Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — H1 2020 Earnings Presentation
23 slides from Zhongsheng's earnings presentation, August 2020
Slide 1: 2020 Interim Results
2020 Interim Results August 2020
Slide 2: Disclaimer
Disclaimer ▪ These materials have been prepared by Zhongsheng Group Holdings Limited (“Zhongsheng” together with its subsidiaries, the “Group”) independently and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the
Slide 3: Achievements
7 OHeeeRBIRCo ZHONGSHENG GROUP HOLDINGS LIMITED Achievements PAE RABE
Slide 4: Achievements
Achievements Strong Recovery New car sales volume was 197,188 units in 20201H, decreased by 7.8% as in New Car Sales compared to the same period of 2019. Positive Growth in Revenue from after-sales and accessories segment increased by 6.1%, to RMB After-sales and Accessories 8.4 billion. Robust Grow
Slide 5: Business Update
7 OHeeeRBIRCo ZHONGSHENG GROUP HOLDINGS LIMITED Business Update PAE BEBE
Slide 6: Brand Mix and Dealerships
Brand Mix and Dealerships 「Brand plus Region」 Continuous focus on luxury brands and TOYOTA, expansions to first and second-tier and provincial capital cities, especially in southern and Eastern China. As of 30 June 2020, the total number of dealerships reached 365, covering 24 provinces and regions,
Slide 7: Nationwide Network
Nationwide Network Heilongjiang(5) Mercedes-Benz（PV） Liaoning(48) Mercedes-Benz（PV） Audi Mercedes-Benz（CV） FAW-TOYOTA Jaguar Land Rover Hebei(14) GZ-TOYOTA LEXUS Regions where the Group has presence Porsche LEXUS Audi BMW LEXUS Volvo BMW Jilin(8) FAW-TOYOTA GZ-TOYOTA GZ-TOYOTA GZ-Honda Mercedes-Benz
Slide 8: Regions & Expansions
Regions & Expansions Regional Distribution Newly Added Major Dealerships Southwest Northeast and Central 17% 2020/6 City 20% North Mercedes 1 Kunming 7% Lexus 1 Beijing Beijing, Shenzhen, Tianjin, BMW 5 Nanjing, Kunming South Shenzhen, Tianjin, 25% East TOYOTA 4 Changsha, Nanchang 31% Acquisitions o
Slide 9: New Car Sales
New Car Sales (units) New Car Sales Volume 500,000 455,705 450,000 412,017 1H 400,000 341,319 -7.8% Q2 350,000 300,753 Q1 300,000 243,681 +7.4% 250,000 213,762 197,188 -25.7% 200,000 150,000 97,577 116,185 124,729 100,000 72,459 50,000 0 2015 2016 2017 2018 2019 20191H 20201H 2019Q1 2020Q1 2019Q2 20
Slide 10: After-sales & Accessories
After-sales & Accessories Revenue from After-sales and Accessories (RMB million) 20,000 20.0% 17,843 17.2% 18,000 14,514 1H 14.5% 15.1% 16,000 11,594 13.8% 16.0% 14,000 9,140 12.6% 12.7% 7,300 14.4% +6.1% 12,000 13.4% 13.5% 12.0% 12.8% 8,415 Q1 10,000 12.3% 7,928 Q2 8,000 -8.3% 8.0% +22.2% 6,000 4,1
Slide 11: Value Added Services
Value Added Services (RMB million) Income from Value Added Services 3,200 2,885 2,800 2,404 2,400 1H Q2 2,000 1,789 +8.0% Q1 +25.7% 1,600 1,283 1,210 1,311 -13.1% 1,200 972 826 552 658 800 480 400 0 2015 2016 2017 2018 2019 20191H 20201H 2019Q1 2020Q1 2019Q2 2020Q2 (units) Volume for traded used-car
Slide 12: Financial Update
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Slide 13: Income Statements Highlight
