China Harmony Auto Holding Limited · HKEX:3836
China Harmony Auto — FY2020 Earnings Presentation
24 slides from China Harmony Auto's earnings presentation, Apr 1, 2021
Slide 1: 2020 Annual Results Presentation
2020 全年业绩演示材料 Annual Results Presentation 中国和谐汽车控股有限公司 China Harmony Auto Holding Ltd. 股票代码 Stock Code : 03836.HK
Slide 2: Disclaimer
DISCLAIMER This presentation material is prepared by China Harmony Auto Holdings Ltd.(the “Company”) solely for your information only. All or any part of this presentation material may not be taken away, reproduced, redistributed, or retransmitted in any manner. You agree to be bound by the above co
Slide 3: Content
Content Business Overview Financial Analysis Development Strategies 3
Slide 4: Overview: Highlights for the year
Business Overview丨Highlights for the year New cars sales volume was 36,573 units in 2020, increasing by 11.5% Revenue from new cars sales was RMB12.9 billion in 2020，a year-on-year growth of 18.2% Gross margin for new cars sales in 2020 expanded by 0.5% pts to 3.5% Total revenue was RMB15.1 billion
Slide 5: Overview: Brands portfolio
Business Overview丨Brands portfolio Operating 9 luxury brands And 4 ultra-luxury brands 5
Slide 6: Overview of sales network
Business Overview丨Overview of sales network As of 31 Dec 2020，a total number of 75 authorized outlets in operation, covering 13 provinces and 37 cities nationwide Added 10 outlets in 2020 · 5 BMW: located in Jiujiang, Nanchang, Ordo City, Sanmenxia, and Zhengzhou · 3 Bentley：located in Nanchang, Wuh
Slide 7: Outlets distribution map
Business Overview丨Outlets distribution map Shanxi(2) - Bentley Beijing(7) - BMW Inner Mongolia(4) - Maserati - BMW - Alfa Romeo Hebei(2) - Lexus - Bentley Henan (39) - BMW Jiangsu(6) - MINI - Maserati - Lexus Shanxi(2) - Ferrari - Volvo - Rolls Royce Hubei(5) - Alfa Romeo - Audi - BMW - Rolls Royce
Slide 8: Strong rebound after the COVID-19 pandemic
Business 8 Overview丨 Strong rebound after the COVID-19 pandemic New cars sales volume Revenue from new cars sales 36,573 12,893 32,796 Units: RMB Million 10,912 21,960 7,872 17,335 15,461 5,863 14,613 5,049 5,021 -5.5% +26.7% +11.5% -0.6% +34.3% +18.2% 1H2019 1H2020 2H2019 2H2020 2019 2020 1H2019 1H
Slide 9: Key brands' volume analysis
Business Overview丨 Key brands’volume analysis The Group’s major luxury brands achieved higher volume growth than the brands’ growth in China Retail volume in China Harmony’s sales volume 235,523 + 15.8% + 17.8% 4,502 777,379 (Incl. Mini) + 7.4% + 8.1% 27,774 170,883 + 9.6% + 23.3% 1,948 3,196 + 52.0
Slide 10: Aftersales service, finance lease and commission income
Business Overview丨Aftersales service, finance lease and commission income Revenue from aftersales Gross profit for aftersales 815 RMB Million 1,818 RMB Million 740 1,686 496 1,100 855 367 374 831 319 718 -13.6% +28.7% +7.9% -13.1% +32.7% +10.0% 1H2019 1H2020 2H2019 2H2020 2019 2020 1H2019 1H2020 2H2
Slide 11: NEV layout
Business Overview丨NEV layout NEV manufacturing NEV aftersales Financial Financial investment investment • Byton，a premium brand that • Navigating the new business model in the • Dangdang Cars Repair，an O2O focus on “Automation, world of NEV platform specializing in NEV Connectivity, Electrification,
Slide 12: Revitalization of Byton
Business Overview丨Revitalization of Byton Factory overview • A highly-automated factory with the standard of Manufacturing 4.0 well in place • Obtained NEV manufacturing permit • Current capacity of 150k units/year, can be scaled up to 300k units/year • Modular manufacturing platform that brings fle
Slide 13: Financial Analysis
Financial Analysis Financial Performance Income and Gross Profit Margin Cost management and Debt Analysis Comprehensive Financial Overview 13
Slide 14: Financial performance
Financial Analysis丨Financial performance Comprehensive revenue Comprehensive gross profit 15,089 RMB Million RMB Million 1,641 12,921 1,387 9,198 985 6,902 6,020 5,891 706 681 657 -2.1% +33.3% +16.8% -7.0% +44.6% +18.3% 1H2019 1H2020 2H2019 2H2020 2019 2020 1H2019 1H2020 2H2019 2H2020 2019 2020 Comp
Slide 15: Breakdown of revenue and gross profit
Financial Analysis丨Breakdown of revenue and gross profit Breakdown of comprehensive revenue in 2020 Others 2019 2020 Year-on-Year Aftersales 3% Total revenue 12,621,821 14,746,923 +16.8% services 12% From new cars sales 10,912,378 12,893,047 +18.2% From aftersales services 1,685,770 1,818,155 +7.9%
Slide 16: Cost management and debt analysis
Financial Analysis丨Cost management and debt analysis Selling expenses ratio Management expenses ratio Liability-To-Asset Ratio 1.4% 35.9% 38.9% 1.3% 5.0% 4.7% 2019 2020 2019 2020 2019 2020 16
Slide 17: Comprehensive financial overview
Financial Analysis 丨Comprehensive financial overview RMB Million 2019 2020 Year-on-Year Comprehensive income 12,921 15,089 16.8% Commission income 300 342 14.3% Comprehensive gross margin 10.7% 10.9% 1.9% Sales, admin and financial 925 1,022 10.5% expenses Adjusted profit after tax 386 506 31.3% (ex
Slide 18: Development strategies
Development strategies丨 “One Core Two Wings”：focus on the core business, and spin off NEV business Unlock the value To seek independent probably via SPAC Focus on the core business financing 18
Slide 19: 1. Focus on the core business
Development Strategies丨1. Focus on the core business Focus on the services that span from the life cycle of luxury and ultra luxury brands • New cars sales • Aftersales services • Auto finance, accessories, and insurance products • Used cars transaction 19
Slide 20: 2. Focus on the key brands
Development Strategies丨2. Focus on the key brands Keep focusing on strategically important brands Keep eyes on the network expansion Consolidate BMW, Lexus, Ferrari, Bentley, • Optimize distribution network in the core Rolls Royce regions • Expand the coverage into areas with great potentials • Annu
Slide 21: 3. Focus on efficiency and quality growth
Development Strategies丨3.Focus on efficiency and quality growth Go boldly toward digitalization • Manage every working process by the means of digitalization • Use data analytics to improve sales channels Continue to enhance efficiency in our day-to-day operation • One standard：performance-centric •
Slide 22: Development strategies summary
Development Strategies丨summary Focus on the core business Keep improving return on Focus on the Focus on efficiency key brands equity and quality growth 22
Slide 23: Q&A session
Q&A session 23
Slide 24: Thank you
XY, HARMONY AUTO Ane Thank you! Hong Kong Investor Relation Office Email: hk@hexieauto.com
China Harmony Auto Holding — FY2020 Earnings Presentation on 6ix