The situation of Korean cars in the Chinese market has always been the focus of many people's concerns, and a few days ago, South Korea's Kia Company released its latest financial report, showing the plight of Yueda Kia to the world again. According to the financial report, as of the end of the third quarter, Yueda Kia's total liabilities have reached 266 trillion won, or about 143 yuan3.7 billion yuan, while its total assets are 193 trillion won, or about 104 yuan0.3 billion yuan, which means that Yueda Kia is still in an insolvent state, even if all assets are realized, there is still a difference of nearly 4 billion yuan.
Moreover, Yueda Kia's asset-liability ratio continues to rise, reaching 119 at the end of 20220%, Q1 2023** to 12705%, reaching 137 in the third quarter of 20239%。Behind the high debt ratio is the dilemma of Yueda Kia's net loss of more than 11 billion yuan in the past three years. In the first three quarters of 2023, Yueda Kia's sales were 161 trillion won (about 86 yuan.)7.8 billion), with an operating loss of 028 trillion won (about 150.9 billion), with a net loss of 033 trillion won (about 17 yuan.)7.9 billion).
In 2023, the cumulative sales of Yueda Kia will only be 83,875 units, a further decrease of 11 from 94,668 units in 20224%, such a sales level is less than the sales of some brands in a quarter or even a month. In order to reverse the decline, Yueda Kia has set its sights on overseas markets and will export 8 vehicles in 2023610,000 units, up 125% year-on-year, and a total of 50,000 sets of parts and engine assemblies were supplied to markets such as South Korea and Slovakia.
It can be seen that Yueda Kia is working hard to "live", but the reality is not optimistic. If it is not possible to reduce the debt-to-asset ratio and turn a profit at the same time, it is only a matter of time before Yueda Kia withdraws from the Chinese market. Although Kia Motors has strong growth momentum in overseas markets, the weakness in the Chinese market will undoubtedly affect its global performance, with Kia Motors' net profit falling by 20% year-on-year in the fourth quarter of 20235% for 162 trillion won (about 87 yuan.)3.2 billion), although Kia officials said that "the increase in incentives, the unfriendly exchange rate (the strengthening of the won) and the rise in labor costs all affected the quarterly results", but the performance of Yueda Kia is also a factor that cannot be ignored.
In the context of the basic collapse of fuel vehicles, Kia bets on electric vehicles, and has successively introduced two models, EV5 and EV6, of which the EV6 guide price is 2828-41.980,000 yuan, EV5 guide price 1498-17.480,000 yuan. However, sales of both models have not been good, with the EV6 selling only 99 units in the past year, while the EV5 has sold 104 and 347 units respectively in the past two months. Previously, Yueda Kia had set a target of 180,000 EV annual sales by 2030, which is difficult to achieve based on the current sales situation.
In May last year, Yueda Kia arranged for employees to take turns off, during which wages were paid normally in the first month, and wages were paid according to the local minimum wage standard from the second month, during which employees did not enjoy the company's benefits, salary adjustments, incentives and other policies. Some internal employees complained: "More than 2,000 yuan a month is to force people to leave voluntarily."
Editor-in-chief's comments. From the peak annual sales of 650,000 units in 2016 to 850,000 units, Yueda Kia's sales shrank more than 7 times in seven years, during which the major shareholder Dongfeng Motor Group also sold shares and withdrew. Although Yang Honghai, chief operating officer of Kia China, has publicly responded that "it is impossible for Kia to withdraw from the Chinese market", how many people will believe it? After all, Dongfeng Renault and GAC Mitsubishi, which were delisted before, also had similar statements. The competition in the Chinese market has reached the point where the bayonet is red, and if Kia does not come up with some "ruthless work", I am afraid that it is really not far from delisting.