Qingqi

**MJH** · 06-23-2013, 06:21 PM

how is your Qingqi working out for you Rob.

**MJH** · 06-29-2013, 02:22 AM

Here is plug for Rob,
His website....
http://motorcycleinsight.com/

**euphonius** · 06-29-2013, 10:00 AM

Originally Posted by MJH

Jinan Qingqi Motorcycle Company LTD has posted another drop in production as of April 2013 according to the Chinese Association of Automobile Manufacturers, who records quarterly production numbers for the top 50 manufactures.

Qingqi posted another 46% loss in production for the first quarter of 2013, dropping in rank to 42 out of the top 50.

With an annual estimated production of 135,000 annually they can still be considered a very large manufacturer. However such a large downward trend is accompanied with huge losses on their balance sheet. But it seems the may have turned a corner? They look to have returned to profitability and in fact they are making much less and collecting more revenue

For example they had twice the revenue in 2008 then 2012, however they nearly doubled their gross margin from 13% to 24% . In short they are now actually earning money on production, they actually for nearly every operating year up till now had negative operating margins, with the exception of 2004 when they had posted a .04% return on sales. For 2012 they posted a 2% return on sales. Resulting in a positive net income of 64M CYN for 2012. That representing a 375% gain over their highest posted previous net income of 17M CYN in 2003.

Thanks for posting this, MJH. Question: are you seeing the same overall trend of sharply declining production across China's motorcycle manufacturers? Are there any standout exceptions? Is there any analysis as to why this is happening, and whether it's tied primarily to exports -- or whether the growing nationwide hostility toward motorcycles by major urban centers in China could be to blame?

thanks!

**ZMC888** · 06-29-2013, 01:20 PM

All this Qingqi performance or lack of, in my view, is purely down to management. Back in the day perhaps maybe seven years ago Qingqi were asking riders what they wanted from their bikes. In fact Crazy Carl, our very own admin had input on a never released QM250. Then the management changed, the project was shelved and the sales fell off a cliff. Time can only tell if they get new management with imagination and get some ideas rolling. I'd be pushing Suzuki to build and export a 500-600cc twin, but that's just me.

**MJH** · 06-29-2013, 06:06 PM

Companies do not always make profits, they have ups and downs, they always have some assets in manufacturing to work with. However from my perspective I look primarily at operating income and operting margin as a measurement of how they are doing. A negative value means they are loosing money the cost of their operations are more then the revenue from sales.

They are not all fending the same, some are holding and some falling, Jialings income from its operations was -204 CYN MIL for 2012, their operating margin -10.7%. For them the hole is getting deeper.

In answer to your question does the governments policies affect the industry, we both already know the answer to that.

Compare them to Zongshen with income from operations at 390 CYN MIL and a operating margin of 9.1%

**MJH** · 06-29-2013, 06:58 PM

Dogs of the production process

I just would like to have a Big Boy....

**ZMC888** · 06-29-2013, 07:42 PM

I, like you have a clear idea of what I want from a motorcycle and already know in exact detail the size, colors, engine sizes and bike styles that I would pursue if I were the boss of a motorcycle company. This would probably lead the company into complete success or dismal failure. This probably why these companies choose bosses who are not usually very interested in motorcycles and have probably a legal or accountancy background. Probably not bad for slow growth. China being heavily autocratic if a company did have a design/R&D boss who thought the way I do their ideas wouldn't get that far because power, money and control are jealously guarded assets in China.

**MJH** · 06-29-2013, 09:11 PM

That is not the company you could sell your vision too.

I only present to them what is low risk and pragmatic, what they could bring to the market relatively easily and cost effectively.

If Suzuki brings larger displacement models to Chinese production it be most likely through Haojue not Qingqi, but I could be totally off on that, they are very for sure and rightfully guarded.