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- Stable growth in new vehicle sales;
- Fast growth in after-sales services;
- Proactive layout of Automobile Rental Services;
- Rapid development of automobile finance business;
- Rapid growth of the pre-owned vehicle business;
- Builds automobile industry ecology by taking advantage of "Internet+" |
HONG KONG, Aug 28, 2015 - (ACN Newswire) - China Yongda Automobiles Services Holdings Limited ("Yongda Auto" or the "Company" and, together with its subsidiaries, the "Group", stock code: 03669.HK) (stock code: 3669), a leading passenger vehicle retailer and comprehensive service provider in China, announces its unaudited interim results for the six months ended 30 June 2015 (the "Period").
For the six months ended 30 June 2015, consolidated revenue and gross profit of the Company, taking into account the revenue from finance and insurance services, were RMB16.807 billion and RMB1.646 billion respectively, representing an increase of 12.0% and 17.1% respectively, compared to the same period in 2014. Taking into account the revenue from finance and insurance services, the consolidated gross profit margin was 9.80%, representing an increase of 0.43 percentage point (ppt) compared to the same period in 2014. During the Period, earnings before interests, taxation, depreciation and amortization (EBITDA), net profit and net profit attributable to owners of the Company were RMB897 million, RMB356 million and RMB330 million respectively, representing an increase of 15.7%, 5.3% and 6.3% respectively, as compared to the same period in 2014. Earnings per share increased RMB0.01 as compared to the same period of last year to RMB0.22.
Mr. Cheung Tak On, Chairman of the Board of Yongda Auto, said: "During the first half of 2015, the Group proactively adapted to the complicated market environment, the revenue and profit of our businesses recorded a healthy growth during the Period. The Group is actively promoting further reform and development of our independent after-sales business, automobile finance business, pre-owned vehicle business and automobile rental business, and strives to realize the integration of each individual business segment and capital as soon as possible with a view to achieving our rapid market expansion. During the development process of each business segment, the Group also attached great importance to the concept of "Internet +" and has started to design the layout of the e-commerce platform since early 2014. We consider that the cooperation with Alibaba Automobile in 2015 will push forward the development of each of our business segments. In addition, in the first half of 2015, the Group continued to promote each of our refined management work streams and achieved improvements in various areas including cost control, human resources, financial management, informatization construction and business divisions and regional management."
Business Review
During the Period, the Company continued to operate the extensive network with the Yangtze River Delta as the centre and have expanded our network to other regions in China, such as Northern China, Northeast China, Central China and Southern China. The Company have a total of 207 outlets opened and authorized to open, which are located across 3 municipalities and 55 cities in 17 provinces in China as of 30 June, 2015, of which, the Group obtained authorization to open 8 new passenger vehicles sales and services outlets focusing mainly on luxury and ultra-luxury brands, 6 newly opened new passenger vehicle sales and services outlets mainly for luxury and ultra-luxury brands. Meanwhile, the Company actively expanded the network of automobile finance leasing, rental services, pre-owned vehicle and passenger vehicle comprehensive showrooms by establishing 5 branch companies for finance leasing services, 2 branch companies for automobile rental services, 2 pre-owned vehicle comprehensive showrooms and 1 passenger vehicle comprehensive showroom.
Stable Growth in New Vehicle Sales
During the first half of 2015, the sales volume of new vehicles reached 51,374 units, representing a 11.7% increase compared to the same period in 2014, among which, the sales volume of luxury and ultra-luxury brand new vehicles reached 31,718 units in the first half of 2015, representing a 22.0% increase compared to the same period in 2014. Taking into account the revenue from the finance and insurance services, the consolidated sales revenue of new vehicles was RMB14.651 billion, representing a year-on-year increase of 10.2%, among which, the consolidated sales revenue of luxury and ultra-luxury brand new vehicles reached RMB12.059 billion, representing a 11.2% increase compared to the same period in 2014. The proportion of consolidated sales revenue from luxury and ultra-luxury brand new vehicles in the consolidated sales revenue from new vehicles further increased from 81.6% in the first half of 2014 to 82.3% in the period under review. Taking into account the revenue from the finance and insurance services, the Group's consolidated gross profit margin of new vehicles during the period was 4.48%, which was at the similar level compared to 4.74% in the first half of 2014 and a significant increase of 0.73ppt from 3.75% in the second half of 2014.
Fast Growth in After-sales Services
The revenue of after-sales services mainly came from repair and maintenance services and automobile extended products and services, which achieved RMB1.939 billion in the first half of 2015, representing an increase of 23.4% compared to the same period in 2014, among which, revenue from after-sales services for luxury and ultra-luxury brands increased 29.1% to RMB1.541 billion comparing to the same period in 2014; gross profit margin of after-sales services during the Period was 46.81%. During the Period, the Company actively improved the quality and efficiency of maintenance services, and developed the mobile terminals based on the booking platform system of after-sale services. This improved the services efficiency of each of Yongda Auto's 4S stores and effectively increased the customer booking rate. For automobile care maintenance products business, the Company established a strategic cooperation relationship with a professional chemical manufacturer from the United States, to manufacture a professional series of care and maintenance products under a customized OEM self-owned "QUICKACT" brand, which would effectively reduce costs and enhance the Company's competitiveness. Meanwhile, the five "Auto Repair" luxury automobile maintenance and repair centres opened by the Company achieved good business development during the period.
