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According to the Red Star Capital Bureau on August 6, a document on the spirit of Chery’s internal management committee meeting in July has been circulating online recently.

The screenshot shows that on July 12, Chery Holding Group Co., Ltd. held its July meeting. The meeting mentioned that it is necessary to persist in improving personnel efficiency, and the personnel department should implement the requirements on overtime work into specific actions to improve personnel work, and study the improvement of personnel efficiency, work quality and work ability. Improving personnel efficiency cannot be understood as simple addition and subtraction, "truly achieving 3 people doing the work of 5 people and getting the salary of 4 people."

Red Star Capital Bureau asked Chery to verify the authenticity of the above document, but the other party said "not sure". According to Cailian News, people from Chery Holdings responded that the screenshot was indeed the content of an internal publication, but this was a normal industry performance management rule to improve staff efficiency, and it was misinterpreted.

Data and pictures from Visual China

Previous topic of mandatory overtime

It also sparked heated discussions on social platforms

The document circulating on the Internet mentioned: "The recent public opinion about overtime has caused some damage to the company, and actually exposed loopholes in the company's management. If a company can't even take care of its employees, how can it take care of society?" "We must abandon the simple and crude human sea tactics and fatigue tactics of the past, treat employees like family members, and be responsible for their health and happiness." Chery requires "the human resources department to conduct a thorough review, improve the efficiency of overtime, and resolutely put an end to ineffective overtime and low-quality overtime."

In July this year, the topic of "Chery Automobile's forced overtime" also sparked heated discussions on social platforms. A netizen certified as a "Chery employee" posted that there was forced overtime within Chery Automobile, with overtime hours exceeding 20 hours per week and no overtime pay, only a 10 yuan meal allowance. In addition, employees' overtime and rest time is strictly limited, and some departments prohibit the application of rest and leave, and the last-place elimination is carried out according to the overtime hours.

An employee working at Chery Automobile's Wuhu headquarters told the media that the working hours in his department are at least 1.4 times the hours signed in the labor contract each month. Chery did not respond positively to the relevant regulations on overtime.

Chery has previously attracted attention for overtime work. In March last year, an internal email from Gao Xinhua, executive vice president of Chery Automobile Co., Ltd. and president of the Automotive Engineering Technology Research and Development Institute, responding to R&D attendance statistics was exposed.

Gao Xinhua wrote in the email: "Focus on strivers. Saturday is a normal working day for strivers. For administrative leaders, it must be a normal working day. Please find a way (to avoid legal risks); learn from Huawei's spirit, let strivers work hard, but also don't let strivers suffer! Find a solution from the mechanism."

According to Jiemian News, Gao Xinhua responded that the email was not intended for ordinary employees, but to inspire employees who are willing to work hard, encourage them to strive, and not let them suffer losses. The original intention was not to exploit employees, but he did not respond to the argument of "avoiding legal risks."

The only leading independent brand that is not listed

Zeng responded that he was actively preparing for listing

The heated discussion caused by Chery's overtime issue may be related to Chery's own sense of urgency.

Chery is the only leading domestic brand that has not yet been listed. At the end of 2023, there were reports that Chery Automobile was considering submitting an IPO application as early as 2024, with a valuation of 150 billion yuan. However, a senior executive of Chery responded that "the company is actively preparing for listing, but the rest of the information is inaccurate."

In 2023, Chery Group's annual revenue exceeded 315.1 billion yuan, a year-on-year increase of 50.6%; annual automobile sales reached 1.88 million units, a year-on-year increase of 52.6%; and exported 937,000 vehicles, ranking first in Chinese brand passenger car exports for 21 consecutive years. Although sales hit a new record high, Chery's new energy vehicle sales accounted for less than 10% in 2023.

Yin Tongyue, Chairman of Chery Holding Group, said in the fourth quarter of 2023 that Chery Automobile was "a very early riser and a latecomer" in the field of new energy. He mentioned this year that Chery will return to the top three in new energy by the middle of the year and become the second in the new energy industry by the end of the year.BYDChairman) Wang Chuanfu’s back.

According to the data from the China Passenger Car Association, Chery ranked second only to BYD (002594.SZ) in the wholesale sales ranking of manufacturers in the first half of this year, but ranked only tenth in the retail sales ranking of new energy manufacturers. In July, Chery's new energy penetration rate was 23%. The penetration rate of new energy vehicles among domestic brands has exceeded the 50% mark.

The above-mentioned meeting document mentioned that (Chery) Holdings achieved the challenge version of the target in terms of profit and operating cash flow in the first half of the year, but revenue and sales volume did not reach the target and there was a large deviation in the operation in the past two months. Therefore, we must make every effort to expand the market in the second half of the year and try every means to win the "Tashan Battle". We must work hard to improve the operation in the second half of the year and plan for higher goals next year.

In the first half of this year, Chery sold a total of 1.1006 million new vehicles, a year-on-year increase of 48.4%; among them, sales of new energy vehicles reached 180,900 units, a year-on-year increase of 181.5%; overseas exports reached 532,000 units, a year-on-year increase of 29.4%.

At the beginning of the year, Chery set its annual target for this year as "sales growth rate exceeding the industry by 10-20 percentage points". Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, predicted at the beginning of the year that China's total automobile sales growth rate would be above 3% in 2024. Based on this calculation, Chery's sales target this year is over 2 million vehicles.

It is worth mentioning that Chery has difficulty in launching hit models, and its sales of one million in the first half of the year mainly relied on the strategy of selling a large number of cars. Among the more than 30 models on sale, only a few models such as Tiggo 8 and Traveler had sales of more than 10,000 units in June.

Among the new products launched by Chery this year, more than 80% are new energy products. It has successively launched models such as Fengyun A8, Fengyun T9, iCAR 03, Jetour Shanhai T2, Xingjiyuan ET, Xingtu Yaoguang C-DM, Exploration 06 C-DM, and the new Zhijie S7, covering a variety of power options such as plug-in hybrid, pure electric, and extended-range.

Red Star News reporter Wu Danruo

Editor: Yang Cheng