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| Friday, 25 August 2017, 09:00 HKT/SGT | |
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Realized Steady Growth in New Vehicles Sales with High Appreciation Gains from FMC
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HONG KONG, Aug 25, 2017 - (ACN Newswire) - China Harmony New Energy Auto Holding Limited (China Harmony New Energy Auto or the"Group", Stock Code: 3836.HK) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the"Group") for the six months ended 30 June 2017.
RESULTS HIGHLIGHTS:
- Revenue of the Group amounted to approximately RMB5,085.2 million, representing an increase of 3.2% as compared with the same period of 2016, of which revenue from sales of new vehicles increased by 7.6% to RMB4,314.5 million.
- The Group's EBITDA amounted to approximately RMB757.3 million, representing an increase of 36.7% as compared with the same period of 2016.
- Profit for the period of the Group attributable to owners of the parent was approximately RMB564.7 million, representing an increase of 84.5% as compared with the same period of 2016.
- Basic and diluted earnings per share were RMB0.37 and RMB0.37, respectively, representing an increase of 85.0% and 85.0% as compared with the same period of 2016, respectively.
In the first half of 2017, the Group achieved fruitful results in sectors such as dealership business, comprehensive after-sales services and new energy vehicles. Revenue of the Group amounted to approximately RMB5,085.2 million, representing an increase of 3.2% as compared with the same period of 2016, of which revenue from sales of new vehicles increased by 7.6% to RMB4,314.5 million. The Group's EBITDA amounted to approximately RMB757.3 million, representing an increase of 36.7% as compared with the same period of 2016. Profit for the period of the Group attributable to owners of the parent was approximately RMB564.7 million, representing an increase of 84.5% as compared with the same period of 2016. Among which, profit contributed by 4S dealership business amounted to RMB270.9 million, after taking into account the headquarters expenses of the Group, representing an increase of 22.0% as compared with the same period of 2016, while the net gain contributed by comprehensive after-sales business and intelligent Internet electric vehicles company of FMC amounted to RMB36.2 million and RMB253.3 million, respectively.
Accelerated Expansion of Dealership Outlets and Realization of Steady Growth in New Vehicles Sales
In the first half of 2017, the Group recorded sales volume of new vehicles of 11,662 units, representing an increase of 8.9% as compared with 10,710 units of the same period of 2016. BMW, Maserati and Lexus represented an increase of 5.2%, 40.3% and 40.6% respectively over the same period in 2016. At the meantime, the Group strengthened its efforts in accelerating the expansion of dealership outlets, which included newly opened five dealership outlets in cities such as Beijing, Zhengzhou, Wuxi and Changzhou. The Group planned to further increase its efforts in applying for outlets authorization and acquisitions, complement advantages in brands and regional layout, and accelerate the expansion of dealership outlets by way of self-construction, merger and acquisition and so on in the second half of 2017. As of the date of this announcement, the Group had 52 dealership outlets in operation, covering 21 cities across China, and distributed twelve luxury and ultra-luxury brands.
Steady Development of and Reorganization for Comprehensive After-sales Business
As at the date of the announcement, the leading comprehensive after-sales business in China dedicated to the repair and maintenance services of luxury and ultra-luxury automobiles, in which the Group invested, has opened 152 independent comprehensive after-sales outlets, of which, 47 were center outlets and 104 were community stores offering fast repair services, covering 42 cities across the country, and has operated several Tesla Special Stamping Injection Service Centers, forming a service network layout with fast repair stores covering the neighbourhood of each center outlet acting as the core from offline to online. To balance the short-term interests and the long-term interests of the Company's shareholders and to improve the financial performance of the Company, on 29 June 2017, the Independent Aftersales Company announced to introduce a management team and investments from external investors. Upon completion of the transaction, Hexie Automobile Trading will hold 49.28% equity interest in the Independent Aftersales Company. The Company remained as an important investor of the Independent Aftersales Company and the Independent Aftersales Company planned to seek for A-share listing after the adjustment of the shareholding structure and the maturity of the business development. As a result of the restructuring of the Independent Aftersales Company and increase in valuation, the Group recognised investment income of RMB36.2 million in the first half of 2017 and believes that with the great efforts on the development of comprehensive after-sales business and several rounds of financing in the future, the valuation of the Independent Aftersales Company will continue to increase and the Group can continuously receive investment return from comprehensive after-sales business in a long run.