Proactive layout of Automobile Rental Services
The Company proactively conducted the layout of rental network in the provinces and cities outside Shanghai since 2014 and have achieved preliminary results during the Period. In the first half of 2015, revenue from the automobile rental services reached RMB154 million, representing an increase of 17.2% as compared to the same period in 2014, and the growth rate has increased compared to 2014. The gross profit margin of Yongda Auto's automobile rental services was 26.30%. For the 6 months ended 30 June 2015, the Company has set up rental companies or commenced operations in 10 cities including Guangzhou, Shenzhen, Chengdu, Hangzhou, Nanjing, Qingdao and Hefei, and at the same time actively prepared for establishing new leasing companies in more than ten cities across the country. In addition, the Company has been actively develop platform business market, cooperating with internationally renowned enterprises and planning to introduce the electric vehicles timeshare rental business.
Rapid Development of Automobile Finance Business
During the Period, the Company completed the reconstruction of organizational system of finance business, including organizational structure, human resources and training, which laid the foundation for rapid growth of the automobile finance business. During the Period, revenue from finance agency services was RMB99.06 million, representing an increase of 109.2% as compared to the same period of 2014. Revenue from insurance agency services in the first half of 2015 was RMB79.86 million, representing a year-on-year increase of 48.1%. In respect of the agency business, the penetration rate of the Company's automobile finance agency business increased to 31.4% in the first half of 2015 from 21.7% for the same period of 2014. With respect to the proprietary business, the finance leasing business achieved additional interest-bearing assets of RMB687 million, representing an increase of 159.4% as compared to the same period of 2014, and recorded net profit of RMB21.49 million, representing a large rise of 305.4% from the same period of 2014.
Rapid Growth of the Pre-owned Vehicle Business
Yongda Auto vigorously promoted the development of the pre-owned vehicle business, and officially launched the e-commerce platform of "Yongda Pre-owned Vehicle Mall", which drove O2O pre-owned vehicle business using big data system as a tool, and achieved effective bundling between pre-owned vehicles and finance, insurance, supplies, maintenance and repair services. Meanwhile, the Company proactively sought external internet partners, actively implementing the connection between the pre-owned vehicle business and the strong internet marketing channels, such as Bitauto, Youxin and Alibaba Automobile. During the Period, the sales volume of pre-owned vehicles for the Company's agency services was 7,046 units, representing an increase of 47.0% as compared to the same period of 2014; revenue from the pre-owned vehicles agency services amounted to RMB36.80 million, representing an increase of 45.5% as compared to the first half of 2014.
Built Yongda Automobile Industry Ecology by Taking Advantage of "Internet+"
Yongda Auto began to rapidly transform in early 2014 and started to make arrangement in the automobile e-commerce field, additionally, the strategy of "Internet+" has developed rapidly in China since 2015, the rudimentary form of "Yongda Auto Life" e-commerce platform has been revealed in the first half of 2015. Through integration of offline business and online business, the Company strived to build an automobile e-commerce ecosystem within Yongda Auto's system to meet various vehicle demands of customers on the one hand, and to proactively seek external internet partners to further improve the operating efficiency of proprietary business and growth point of new business on the other hand.
Yongda Auto and Alibaba Automobile of Alibaba Group Holding Ltd, a domestic Internet giant, carried out in-depth strategic cooperation. Both parties will integrate resources, strategically cooperate on providing comprehensive services solutions that include sales of customized vehicles, sales of parallel imported cars, repair and maintenance reservation services, offline vehicle pick-up services, pre-owned vehicle business and automobile financing services to the 80 million car owners on Alibaba Automobile's online platform, and jointly set up an industry leading auto-life O2O platform.
Future Prospect and Strategies
Looking forward, in light of the progress of domestic urbanization and strong demand for upgrading and updating vehicle ownership, China's automobile market is expected to maintain a positive and stable growth trend. Meanwhile, extended services such as automobile repair, pre-owned vehicle, automobile decoration, care and maintenance, as well as after-market businesses such as automobile finance and insurance service and automobile rental are expected to have robust development with unlimited business opportunities after experiencing the rapid growth over the past few years. Combining with Alibaba Automobile establishment of national O2O automobile sales and services network of "Car Port", Yongda Auto will continue to expand nationwide automobile sales and services network via self-establishment and mergers and acquisitions to enhance the coverage and responsiveness of our services. In the future, the network of the Company will be able to meet the demand for various industrial, positioning in relation to one-stop automobile services such as automobile sales and service, pre-owned vehicle, automobile finance and automobile rental businesses.
