First quarter cash flow significantly reduced
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The unsalable vehicle sales have a direct impact on the returns of parts and components companies. The cash flow of parts and components companies is not good. According to securities industry sources.
In the first half of the year, the cumulative production and sales volume of automobiles nationwide were 2,677,100 units and 2,559,600 units respectively. Compared with the Chinese Automobile Industry Association’s forecast at the beginning of the year that this year's production and sales will exceed 5.3 million units, there is clearly a certain distance. Industry insiders lament that the entire vehicle sales experience winter, but the parts companies that depend on the whole vehicle will probably fall ill as the vehicle faces a cold. The pressure to pay more for a few months and the cash flow will mean that for small businesses, it will mean life and death, and it will also be a fatal blow to large companies.
Triangular debts between vehicle and component companies have been eased in the past two years. The current rules and regulations are that the entire vehicle company pays quarterly payments to parts and components companies. Of course, for some brand companies with better brands and larger scale, it may only last for one month. However, for small-scale parts companies, it is often more than three months before they make payments. However, in the first half of this year, vehicle manufacturers generally delayed payment for parts and components, and the current cycle is four. month. A veteran boss is quite helpless.
Cash flow is an important basis for evaluating the profitability of companies, ability to withstand risks and future development prospects, and the cash flow generated by the company's operating activities can best reflect the company's ability to continue operations and future development prospects.
The reporter randomly checked the cash flow statements of several parts and components listed companies and found that the net cash flow from the operating activities of these parts and components companies in the first quarter of 2004 was significantly lower than the three quarters of 2003, and even some corporate cash flows. Already negative. Molding Technology (000700), the company's full name is Jiangnan Mould Technology Co., Ltd., mainly engaged in automotive parts, plastic products, molds, steel doors and windows. The net cash flow generated from operating activities in the second quarter of 2003 was 95,468,900 yuan, in the third quarter was 118,484,400 yuan, in the fourth quarter was 32,216,400 yuan, and in the first quarter of 2004 it was 114,095,600 yuan; universal cash flow (000559), the company's full name is Wanxiang Qianchao Co., Ltd., mainly engaged in the manufacture, development and sales of automotive parts and related mechanical and electrical products. The net cash flow from operating activities in the second quarter of 2003 was 99.778 million yuan, which was 208.847 million yuan in the third quarter and 257.24 million yuan in the fourth quarter, and -101.8526 million yuan in the first quarter of 2004; Changchun East (600148), the company's full name is Changchun Yidong Clutch Co., Ltd., which mainly produces and sells various types of automobile clutches such as heavy, medium, passenger, light, sedan, and micro. The net cash flow from operating activities in the third quarter of 2003 was RMB 8,048,800, which was RMB 9,671,400 in the fourth quarter, and was RMB -10,015,600 in the first quarter of 2004, and RMB 108,902,200 in the second quarter; Fuyao Glass ( 600660), the company's full name is Fuyao Glass Industry Group Co., Ltd., mainly produces automotive glass, decorative glass and other industrial technology glass and glass installation. In the second quarter of 2003, the net cash flow from operating activities was 168,384,200 yuan, in the third quarter, 253,303,700 yuan, and in the fourth quarter, 334,364,600 yuan, compared with 7,508,200 yuan in the first quarter of 2004. The company's slow-moving parts and components enterprises are forced to check.
In the first quarter of 2004, the cash flow of each of the above-mentioned parts and components companies was significantly lower than in 2003. In actual interviews, the reporter discovered that the long-standing old problem that has been solved gradually is the triangular debt.
“It is normal for the whole vehicle to press our payment because the status is short and there is no way to fight with them. He drags us down and we press the second-tier suppliers. Anyway, as a Tier I supplier, I’m better than a Tier 2 supplier. "A person related to an engine plant said.
The reporter also found a second-tier supplier. They said that payment is often used in a way that the main plant pays him a sum of money. The main plant does not pay us, but it pays the customer. , and this customer is often paid us not cash, is the acceptance draft, acceptance bill may be 2 months settlement, it may be half a year settlement, if it is the end of the settlement, we had to hand the acceptance bill to the raw material supplier . The reporter feels that this kind of debt relationship is not just a triangle.
Whether it is a few angles of debt or not, due to the strengthening of state management in recent years, this contradiction has not been very prominent, and a complete win-win consensus has been reached between vehicle companies and parts and components companies. The OEMs realize that delaying and dragging down parts companies will not benefit the automaker itself. However, the cash flow of parts and components companies is very poor, and it has been a headache for veterans of parts and components companies. The reporter once asked the chairman of Liaoning Shuguang Automotive Group Co., Ltd. Li Jinyu: "Why do we want to do a complete vehicle when the parts are doing very well?" Li Jinxi said: "One of the reasons is that the vehicle cash flow is better than the spare parts. "A person in charge of FAW once said that judging from the operating history of Chinese auto companies for several decades, the problems with the operation and operation of auto companies are mostly caused by cash flow problems. This is reminiscent of the fact that after FAW reorganized Tianqi, it faced a situation in which ST Xiali’s cash flow was severely depleted, bank debts were high, and monthly sales were refunded without returning bank interest. In order to ensure the cash flow of listed companies, ST Xiali made a tough reform of the collection of upstream suppliers and the payment of downstream dealers. In the supplier section, the original payment system for suppliers in January was changed to June payment. It only extended the account period. In the first quarter of 2003, the cash flow on Xiali's shares was alive. Faced with poor sales, poor cash flow, vehicle companies can also delay the payment of parts and components companies, parts and components companies must also be downgraded? Whether or not upstream companies can afford it is indeed a big test. 
