “Director of China Railway Engineering Design Consulting Group Co., Ltd.â€. Among the nine directors of China Railway Design's board of directors, Wang Chuanfu’s right to vote is 11%, which has a significant impact on China Railway’s design. China Railway Engineering Design Consulting Group is the main contractor of BYD Yunfeng. It is reported that the development of China's urban rail transit will usher in the peak period during the “Thirteenth Five-Year Plan†period. At present, the 13th Five-Year Plan of several provinces and cities will include the construction of rail transit into key development projects. BYD, on the other hand, targets the huge demand for second-tier and third-tier cities in China and provides them with complete solutions for pollution control and blockage. According to the report of China Merchants Securities, BYD currently has signed projects with 20 cities, and currently there are 8 tracks under construction. It is expected that the cloud business will begin to contribute profits in 2018, and it is conservatively estimated that it will realize an annual revenue of 15 billion yuan. In addition, in order to make the company's profit growth back on track. In addition to vigorously developing the cloud, its main automotive business is bound to relax. The relevant leaders of BYD Auto Sales Co., Ltd. had stated in public that the fuel tanker in 2018 hopes to reach the sales target of 400,000 units. This is not an easy task for BYD, which is currently lagging behind other independent brands in this field. Therefore, Wang Chuanfu not only hired a major designer from Audi, but also plans to use the new design and platform product development to push the fuel truck business back to growth. On March 16th, 2018, the company's board of directors approved the scope of investment for the “New Energy Vehicle R&D Project†to be adjusted by the original dual-mode auto, pure electric passenger vehicle, pure electric passenger car, electric special-purpose vehicle and related basic R&D platforms. : Passenger vehicle model platform for "Dragon" series vehicles (such as Qin, Tang, Song, Yuan, Han, Xia, etc.) and E series, named after the dynasty, C series, K series and X series divided by length and function Such electric vehicle project platforms are divided into series of electric truck project platforms such as commodity logistics vehicles, building flow vehicles, and tractors according to their functional characteristics; the same platform models of passenger cars develop multiple power configurations. "From the earlier '7+4' marketing strategy to the proposed '542' product selling point, BYD's previous thinking is relatively decentralized, and there have been only one vehicle system carrying different powertrains. The intensity of new product launches is obviously not as good as before. After competing in the Song MAX last year, other competitors, BYD has already begun to recognize the importance of the platform strategy.†Car analyst Li Ren told the Times Weekly reporter. According to public information, BYD currently owns a total of 4 factories in Shenzhen, Changsha and Xi'an, with a total capacity of 950,000 vehicles. According to BYD's current sales of new energy vehicles, there is still a huge gap in production capacity. It is reported that this year, BYD will launch Tang II, Qin II, Song MAX new energy version of the model and an A0 SUV model, this A0 model vehicle mileage can reach 400 kilometers, after the subsidy price of about 7 Ten thousand yuan. This will also be Wang Chuanfu's belief that the blue ocean of the new energy vehicle market will be located in the future. Tiger Pcb Board,Tiger Circuit Board,Tiger Pcb Circuit Board,Tiger Pcb Motherboard Guangzhou Ruihong Electronic Technology CO.,Ltd , http://www.callegame.com