Rapid Progress of Intelligent Internet Electric Vehicles Project (FMC)
In recent years, new energy vehicles have developed rapidly around the globe and in China. The Group invested in the establishment of FMC Cayman ("FMC"), which focuses on the R&D and manufacturing of high-end intelligent electric vehicles. In the first half of 2017, the businesses of FMC have developed steadily with remarkable achievements in research and development and manufacturing. FMC is expected to introduce the first prototype vehicle at the end of 2017 and to present it at the CES conference to be held in January 2018 and to officially launch the first vehicle for mass production in 2019. FMC has conducted two rounds of financing since its inception to introduce investors, with the first round executed in December 2016 and the second round in July 2017. FMC's pre-investment valuation in the second round of financing was USD550 million with the financing scale of USD200 million and the corresponding post-investment valuation of USD750 million, which fully indicated the acknowledgement of the investors to FMC. The investment funds which invested in FMC were comprised of well-known investment management institutions and large enterprise groups. FMC has received very strong interests from lots of investors and will launch another round of financing recently. Due to the appreciation of valuation of FMC, in which the Group invested, the investment returns received by the Group in the first half of 2017 was RMB332.9 million, after deducting the sharing of FMC's losses of RMB79.6 million, the net gain was RMB253.3 million.
With the progressing and completion of FMC's product milestones, it will conduct several rounds of financing, until its listing on a stock exchange. After FMC enters into volume production in the future, Harmony Auto will provide platform supports in new car sales and after-sales services to it, and bring in new revenues to the Group at the same time. The Company believes that it will receive continuous investment returns with the progress of businesses, subsequent financing activities and future listing of FMC.
As we look to the future, Mr. Feng Changge, the Chairman and Executive Director of Harmony Auto, believes that the penetration rate of automobiles in China is still lagging behind that of developed countries and car ownership is far from saturation, hence extensive room still exists for new automobile sales. With the increase of household income growth and upgraded consumer spending, the luxury and ultraluxury automobile markets grow constantly. The Company will continue focusing on luxury and ultra-luxury brands, rapidly expanding the business scale of 4S outlets and accelerating the expansion of dealership outlets by way of self-construction and merger and acquisition; actively supporting the development of chain comprehensive after-sales business and seeking for independent listing in A shares market in the future; actively supporting the development and financing of FMC and introducing more external strategic investors in order to accelerate product launch and seeking for independent listing in the future. proactively enhancing the penetration of automobile finance, increasing commission income and commencing financial leasing business; fully utilizing internet platform, facilitating after-sales services and businesses of pre-owned automobiles and parallel imports of automobiles, realizing online and offline interaction and complementary functions with an aim to further boost its profitability and create greater value for its shareholders.
About China Harmony New Energy Auto Holding Limited
China Harmony New Energy Auto Holding Limited ("Harmony Auto" or the "Company", stock code: 3836.HK) is a leading vehicle dealership group and comprehensive after-sales service group in China that deals exclusively in luxury and ultra-luxury passenger vehicles, with proactive developments in new energy automobile business. Dealership outlets of the Group distribute luxury and ultra-luxury brands including BMW, MINI, Lexus, Jaguar, Land Rover, Volvo, ZINORO, Rolls- Royce, Aston Martin, Ferrari, Maserati and etc., making the Group a leading exclusive luxury and ultra-luxury dealership group in China in terms of number of brands covered. The Group's independent comprehensive after-sales services outlets are operated under the brands of "Harmony Auto Maintenance" and "Harmony Auto Fast Repair", offering aftersales services for mainstream luxury and ultra-luxury automobile brands, and operating one of the largest comprehensive after-sales service networks in China. The company is collaborating with global leading strategic partners to actively develop internet smart electric cars. The Company has introduced world-class entrepreneurial partnership teams, and committed to develop leading internet smart electric cars popular in China and abroad.
Topic: Press release summary
Sectors: Daily Finance, Automotive
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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