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.




Financial information from Morning Star.
http://financials.morningstar.com/ra...&culture=en-us


They are not even exporting more they exported 57% less for the first quarter of 2013 over 2012.
Estimated export of about 40,000 units annually. Roughly one third of production is exported.


Suzuki is also still reducing its production dropping 28% and they do not export any of the production they make through their partnership with Qingqi, if they do not in any significant enough of an amount to register them in the top 50 exporters. I imagine all they do in china is make transportation models for rural sales.


Now that Qingi has weathered the storm and are now capitalized they may become more adventurous?
Nobody is rating their stock as a buy, they are recommending a hold on them.


They actually need some new offerings for their networks and also some new networks.


I wonder if they have anything in development?