Trans-china Automotive Holdings Ltd. · SGX:VI2
Trans-china Automotive — 1H2024 Earnings Presentation
22 slides from Trans-china Automotive's earnings presentation, Aug 12, 2024
Slide 1: Gearing Up for Greater Growth: 1H2024 Results Presentation
GEARING UP FOR GREATER GROWTH 1 H 2 0 2 4 R E S U LT S P R E S E N T AT I O N 12 August 2023
Slide 2: Disclaimer
Disclaimer This presentation is prepared for information purposes only, without regard to the objectives, financial situation nor needs of any specific person. This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any offer to buy or sub
Slide 3: Key Financial Highlights
AUTOMOTIVE Key Financial Highlights
Slide 4: China Passenger Vehicle Market Summary
China Passenger Vehicle Market Summary New and Pre-owned Automotive Sales Volume, PRC 36.5 31.9 33.3 33.4 12.9 14.8 Million 12.6 13.2 Units 18.3 19.2 8.8 9.4 19.3 20.1 20.5 21.7 9.5 9.8 2020 2021 2022 2023 1H2023 1H2024* New Pre-Owned New and Pre-owned Automotive Sales Value, PRC 5.2 5.4 4.9 4.3 1.1
Slide 5: China Passenger Vehicle Market Summary: NEV and ICE
China Passenger Vehicle Market Summary NEV and ICE Automotive Sales Volume, PRC 5.7% 94.3% 14.9% 85.1% 27.7% 72.3% 35.5% 64.5% 32.5% 67.5% 41.8% 58.2% 18.2 17.1 14.8 14.0 Million Units 7.7 6.4 5.7 5.7 3.0 3.1 4.1 1.1 2020 2021 2022 2023 1H2023 1H2024* NEV ICE Growth Rates of NEV in different Price R
Slide 6: Key Highlights - Revenue
Key Highlights - Revenue Revenue Breakdown By Segment 0% 0% 15% 19% 5,000 4,500 1H2023 1H2024 4,000 3,500 3,000 RMB’ Million 2,500 85% 81% 4,214 4,516 2,000 4,027 1,500 3,456 1,000 1,685 1,355 500 Segment (RMB’ Million) 1H2023 1H2024 YoY 0 2020 2021 2022 2023 1H2023 1H2024 Sale of Automobiles 1,432.
Slide 7: Key Highlights - Profits
Key Highlights - Profits Gross Profit | Gross Profit Margin Gross Profit/Margin By Segment 500 50.0% 7.6% 8.2% 4.9% 1.8% 3.9% -1.8% 400 GP (RMB‘ Million) GP Margin (%) 0.0% 300 372 Segment 1H2023 1H2024 1H2023 1H2024 316 RMB’ Million -50.0% 200 Sale of Automobiles (24.5) (123.9) (1.7) (11.3) 100 197
Slide 8: Key Income Statement Highlights
Key Income Statement Highlights RMB’ Million 1H2023 1H2024 YoY% Revenue 1,685.2 1,355.0 (19.6) Cost of Sales (1,619.0) (1,379.9) (14.8) Gross Profit (Loss) 66.2 (24.9) (137.6) Other Income 83.3 93.4 12.1 Other Gains, Net 1.2 1.5 25.0 Selling Expenses (77.8) (69.9) (10.2) Administrative Expenses (61.
