China Meidong Auto Holdings Ltd. · HKEX:1268
China Meidong Auto — FY2020 Earnings Presentation
27 slides from China Meidong Auto's earnings presentation, Mar 26, 2021
Slide 1: 2020 Annual Results Presentation
简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN (Stock code: 1268.HK) 2020 Annual Results Presentation March 2021
Slide 2: Content
简单 · 直接 · 数据化 Content SIMPLE DIRECT DATA DRIVEN 2020 Annual Results Highlight Financial Review and Analysis Outlook & Strategy
Slide 3: 2020 Annual Results Highlight
简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN 2020 Annual Results Highlight 简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN
Slide 4: Summary
简单 · 直接 · 数据化 Summary SIMPLE DIRECT DATA DRIVEN Solid financial performance in highly uncertain 2020 Fast and predictable growth in revenue, profit and cashflow Operational efficiency & predictability • Record low inventory turnover days – 9 days • Maintained high ROE and ROA • Improvement on profit
Slide 5: Another Year of Solid Performance amid Extreme Operating Environment
Another Year of Solid Performance amid Extreme Operating Environment 简单 SIMPLE · 直接 DIRECT · 数据化 DATA DRIVEN Total Revenue Net Profit RMB mn RMB mn 20,207 851 16,210 80* 558 11,067 7,683 363 6,263 279 771 4,808 3,855 157 115 106 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 *
Slide 6: Efficiency Enhancement Led to High ROA and ROE
简单 · 直接 · 数据化 Efficiency Enhancement Led to High ROA and ROE SIMPLE DIRECT DATA DRIVEN Inventory Turnover Days ROA 12.85%2 9.37% 9.41% 9.92%1 8.71% 58.0 5.44% 6.06% 4.46% 46.4 2014 2015 2016 2017 2018 2019 2020 1 Profit for the Year / Total assets 2 (Profit for the Year + non-operating, non-cash, on
Slide 7: Improving Revenue Mix
简单 · 直接 · 数据化 Improving Revenue Mix SIMPLE DIRECT DATA DRIVEN Luxury Brand Focus Contribution of Luxury Brand to New Car Sales Revenue Revenue Contribution of Luxury Brands 84.0% 81.3% 76.1% 75.9% 81.2% 84.0% 70.6% 60.4% 70.2% 20,000 44.0% 54.4% 70.0% 60.4% 16,967 54.1% 13,166 43.9% 20.0% 15,000 -30
Slide 8: Balanced Growth – New Store and M&A Expansion
Balanced Growth – New Store and M&A Expansion 简单 SIMPLE · 直接 DIRECT · 数据化 DATA DRIVEN No. of 2019 2020 stores Porsche 6 7 Beijing (4) Hebei (4) BMW/ Mini 24 26 Shandong (1) Gansu (1) Lexus 14 16 Anhui(6) Hubei (2) Jiangxi (8) New Stores Hunan (10) Audi 1 1 Fujian (3) Guangdong (24) Toyota 12 12 Hyun
Slide 9: Acquisitions Consistent with Proven Strategy
简单 · 直接 · 数据化 Acquisitions Consistent with Proven Strategy SIMPLE DIRECT DATA DRIVEN ✓ Established a new specialized M&A team in 2020 ✓ Completed acquisition of one Lexus in Nanjing and one single city single store BMW in Guangan, Sichuan according to stated strategies ✓ Established reasonable pipel
Slide 10: Customer Return Ratio (CRR) Program – In Progress Data
简单 直接 数据化 Customer Return Ratio (CRR) Program – In Progress Data SIMPLE · DIRECT · DATA DRIVEN ✓ Launched 1st pilot program in August 2020 ✓ Expanded to 60 stores as of March 2021 CRR (Test sites data) CRR enhancing range: 5% ~ 15% Customer-initiated contacts: 10% to 30% Reservation bookings: 45% to
Slide 11: Record High Dividend Payout
简单 · 直接 · 数据化 Record High Dividend Payout SIMPLE DIRECT DATA DRIVEN ✓ Dividend of RMB0.3861 per share for FY2020 Dividend Payout since IPO Dividend per share (RMB) Payout Ratio 0.4500 64.0% 55.0% 49.0% 50.7% 60.0% 0.4000 0.3861 Proposed final dividend of RMB0.2410 per share 45.8% 40.0% 0.3500 40.0%
Slide 12: Financial Review and Analysis
简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN Financial Review and Analysis 简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN
Slide 13: 2020 Annual Results Overview
简单 · 直接 · 数据化 2020 Annual Results Overview SIMPLE DIRECT DATA DRIVEN RMB’000 2019 2020 Change Revenue 16,210,019 20,207,446 +24.7% Gross profit 1,557,630 2,035,459 +30.7% Other income 153,632 95,608 -37.8% Profit for the Year 557,527 770,578 +38.2% Profit for the Year1 557,527 850,759 +52.6% (exclud
Slide 14: Revenue Analysis