Yongda Auto will carry out strategic cooperation with Alibaba Automobile to organize the "Internet Automobile Fair" with global influence and to set up an automobile sales and services franchise store - "One Yongda Auto Life" - as the most influential luxury automobile sales and services franchise store in China, via Alibaba Automobile's platform. Meanwhile, as the most important strategic partner of Alibaba Automobile, Yongda Auto will strive to become the most professional automobile O2O internet service provider under the layout of a national network of "Car Port" service, which provides integrated solutions in the internet automobile sales and services industrial chain, by Alibaba Automobile. Both parties will conduct in-depth cooperation in exclusive customized vehicles, parallel imported cars, after-sales maintenance and repair reservation, automobile finance and pre-owned vehicle to construct the "Auto Life" internet ecosystem.
In the meantime, the Company will further promote and deepen online and offline automobile finance business and continue to improve financial penetration rate and agency services revenue for agency business in order to nurture and consolidate the market position and customer base for future financial restructuring. In respect of proprietary business, the Group intends to establish an internet micro-finance company, which has received a preliminary approval from the financial regulatory authorities and has proceeded to preparatory stage. Besides, the Company will continue to focus on payment, credit and wealth management and actively obtain necessary licenses. In respect of internet automobile finance services, relying on the automobile asset trading platform "Golden Touch" established by Yongda Auto, the Company aims to launch more innovative products to the market which meet the demands of customers in order to boost the automobile related spending and consumption.
Regarding to pre-owned vehicle services, the Company will continue to expand such business and actively cooperate with e-commerce platforms such as Bitauto, Youxinpai and Alibaba Automobile. Through centralized display and promotion, regionalized offline physical service network layout and construction, the Company will endeavour to build a reliable pre-owned vehicle retail platform. In addition, the Company will enter into the independent after-sales business sector and further expand the business type and scope of parallel imported parts, actively introduce OEM customized brand, and develop qualified independent automobile spare parts. Yongda Auto will continue to cooperate with leading chemical manufacturer in the United States to develop and sell self-owned automobile care and maintenance products (i.e. QUICKACT series), to rapidly expand the business size and market share, and to create the most professional self-owned automobile care and maintenance service brand in China. Meanwhile, Yongda Auto will also leverage on its scale advantage in automobile parts procurement and maintenance technology accumulated over the years and aim to become the most professional accessories e-commerce platform in China via the integration of downstream accessories retailer and upstream manufacturers, and on the above basis, the Company also aims to create an independent after-sales fast repair service chain system that could achieve rapid expansion of outlets nationwide.
Yongda Auto will continue to rapidly expand automobile rental network in more economically developed cities outside Shanghai in order to achieve synergies and business growth through business sizes and network, while conducting comprehensive cooperation in chauffeured rental business with international and domestic internet automobile rental platforms, especially new energy chauffeured rental business for the purpose of rapidly increasing market share and asset efficacy of automobile rental industry. The Company will also actively conduct trial operation of electric vehicle on timeshare basis in first-tier cities with developed markets in order to prepare for the early layout of the future consumption trends.
Mr. Cheung Tak On, Chairman of the Board of Yongda Auto, concluded: "The new era of "Internet+" will bring along new opportunities for China's automobile sales and after-sales market as well as market for new energy vehicles, where Yongda Auto is full of expectations for China's passenger vehicles market in the future. The Company will face up to the challenges as usual, proactively achieve the transformation of existing business by close alignment of "Internet+" and automobile industry, exert great efforts in improving the operational standard and profit ability of existing industry, create new business segments with greater potential for the purposes of further reinforcing our leading position within the automobile industry. Adhering to its operation concept of "Introducing Auto Life" and continue developing the Company into a leading retailer and services provider of luxury and ultra-luxury brand passenger vehicles offering premium customer experience in China. Yongda Auto will achieve a new phase of harmonious, stable and sustainable development to bring continuous and significant rewards to our investors."
About China Yongda Automobiles Services Holdings Limited (Stock Code: 3669)
Yongda Auto is a leading passenger vehicle retailer and comprehensive service provider in China, focuses on luxury and ultra-luxury automobile brands, including Bentley, Porsche, BMW, Audi, Jaguar Land Rover, Volvo, Cadillac, Lincoln, Infiniti, Lexus and Morgan. Yongda Auto's extensive 4S dealership network has a strong presence in East China (including Shanghai). The Company operates a total of 207 outlets that opened and to be opened, and is gradually expanding into other major cities in China. Besides sales business of passenger vehicle, Yongda Auto is committed to providing customers with a comprehensive range of automobile-related services through its "one-stop shop" approach, which includes after-sales products and services, automobile rental as well as a wide range of other services like pre-owned vehicles, finance insurance and leasing products, automobile finance and other related services.
Issued by PR ASIA Consultants Limited on behalf of China Yongda Automobiles Services Holdings Limited.
For enquiries, please contact:
CHOW Tsz Lung / Sharyn LAU/ Stefanie PAN
Tel: (852) 3183 0232 / 3183 0266 / 3183 0264
Fax: (852) 2583 9138
E-mail: yongda@prasia.net
Topic: Press release summary
Source: China Yongda Automobiles Services Holdings Limited
Sectors: Daily Finance, Automotive
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