The recent "stall economy" fire, on June 3, the Hong Kong stock Wuling Motor rose more than 120% in intraday trading, closed up 53.27%, and rose 63% the next day. Because of a magical car on the ground stall painting screen of the Xiangu Wuling car, has never been as beautiful as now.

During the epidemic, the production of masks and stalls built god cars economically, but this Wuling is not that Wuling investors can't tell.

Just like the phrase printed on the mask box produced by Wuling during the epidemic, "Wuling will build whatever the people need." Wuling, which first produced masks and then made miraculous cars, has become the backbone of the nation. But what investors can't tell is that this "Wuling" is not the other "Wuling", and the stall miraculous car and Wuling Hongguang are not a manufacturer.

Wuling Motors, a listed company in Hong Kong, is a recent manufacturer of "ground stalls miraculous cars". The full name of the company is: Wuling Automobile Group holding Co., Ltd., is one of the top 100 global auto parts suppliers. The company's main business is engaged in auto parts, engines and special purpose vehicle sales and manufacturing business.

Another company, SAIC General Motors Wuling, is the manufacturer of protective masks recently, and it is also the manufacturer of Wuling Hongguang, another miraculous car that sells badly and competes against Qiu Mingshan, but Wuling Hongguang is not a recently hyped magical car.

The half-brother, SAIC, was mistakenly loved.

According to the financial report, Guangxi Automobile Group, a large state-owned automobile company, is the controlling shareholder of Wuling Motor, with a shareholding ratio of 60.6%. All of its vehicle business has realized tripartite cooperation with SAIC and GM to establish SAIC GM Wuling Automobile Co., Ltd. (referred to as SAIC GM Wuling). The remaining spare parts, engines and special purpose vehicle businesses jointly established Wuling Motors in 2007 with Hong Kong Junshan Group.

Like half-brothers, Wuling Motor and SAIC GM Wuling both have the same shareholder, Guangxi Automobile Group, and are also relatives. When Wuling Motor exploded on June 3, a group of investors who did not know the truth did not have time to find out what the truth was. They pulled SAIC Group, a large-cap stock of more than 200 billion yuan, by nearly 4%. Although SAIC is the majority shareholder of SAIC GM Wuling, the affair between SAIC Wuling and SAIC GM Wuling is a pure "own dragon".

On June 4, SAIC fell 3.75%, giving back the previous day's increase. Reality once again teaches investors that the subject matter is risky and do not follow the trend of stock speculation.

Revenue has fallen for three years in a row, and profits lost for the first time last year

In terms of financial performance, Wuling Motors is having a hard time, with operating income declining for three consecutive years and net profit losing for the first time in 2019. Poor fundamentals leave its market capitalization at only HK $1.415 billion, including the recent 2-day surge, which unfortunately reduced Wuling to "fairy shares" as its total equity reached 3.075 billion.

Another thing that people don't understand is the overseas market layout of Wuling Motors. In 2016, Wuling Motor set up a factory in Indonesia and established its first overseas production base. With high performance-to-price ratio, it has been one of the top 10 local car dealers in 19 years, with a market share of about 2%. Other car companies in the top 10 are all Japanese. However, from the perspective of financial performance, the effect of this overseas layout is not satisfactory.

"Wuling Automobile" relies heavily on SAIC GM Wuling, and the dependence on engine business is maintained at more than 50% all the year round.

Since its establishment, SAIC GM Wuling has been the largest customer and supplier of Wuling Motor, accounting for 60.1% of total sales and 34.4% of total purchases in 2018.

In terms of engine business, Wuling provides a variety of small car engines to SAIC GM Wuling. However, in 2012, as SAIC GM Wuling gradually increased the use of self-produced engines in its business, Wuling sales began to decline.

The business picked up slightly in 2015 with the group's proprietary NP18 engine for passenger cars used in SAIC GM Wuling's Baojun-related models.

But with sales of related models falling significantly, the business sold only 130000 units in 2018, down about 81 per cent from its peak. By 2018, the share of sales between Wuling and SAIC-GM Wuling had fallen to 56.2%.

According to Wuling's 2019 annual report, SAIC GM Wuling ranks first and far leads the second place in both accounts receivable and accounts payable.

Although it was reported on June 3 that the car sold for 56800 yuan, which is very close to the people and popular, it has not been found online on the company's website. It is expected that before long, we will be able to witness first-hand the scene of people who respond positively to the call driving a magic car to set up stalls to get rich.