简单 · 直接 · 数据化 Revenue Analysis SIMPLE DIRECT DATA DRIVEN Overall Revenue Revenue from New Car Sales RMB mn RMB mn 17,956 14,384 2019 2020 Revenue from After-sales Service RMB mn 20,207 16,210 2,251 1,826 2019 2020 2019 2020 14
Slide 15: Revenue Analysis by Brands
简单 · 直接 · 数据化 Revenue Analysis by Brands SIMPLE DIRECT DATA DRIVEN As a % of total revenue in 2020 As a % of total revenue in 2019 BMW 35.4% BMW 34.1% 2020 overall BMW Porsche Porsche 2019 overall BMW 17.7% revenue 45.3% 19.0% 47.4% Lexus revenue RMB20,207 mn 20.8% Lexus Porsche 2020 After-sales RMB
Slide 16: Volume Analysis by Brands
简单 · 直接 · 数据化 Volume Analysis by Brands SIMPLE DIRECT DATA DRIVEN As a % of total volume in 2020 As a % of total volume in 2019 Porsche BMW 7.8% 36.3% Porsche 8.1% BMW 2020 34.1% Total number of 2019 Total number of cars sold: Toyota cars sold: Toyota 57,200 units 32.0% 34.9% 49,359 units Lexus Lexu
Slide 17: Gross Profit and Gross Margin Analysis
简单 · 直接 · 数据化 Gross Profit and Gross Margin Analysis SIMPLE DIRECT DATA DRIVEN Overall Gross Profit and Gross Margin Gross Profit Margin Analysis RMB mn 0.1 2019 2020 Change 10.1% 0.1 2,500 9.6% New car sales 5.0% 5.5% +0.5p.p. 0.1 2,000 0.1 0.1 1,500 0.1 0.1 ➢ Luxury brands 5.2% 5.8% +0.6p.p. 1,000
Slide 18: Other Income Analysis
简单 · 直接 · 数据化 Other Income Analysis SIMPLE DIRECT DATA DRIVEN Other Income Steady Growth in Commission Income under Value-added Services RMB’000 2019 2020 RMB ‘000 Commission 116,284 118,953 Interest income on financial assets measured at amortized cost 10,964 22,293 Management service income 11,564
Slide 19: Net Profit and Net Margin Analysis
简单 · 直接 · 数据化 Net Profit and Net Margin Analysis SIMPLE DIRECT DATA DRIVEN Net Profit and Net Profit Margin Major Expenses RMB mn (% of revenue) 2019 2020 Change 1200 4.2%2 0.0 0.0 1000 3.4% 8511 Distribution costs 3.0% 2.7% -0.3p.p. 0.0 800 80* 0.0 0.0 600 0.0 771 Administrative expenses 2.4% 2.2%
Slide 20: Balance Sheet Summary
简单 · 直接 · 数据化 Balance Sheet Summary SIMPLE DIRECT DATA DRIVEN RMB’000 As at 31 Dec 2019 As at 31 Dec 2020 Total assets 5,924,920 7,770,349 Cash and cash equivalents 1,123,892 2,538,030 Pledged bank deposits 961,729 558,572 Total liabilities 4,155,572 4,425,774 Interest-bearing bank loan and corporat
Slide 21: Cash Flow Statement Summary
简单 · 直接 · 数据化 Cash Flow Statement Summary SIMPLE DIRECT DATA DRIVEN For the 12 months ended 31 December RMB’000 2019 2020 Cash generated from operations 1,087,044 1,445,794 Net cash generated from operating activities 930,675 1,191,107 Net cash used in investing activities (283,459) (145,372) Net ca
Slide 22: Outlook & Strategy
简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN Outlook & Strategy 简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN
Slide 23: Outlook and Strategy
简单 · 直接 · 数据化 Outlook and Strategy SIMPLE DIRECT DATA DRIVEN Steady strategic directions: Single city single store + luxury brands Drive operational and organizational efficiency Proactively explore and execute M&A opportunities Improve after sales with Customer Return Ratio (CRR) focus Healthy bala
Slide 24: Appendix
简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN Appendix 简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN
Slide 25: Shareholding Structure
简单 · 直接 · 数据化 Shareholding Structure SIMPLE DIRECT DATA DRIVEN Apex Holdings* 100% Apex Sail Others 56.46% 43.54% CHINA MEIDONG AUTO HOLDINGS LIMITED 中国美东汽车控股有限公司 (1268.HK) *Apex Holdings is a trust asset of the Ye Family Trust, a revocable discretionary family trust which was established by Mr. Ye
Slide 26: Disclaimer
简单 · 直接 · 数据化 Disclaimer SIMPLE DIRECT DATA DRIVEN This presentation has been prepared by, and is subject to the copyright of, China MeiDong Auto Holdings Limited (“MeiDong Auto” or the “Company”) . No part of this presentation may be reproduced, transmitted, stored in a retrieval system or translat
Slide 27: Investor Enquiries
简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN Investor Enquiries Email: ir@meidongauto.com winny@meidongauto.com betha@meidongauto.com ir@dlkadvisory.com Thank You 简单 · 直接 · 数据化 SIMPLE DIRECT DATA DRIVEN
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