Review on R & D investment of some listed automobile enterprises in 2021 From Passenger Association

The following is the Review on R & D investment of some listed automobile enterprises in 2021 From Passenger Association recommended by recordtrend.com. And this article belongs to the classification: Automobile industry.

April of each year is the time for enterprises whose shares are listed on the Shanghai, Shenzhen and Hong Kong stock exchanges to release their annual reports of the previous year. In April, 2022, 19 enterprises whose main business involves the production of passenger cars released their annual reports for 2021, of which 17 disclosed relevant data on research and development investment in 2021.

Table 1 shows the amount of R & D investment, the ratio of R & D investment to operating income (hereinafter referred to as “R & D revenue ratio”) and the ratio of capitalized R & D investment to R & D investment (hereinafter referred to as “capitalization rate”) of these 17 enterprises.

Table 1 data of R & D investment, R & D revenue ratio and capitalization rate of 17 Listed passenger car manufacturers in 2021

The total R & D investment of 17 enterprises in 2021 is 74.501 billion yuan, and the R & D revenue ratio is 4.14%. This is 1.7% higher than the 2.44% of GDP of domestic R & D expenditure of the whole society in that year, which shows that the R & D investment intensity of domestic passenger car manufacturers is not low on the whole.

There are two accounting methods for the R & D expenditure of the current year. One is that the expenditures in the research stage and the development stage are all included in the current profit and loss according to the principle of prudence. The other is that the expenditure in the research stage is included in the current profit and loss when it occurs; If the expenditure in the development stage meets certain conditions, it shall be recognized as intangible assets when it occurs, and shall be included in the profits and losses of each period when it is used according to the principle of matching expenditure with income. The proportion of the intangible assets recognized in the total expenditure is the “capitalization rate”. In the two methods, the enterprise can choose which method to adopt; However, once selected, it cannot be easily changed. Therefore, enterprises with zero capitalization rate of R & D investment do not necessarily have no projects in the development stage. Generally speaking, the high capitalization rate can be seen as that there are more R & D investment for the development of specific models.

For the R & D investment of 17 enterprises in 2021, in addition to the figures in the table, the following enterprises deserve attention.

1. in the consolidated statement of SAIC Group, the R & D investment in 2021 was 20.595 billion yuan, accounting for 27.6% of the total number of 17 enterprises. Its R & D revenue ratio is only 2.64%, which is because the operating revenue of 779.846 billion yuan in the consolidated statements is included in the product sales revenue of joint ventures within the group, while the development of products introduced by joint ventures is basically implemented in foreign enterprises, and this part of the development costs will not be reflected in the accounting statements of Chinese enterprises.

2. Great Wall Motors’ R & D investment is RMB 9.067 billion, and the R & D revenue ratio is 6.65%. The capitalization rate is 63.95%. Great Wall Motors officially announced that it would launch a series of new products, which is also reflected in the R & D expenditure of the enterprise.

3. the capitalization rate of R & D expenses of GAC group reached 83.99%, which indirectly reflects that GAC group is developing a large number of new products.

4. BAIC bluevale is a listed company specialized in new energy vehicles of BAIC group, with sales of 26127 new energy vehicles in 2021. The R & D investment is 1.836 billion yuan, and the capitalization rate is the highest among all enterprises, reaching 85.43%. It shows that BAIC bluevale is making every effort to develop new models and strive to regain a place in the new energy vehicle market.

5. Haima automobile has two production bases in Haikou and Zhengzhou. FAW Haima automobile was renamed Hainan Haima automobile after it separated from FAW Group in August 2021. Haima automobile sold 29513 vehicles in 2021, and has not yet got out of the market dilemma. Although the capitalization rate of R & D expenditure is 38.88%, the total R & D expenditure is only 150million yuan, which is not enough to support the development of new models.

6. Lifan industry (Group) has been renamed as Lifan Technology (Group), and the owned Lifan automobile has also been managed by Geely Group to produce Geely’s new energy vehicles. The technology of the product is provided by Geely Group. It is natural that Lifan technology has little R & D expenditure.

7. Zhongtai automobile is still in the stage of bankruptcy and reorganization, and there is no definite information so far. Zhongtai automobile has stopped production. The R & D expenditure of 21million yuan is only enough to meet the depreciation of R & D facilities and the wages of a small number of R & D personnel. It is impossible to carry out product development.

Among the 17 listed companies, there are both state-owned enterprise groups, state-owned holding enterprises and private enterprises; There are both enterprises with good market performance and enterprises with difficulties in the market; There are both enterprises in normal operation and enterprises on the verge of bankruptcy; These enterprises are representative in the automobile industry. Therefore, through the data of these 17 Enterprises’ R & D investment, we can generally understand the status of China’s automobile enterprises’ R & D investment.

More reading: China Automobile Circulation Association: in March 2020, the domestic narrow passenger car market sales reached 1045000 units, a year-on-year decrease of 40.4%. China Automobile Circulation Association: China automobile preservation rate report in April 2022 China Automobile Industry Association: a brief introduction to the operation of the automobile industry in May 2021 China Automobile Industry Association: the top ten car brand sales in March 2022 China Automobile Circulation Association: China imported automobile market monthly report in April 2020 China Automobile Circulation Association: in the first quarter of 2020, 57 luxury brand authorized 4S stores were added and 41 were withdrawn from the network. In January 2020, the capital auto market was analyzed. Ministry of Commerce: China exported 373000 vehicles from January to may 2020. China Automobile Association: from May 16 to May 22, 2022, the car market was scanned. China Automobile Industry Association: a brief analysis of the sales of the top ten SUV manufacturers from January to April 2022. China Automobile Industry Association: it is expected that 1.32 million passenger vehicles will be retailed in a narrow sense in May 2022 Cinno research: the wholesale sales of 5.44 million passenger cars in the Chinese market in Q1, 2022 increased by 8.6% year on year. Xiaopeng automobile financial report: the net loss of Xiaopeng automobile in Q1, 2022 was 1.7 billion yuan, an increase of nearly 1billion yuan year on year. China Association of automobile manufacturers: the year-on-year decline of automobile retail sales in April, 2022 was more than 30%

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