China Harmony Auto Holding Limited · HKEX:3836
China Harmony Auto — FY2022 Earnings Presentation
25 slides from China Harmony Auto's earnings presentation, Apr 3, 2023
Slide 1: 2022 Full Year Results Presentation
2022 全年业绩演示材料 Full Year 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: Business Overview: Highlights of 2022 results
Business Overview丨Highlights of 2022 interim results Total Revenue RMB 16.7 billion (incl. commission income) in 2022 ，down by 9.1% year on year Net Profit RMB 160 million（excl. non-recurring items) in 2022 New cars sale volume 35,506 units in 2022, decreasing by 13.0% from the same period last year
Slide 5: Business Overview: Brands portfolio
Business Overview丨Brands portfolio Operating 9 luxury brands And 5 ultra-luxury brands 5
Slide 6: Business Overview: Overview of sales network
Business Overview丨Overview of sales network As of 31 Dec 2022，a total number of 77 authorized outlets across 16 provinces in 40 cities Convert 1 store and open 1 store We converted 1 store of Maserati into Bentley to improve the sales efficiency and profitability. • 1 Bentley: located in Beijing • 1
Slide 7: Business Overview: Network Expansion
Business Overview丨Network Expansion Bentley Beijing Lincoln Wuhan 7
Slide 8: Business Overview: Outlets Distribution
Business Overview丨Outlets Distribution • Cover 16 provinces and 40 cities 8
Slide 9: Business Overview: Awards of our outlets in 2022 1H
Business Overview丨Awards of our outlets in 2022 1H Best Cases of Marketing Activities of After-sales Service Dealers Best Team Management in Ferrari Greater China Beijing in 2022 KunMing Best After-sales Ambassador of Ferrari Greater China Excellent General Manager of Used Car Finance Business in Su
Slide 10: Business Overview: NEV layout, NEV Aftersales
Business Overview丨NEV layout —— NEV Aftersales Financial investment • Navigating the new business model in the world of NEV • Dangdang New Energy，an O2O platform specializing in NEV sales and aftersales services • Focus on building up an ecosystem that covers the frontend (sales) to backend demand (
Slide 11: Business Overview: New cars sales business
8 Business Overview丨New cars sales business Historical New Car Sales Unit：car 50,000 40,791 40,000 36,573 35,506 32,796 26,988 -13.0% 30,000 25,917 24,620 20,000 10,000 - 2016 2017 2018 2019 2020 2021 2022 Unit：car Luxury Brands Unit：car Ultra Luxury Brands 41,000 1,080 40,000 39,801 -13.5% 1,062 39
Slide 12: Business Overview: Key brands' volume analysis
Business Overview丨Key brands’volume analysis Retail volume in China Harmony’s sales volume 799,143 -5.6% yoy 26,756 -13.5% yoy (Incl. Mini) -7.6% yoy 182,940 -16.5% yoy 3,875 1,226 -12.6% yoy +250.0% yoy 238 4,105 +7.1% yoy +14.1% yoy 308 1,508 -6.6% yoy +7.3% yoy 88 12 Note: data source from Bloomb
Slide 13: Business Overview: Aftersales Service
8 Business Overview丨Aftersales Service: Revenue from aftersales service Repaired units Unit: RMB Million Unit: Car -16.7% 2,500 2,326 450,000 431,239 -8.7% 1,937 400,000 393,852 2,000 1,818 1,686 1,500 1,366 350,000 1,247 1,280 1,000 300,000 500 250,000 - 200,000 2016 2017 2018 2019 2020 2021 2022 2
Slide 14: Business Overview: Value-added business
8 Business Overview丨Value-added business: Revenue from value-added service Penetration of auto financing Unit: RMB Million -2.0% +1.0% pts 62.0% 60.8% 450 421 412 59.8% 400 60.0% 342 350 327 307 300 58.0% 300 250 56.0% 200 180 54.0% 150 100 52.0% 50 0 50.0% 2016 2017 2018 2019 2020 2021 2022 2021 20
Slide 15: Financial Analysis
Financial Analysis Financial performance Cost management and debt analysis Breakdown of gross profit Analysis over key indicators 15
Slide 16: Financial Analysis: Financial performance
Financial Analysis丨Financial performance Comprehensive Revenue Revenue from new cars sales (incl. commission income) and aftersales services Unit: RMB Million Unit: RMB Million 20,000 18,402 -9.1% New Car Sales Aftersales Services 16,734 20,000 15,000 15,610 -8.2% 14,325 15,000 10,000 10,000 -16.7%
Slide 17: Financial Analysis: Cost management and debt analysis
Financial Analysis丨Cost management and debt analysis SG&A Expense Ratio Financial Expense Ratio Liability-To-Asset Ratio Unit: RMB Million Unit: RMB Million +4.9% pts 44.2% 8.00% +1.2% pts 1.0% -0.2% pts 7.50% 0.9% 39.3% 0.9% 7.00% 0.8% 6.30% 0.7% 0.7% 6.00% 0.7% 6.00% 0.6% 5.00% 0.5% 0.4% 4.00% 0.3
Slide 18: Financial Analysis: Breakdown of Gross Profit
Financial Analysis丨Breakdown of Gross Profit Breakdown of Gross Profit for 2022 Breakdown of Gross Profit for 2021 Financial leasing Financial 2.6% leasing 5.6% New car sales 21.8% New car sales 37.9% Aftersales service Aftersales services 59.5% 72.7% 18
Slide 19: Financial Analysis: Analysis on key indicators
Financial Analysis丨Analysis on key indicators Overall Inventory Days Inventory Days by brands Unit: Day Unit: Day Luxury Brands Ultra Luxury Brands +11 Days +7 Days 32 41 +7 Days 25 30 31 24 2021 2022 2021 2022 Absorption Ratio Annualized ROE (excluding the impairment of the major non-recurring item
Slide 20: Development Strategies: Industry Outlook
Development Strategies丨Industry Outlook Structral Growth • The macro economy is in a period of bottoming out and recovery, and the trend brought about by consumption upgrades will further drive the demand for luxury and ultra-luxury vehicles. • Policies such as financial subsidies, reduction of purc
Slide 21: Development Strategies: Three Focuses
Development Strategies丨Three Focuses Focus on the core business Focus on the Keep key brands improving return on equity Focus on efficiency and quality growth 21
Slide 22: Focus on the core business
Development strategies丨Focus on the core business Focus on the core business, and spin off NEV business Focus on the core business To seek independent financing 22
Slide 23: Focus on the key brands
Development Strategies丨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 Rolls Royce core regions • Expand the coverage into areas with great potentials 23
Slide 24: Focus on efficiency and quality
Development Strategies丨Focus on efficiency and quality Concentrate on core business Continue to enhance operating efficiency • Ride on the trend: NEV | Used cars • One standard：Performance-centric • Broad-based planning: Scale | Users Experience • Two mindsets：Capability | Performance • Execution: M
Slide 25: Thank you!
Thank you! Hong Kong Investor Relation Office Email: hk@hexieauto.com XY, HARMONY AUTO Ane
China Harmony Auto Holding — FY2022 Earnings Presentation on 6ix