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| Revenue and Profit attributable to owners of the Company Increased by 26.1% and 34.8% Respectively |
HONG KONG, Sept 1, 2014 - (ACN Newswire) - China Yongda Automobiles Services Holdings Limited ("Yongda Auto" or the "Company" and, together with its subsidiaries, the "Group", stock code: 03669.HK), a leading passenger vehicle retailer and comprehensive service provider in China, today announced its interim results for the six months ended June 30, 2014 (the "period under review").
The sales volume of luxury and ultra-luxury brand passenger vehicles in China has continued its fast growth in the first half of 2014, significantly higher than the average growth of the passenger vehicle market in China. Driven by the rise in passenger vehicle ownership and the aging of passenger vehicles in China, China's after-sales services market for passenger vehicles has demonstrated great potential for growth and continued its fast-growing pace in the first half of 2014. During the period under review, the Company paid close attention to the changes in market conditions, and achieved steady growth in business. The Group's revenue and gross profit for the six months ended June 30, 2014, were RMB 14,902 million and RMB 1,305 million, respectively, representing an increase of 26.1% and 33.4% respectively, compared to the same period in 2013. Profit from operations and net profit were RMB 628 million and RMB 338 million, representing an increase of 41.8% and 26.7% respectively. Net profit attributable to owners of the Company was RMB 310 million, representing an increase of 34.8%, as compared to the same period in 2013. Earnings per share (basic and diluted) was RMB 0.21. The board of directors did not recommend the payment of any interim dividend for the six months ended June 30, 2014.
During the period under review, revenue from passenger vehicle sales was RMB 13,190 million, a 25.0% increase from RMB10,556 million of the same period in 2013. Sales revenue of luxury and ultra-luxury brand passenger vehicles reached RMB 10,760 million, representing a 29.8% increase compared to the same period in 2013. The Group's sales volume of passenger vehicles reached 45,974 units in the first half of 2014, representing a 23.4% increase compared to the same period in 2013, among which, the sales volume of luxury and ultra-luxury brand passenger vehicles reached 25,992 units, representing a 38.3% increase compared to the same period in 2013. Based on the changes of market conditions and for the purpose of improving our profitability, the management of the Group continued to strive for fully utilizing the business policy from manufacturers, optimizing management mode for our sales business and enhancing vehicle inventory management and model structure optimization, so as to achieve a balance amongst sustainable sales growth, satisfactory inventory level and reasonable profitability. The Group's gross profit margin for passenger vehicle sales has increased 0.1 percentage point to 4.0% in the first half of 2014 from 3.9% in the first half of 2013.
The Group's repair and maintenance services continued its fast growth in the first half of 2014, particularly luxury and ultra-luxury brands. This was mainly due to the fact that the Group continued to enhance the quality and customer satisfaction, strengthen the provision of comprehensive, diversified and value-added automobile extended products and automobile extended warranty; furthermore, continuous improvement of the sales process, competitive evaluation and incentive system and the introduction of suppliers and products that meet customers' needs. During the period under review, after-sales services business, which mainly includes repair and maintenance services and automobile extended products and services, achieved a revenue of RMB1,571 million, representing an increase of 38.3% compared to the same period in 2013, among which, revenue from after-sales services for luxury and ultra-luxury brands reached RMB1,194 million, representing an increase of approximately 54.2% compared to the same period in 2013. In the first half of 2014, gross profit margin for after-sales services was 46.6%, representing a slight increase compared to 46.4% of the same period in 2013.
Following the official open of Yongda Finance Leasing Company Limited in 2013, during the first half of 2014, the Group recruited management personnel with extensive expertise in banking and finance leasing and improved the organizational structure, operational flow, management system and risk control system for Yongda Finance Leasing Company Limited. Relying on nationwide sales and services network of Yongda, the Group set up 18 branch companies under Yongda Finance Leasing Company Limited in the regions other than Shanghai, so as to expand its finance leasing business nationwide. The Group relocated Yongda Finance Leasing Company Limited to the Shanghai Pilot Free Trade Zone to connect the domestic and foreign financing channels. In the first half of 2014, finance leasing business achieved additional interest-bearing assets of RMB265 million, representing a rapid increase on a monthly basis.
In the first half of 2014, the Group further increased its efforts to facilitate the development of pre-owned vehicle business, improve internal management structure and set up the dedicated pre-owned vehicle business division, through establishing an independent pre-owned vehicle centre authorized by BMW manufactures and its own Yongda brand pre-owned vehicle chain stores. The Group achieved effective integration of resources and the operation pattern of scale and brand management, improved information management system for pre-owned vehicle business, and strengthened effective regulation of business and effective integration of national businesses. Meanwhile, the Group actively implemented the connection of pre-owned vehicle business with strong marketing channels, such as BitAutocom and Tmall, to lay a solid foundation for achieving the restructuring and upgrading of business.
The Group continued to operate its extensive network with the Yangtze River Delta as the center and have expanded its network to other regions in China, such as Northern China, Northeast China, Central China and Southern China. As of June 30, 2014, the Group has opened and have been authorized to open a total of 152 outlets which are located across 48 cities in 15 provinces in China. It includes two BMW 4S dealerships, one Audi dealership, two Jaguar/Land Rover 4S dealerships, one Porsche 4S dealership, one Cadillac dealership, one Shanghai-Volkswagen 4S dealership, one Morgan 4S dealership, one BMW pre-owned vehicle center and one Cadillac city showroom.
In the second half of 2014, the Group plans to expand its sales and services network for authorizations by manufacturers by means of self-owned outlets and mergers and acquisitions. At the same time, the Group will plan the network deployment for its self-owned luxury automobile maintenance and repair centers by capitalizing on "Auto Repair", the brand created by the Group, thus providing automobile customers with comprehensive repair and maintenance services beyond the warranty period and diversifying customers base and preventing customer loss. It will leverage on its enormous customer resources to conduct marketing based on the customer data base so as to promote upgrade in repurchase and spending by customers through low-cost marketing activities, and ensure the continued development of customer value. It will extend products and services and make efforts in upgrading the extended products, such as automobile decoration products, automobile care services, automobile modification services, and in customer marketing; take advantage of the Group's entire industrial chain to promote revenue from services such as license registration, inspection, and trading vehicles so as to promote its business revenue. It will establish a new e-commerce platform through the joint venture with BitAutocom.com and Youxinpai to implement a nationwide B2C/C2B retail business mode, and to create an O2O e-commerce business pattern by coordinating with offline service experience. It will make effort to build customized automobile payment platform, achieve the integration of user payment terminals and consumption data by means of pre-paid cards, award point clearance and settlement and leverage on channels and large data to conduct precision marketing so as to provide competitive credit services and other finance services. It will explore the integration of business areas, such as new vehicle sales, after-sales services, pre-owned vehicles, automobile finance and automobile rental, and the Internet so as to achieve rapid transformation and upgrading of the traditional industries.
Topic: Press release summary
Source: China Yongda Automobiles Services Holdings Limited
Sectors: Daily Finance, Automotive, Daily News
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