SAIC Advertising expenses approaching $1.3 billion per year
SAIC Advertising and Propaganda expenses reached RMB 4.7b in the first half of 2016
Gasgoo (Shanghai, September 19th)-Data shows that SAIC’s advertising and propaganda expenses reached RMB 4.74b in the first half of year, top of all domestic listed companies and two times of the total expenses of the runner-up five auto companies. But the proportion of above expenses in operating revenues is the lowest. In the meantime, SAIC Group is the most profitable auto company in the first half of year, with a net profit of RMB 15.06b and increasing 6.31%.
Chana Auto ranks second, with the above expense of just RMB 562m. But Chana Auto has a high operation revenue of RMB 35.8b and net profit of RMB 5.49, increasing 7.98%.
FAW car ranks third, with the number of RMB 488m. But it faces a profit loss of RMB 826m, decreasing 662.78%. BYD, Wei Chai Power and GAC Group rank fourth to sixth, which invested RMB 478m, 441m and 438m in advertising and propaganda expenses respectively. BYD faces operation revenue and net profit of RMB 44.95b, higher than FAW car. Its net profit is RMB 2.07b, increasing 384.23%. Wei Chai Power has operation revenue of RMB 42.29b and net profit of RMB 1.05b, increasing 8.5%. GAC Group’s operation revenue reaches RMB 21.43b in the first half of year, and the net profit reaches RMB 3.98b, increasing 127.49%.
Comprehensive data shows that SAIC Group’s expense is two times of the total following five auto companies. One of its senior officials told media that it has several hundred subordinate enterprises, and the total aggregate expense reached RMB 4.7b. The subordinate companies include SAIC Volkswagen, SAIC GM and other auto part companies. “SAIC Group composes of vehicle, auto part, post-market, financial services and other sub businesses. As far as I know, no other auto group has so many subordinate companies; therefore SAIC Group has a high advertising and propaganda expense.”