Income Statements Highlight For the six-month ended 30 June (RMB million) 2020 2019 Flux Revenue 58,203.1 57,412.6 1.4% Gross Profit 5,409.6 5,198.3 4.1% Gross Margin 9.3% 9.1% 0.2pts Other income and gain 1,474.2 1,356.7 8.7% Operating Profit 3,802.2 3,561.3 6.8% Operating Profit Margin 6.5% 6.2% 0
Slide 14: Revenue Mix Analysis
Revenue Mix Analysis Revenue by segment Revenue contribution by segment (RMB million) 20191H 20201H +0.6% After-sales 50,000 13.8%, After- and sales and Accessories 40,000 Accessories 14.5% 30,000 49,485 49,788 +6.1% 20,000 7,928 8,415 10,000 86.2%, New Car New Car Sales 0 Sales 85.5% 20191H 20201H
Slide 15: Gross Profit & Income Analysis
Gross Profit & Income Analysis Gross profit/Margin of New Car Sales Gross Profit Contribution by New Car, After-sales and Accessories, (%) and Value Added Services 2,000 1,493 8.0% 1,500 1,315 6.0% 1,000 3.0% 4.0% 20191H 500 2.7% 2.0% 0 0.0% Value added New car (RMB million) 20191H 20201H service sa
Slide 16: Expense Analysis
Expense Analysis Selling and distribution costs Administrative Expenses (RMB million) (RMB million) 767 768 2,800 5.00% 800 2.00% 3.88% 3.97% 2,400 4.00% 2,000 600 1.50% 1,600 3.00% 400 1.34% 1.32% 1.00% 1,200 2,227 2,314 2.00% 800 200 0.50% 1.00% 400 0 0.00% 0 0.00% 20191H 20201H 20191H 20201H sell
Slide 17: Financial Position
Financial Position As of 31 As of 30 June December (RMB million) 2020 2019 2019 Cash and cash equivalents, cash in transit 8,589.0 6,967.0 6,365.2 Pledged bank deposits 1,315.6 1,152.2 1,341.0 Inventories 9,411.3 9,248.7 9,828.5 Total Assets 64,818.6 60,219.1 63,024.3 Short-term bank loans, other bo
Slide 18: Cash Flow Analysis
Cash Flow Analysis (RMB million) 20201H 20191H 2019 Net cash generated from operating activities 4,744 4,864 7,800 Net cash used in investing activities -1,093 -1,795 -3,139 Net cash generated from financing activities -1,536 -3,005 -4,712 Net cash generated from operating activities (RMB million) 9
Slide 19: Inventory Analysis
Inventory Analysis Inventory and Turnover Days (RMB million) (days） 12,000 50 10,981 9,829 45 43.5 9,411 10,000 9,249 40 8,000 34.5 7,510 30.8 35 32.0 29.7 6,530 29.8 31.2 30 6,289 6,000 25 20 4,000 15 10 2,000 5 0 0 2015 2016 2017 2018 2019 20191H 20201H 18
Slide 20: CAPEX Analysis
CAPEX Analysis EBITDA vs CAPEX (RMB million) 10,000 9,396 9,000 8,000 7,524 6,843 7,000 6,000 5,305 4,775 4,675 5,000 4,190 3,781 4,000 2,754 2,599 3,000 1,834 1,743 2,000 924 865 1,000 0 2015 2016 2017 2018 2019 20191H 20201H CAPEX EBITDA 19
Slide 21: Gearing Analysis
Gearing Analysis Bank Loans and Total Equity Total Liabilities/Total Assets (RMB million) (%) 23,000 70.0% 22,651 64.81% 65.06% 22,500 22,177 60.0% 22,000 50.0% 21,500 40.0% 21,014 21,000 30.0% 20,500 20,391 20.0% 20,000 10.0% 19,500 0.0% 19,000 2019 20201H 2019 20201H Bank Loan&Other Borrowings Tot
Slide 22: Q&A
7 OHeeeRBIRCo ZHONGSHENG GROUP HOLDINGS LIMITED Q&A PA REBHE
Slide 23: Thank You !
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