Slide 9: Revenue and Gross Profit
Revenue and Gross Profit +/(-) 1H2023 1H2024 Variance RMB’ Million RMB’ Million % Revenue Sale of automobiles 1,432.8 1,092.2 (23.8%) Provision of after-sales services 249.5 261.2 4.7% Agent commission 2.9 1.6 (44.8%) 1,685.2 1,355.0 (19.6%) Gross Profit Sale of automobiles (24.5) (123.9) 405.7% Pro
Slide 10: Other Income
Other Income +/(-) 1H2023 1H2024 Variance RMB’000 RMB’000 % Handling and commission fee income 70,231 82,486 17.4% Insurance rebate 2,342 1,096 (53.2%) Deposits forfeited by customers 1,269 669 (47.3%) Government grants 86 308 258.1% Pre-owned cars and fleet sale commissions 4,984 2,891 (42.0%) Othe
Slide 11: Selling expenses
Selling expenses +/(-) 1H2023 1H2024 Variance RMB’000 RMB’000 % Advertising expenses 7,935 9,173 15.6% Employee benefit expenses 37,257 33,877 (9.1%) Other tax expenses 7,397 1,227 (83.4%) Others 494 242 (51.0%) Depreciation 24,671 25,425 3.1% 77,754 69,944 (10.0%) 10
Slide 12: Administrative expenses
Administrative expenses +/(-) 1H2023 1H2024 Variance RMB’000 RMB’000 % Auditor’s remuneration 1,351 1,213 (10.2%) Bank charges 1,205 1,071 (11.1%) Employee benefit expenses 20,748 19,255 (7.2%) Entertainment 383 353 (7.8%) Fuel and maintenance expenses 3,172 3,135 (1.2%) IT and security fees 4,255 2
Slide 13: Finance costs, net
Finance costs, net +/(-) 1H2023 1H2024 Variance RMB’000 RMB’000 % Finance income -Bank interest income 1,538 481 (68.7%) 1,538 481 (68.7%) Finance costs -Interest expense on bank and other (11,242) (8,621) (23.3%) borrowings -Interest expense on lease liability (8,666) (7,763) (10.4%) -Interest expe
Slide 14: Key Balance Sheet Highlights
Key Balance Sheet Highlights RMB’ Million As at 31 December 2023 As at 30 June 2024 Non-current Assets 602.1 578.0 Current Assets 989.7 719.9 Total Assets 1,591.8 1,297.9 Non-current Liabilities 326.9 312.9 Current Liabilities 1,066.6 863.8 Total Liabilities 1,393.5 1,176.7 EQUITY (NAV) 198.3 121.1
Slide 15: Key Cash flows Highlights
Key Cash flows Highlights RMB’ Million 1H2023 1H2024 YoY% Operating cf before wc changes 46.5 (11.1) (123.9) Net cash generated from (used in) operating 45.3 (19.1) (142.2) activities Net cash used in investing activities (26.1) (13.7) (47.5) Net cash (used in) generated from financing (4.3) 41.8 n.
Slide 16: Key Operational/Financial Ratios
Key Operational/Financial Ratios Profitability Ratios 1H2023 1H2024 Gross Profit Margin 3.9% -1.8% Net Profit Margin -0.9% -5.5% EBITDA Margin 3.0% -1.3% Inventory Turnover Days 49.1 days 38.9 days Group Absorption Ratio* 86.9% 112.0% Balance Sheet Ratios 31 December 2023 30 June 2024 Net Working Ca
Slide 17: Corporate Developments
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Slide 18: Operating environment Update
Operating environment Update Challenges in 1H2024 Responses • Economic growth was below expectation – China’s GDP • Continue to work closely with OEM partners on grew 4.7% (YoY) in 2Q2024, only 3.9% in the Guangdong meeting the market challenges province where TCA has the bulk of its operations1 • O
Slide 19: Thank You
THANK YOU Website: www.tca-auto.com
Slide 20: About TCA
[ TRANS CHINA / cs omo SE OFT —<—<— — ABOUT TCA —_ ——-
Slide 21: Use of IPO Proceeds
Use of IPO Proceeds S$’ 000 Amount Allocated Amount Utilised as Balance as at at 14 June 2024 14 June 2024 Increasing the number of dealerships, showrooms 6,000 6,000(1) - and service centres in cities where we have existing operations, namely, Foshan, Shenzhen, Guangzhou, Chongqing, Changsha and Wu
Slide 22: Chongqing Renovation
Chongqing Renovation Chongqing New Transformation Renovation • Renovate Chongqing dealership to align with new franchise requirements • To be finished in late August 21
Trans-China Automotive Holdings — 1H2024 Earnings Presentation on 6ix