Plans To Acquire All Audi Bulk Stocks, 2019 Business Year Profit Growth Of 12.8%

Local time on February 29th, Volkswagen Group released its 2019 earnings report. According to the financial report, in 2019, Volkswagen Group's annual sales revenue was 252 billion 600 million euros, an increase of 16 billion 800 million euros compared with the previous year. Excluding operating expenses of special projects, operating profit was 19 billion 300 million euros, an increase of 12.8% over the same period last year.

Volkswagen Group announced that it would further strengthen the strategic position of Audi brand in Volkswagen Group. Volkswagen Group plans to acquire 0.36% of Audi brand's free circulation shares. At present, Volkswagen Group owns about 99.64% of Audi brand subscribed capital. After the completion of the merger, Volkswagen will hold 100% of Audi.

Meanwhile, Audi's new CEO Markus Dusman will take over the relevant research and development work of the group. The Audi brand headquarters will be the core of the "Car.Software" department's organizational structure. By 2025, the share of auto software developed by ourselves will be raised to no less than 60%.

"Taking into account the subversive changes in the automotive industry, we are bringing together the advantages of the whole group to meet the future in a more competitive position." Herbert Dis, chief executive officer of Volkswagen Group and chairman of Audi supervisory board, said.

In recent years, with the development of new four modernizations, Volkswagen Group has decided to transform into a sustainable mobile travel provider. The recovery of all Audi's loose shares and restructuring of the organizational structure is one of the transformation of the public.

China contributes nearly 40% sales

In the 2019 fiscal year, the main business indicators of Volkswagen group increased compared with the previous year. The annual sales revenue reached 252 billion 600 million euros, an increase of 16 billion 800 million euros compared with the previous year, and the operating profit excluding the special item expenditure reached 19 billion 300 million euros, an increase of 12.8% compared to the same period last year. The sales return rate of excluding the special item expenditure was 7.6%, slightly higher than the target interval set in the 2019 fiscal year, and also higher than the 7.3% of the 2018 fiscal year. Among them, the net cash flow of auto business increased from -3 billion euros in 2018 to 10 billion 800 million euros.

The expenditure on special projects reduced to 2 billion 300 million euros as a result of the emissions incident. The company's operating profit increased from 13 billion 900 million euros in fiscal year 2018 to 17 billion euros.

The increase in operating indicators has benefited from a small increase in sales of Volkswagen Group. In 2019, Volkswagen group sold 10 million 970 thousand cars worldwide, an increase of 1.3% over the same period last year.

Among them, sales in the European market amounted to 4 million 552 thousand and 800, an increase of 3.9% over the same period last year. In the German domestic market, Volkswagen group sold 1 million 364 thousand vehicles, an increase of 6.2% over the same period last year. However, Volkswagen's sales in the North American market declined slightly, down 0.5% to 951 thousand and 500 vehicles.

In the Asian market, Volkswagen Group sales fell slightly by 0.4% to 4 million 530 thousand and 100 vehicles. However, its sales in the Chinese market amounted to 4 million 233 thousand and 600 vehicles, and the trend was 0.6% in the background of the overall downward trend of China's automobile market. Sales in the Chinese market account for 38% of Volkswagen's global sales. (Editor: He Fang)

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