China Harmony Auto Holding Limited · HKEX:3836
China Harmony Auto — H1 2021 Earnings Presentation
26 slides from China Harmony Auto's earnings presentation, Sep 17, 2021
Slide 1: 2021 Interim Results Presentation
2021 Interim Results Presentation China Harmony Auto Holding Ltd. 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: Highlights of 1H2021 results
Business Overview丨Highlights of 1H2021 results Total Revenue RMB9.6 billion (incl. commission income) in 1H2021，up by 62.2% year on year Net Profit RMB401 million in 1H2021, expanding by 65.4% year on year New cars sale volume 22,447 units in 1H2021, increasing by 53.6% from the same period last yea
Slide 5: Brands portfolio
Business Overview丨Brands portfolio Operating 9 luxury brands And 5 ultra-luxury brands 5
Slide 6: Overview of sales network
Business Overview丨Overview of sales network As of 30 Jun 2021，a total number of 79 authorized outlets across 15 provinces in 39 cities Added 4 outlets in 1H2021, in which 1 is a newly developed ultra luxury brand Lamborghini • 2 Ferrari: located in Nanjing and Qingdao • 1 Lexus: located in Cangzhou
Slide 7: Network Expansion
Business Overview丨Network Expansion Ferrari Qingdao Ferrari Nanjing Lexus Cangzhou Lamborghini Wenzhou 7
Slide 8: Outlets distribution map
Business Overview丨Outlets distribution map Shanxi(2) - Bentley Beijing(7) - BMW Inner Mongolia(4) - Maserati - BMW - Alfa Romeo Hebei(3) - Lexus - Bentley Shandong (1) Jiangsu(7) - Ferrari - Maserati Shanxi(2) - Ferrari - Rolls Royce Hubei(5) - Alfa Romeo Henan (39) - BMW - BMW - Jaguar & - MINI Sha
Slide 9: Awards of our outlets in 1H2021
Business Overview丨Awards of our outlets in 1H2021 BMW & Mini Maserati Award for the best sales manager in northern Beijing Excellent Award for coating in 2021 Beijing region in Q1 and 1H2021 Champion under sales skills competition in Hubei and Changzhou Award for the best improvement of market share
Slide 10: 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 11: Revitalization of Byton
Business Overview丨Revitalization of Byton • Received $200 million from Foxconn in early 2021, with the aim of helping Byton reach the start of production (SOP) at its best • Various parties, including China Harmony, local government and FAW, are working on the debt recapitalization • Looking for str
Slide 12: New cars sales business
8 Business Overview丨New cars sales business: Growth engine is continuing in 1H2021 Historical new cars sale volume Unit: car 40,000 CAGR+10% 36,573 1H2021 35,000 32,796 26,998 30,000 25,000 24,620 25,917 +53.6% 22,447 20,000 14,613 15,000 10,000 5,000 0 2016 2017 2018 2019 2020 1H2020 1H2021 Sale vo
Slide 13: 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 467,000 (Incl. Mini) + 41.9% yoy + 51.2% yoy 17,116 123,003 + 27.0% yoy + 28.8% yoy 2,382 92,539 + 36.4% yoy + 46.
Slide 14: Aftersales Service
8 Business Overview丨Aftersales Service: Steady growth sustains Revenue from aftersales service A remarkable increase in repaired units Total repaired units Aftersales gross margin Unit: RMB Million CAGR+10% Unit: car 2,000 1,818 1H2021 100.0% 250,000 +39.6% 55.0% 1,800 1,686 90.0% 209,114 1,600 80.0
Slide 15: Value-added business
8 Business Overview丨Value-added business: Auto financing to drive commission income growth Revenue from Value-added service Penetration of auto financing Unit: RMB Million CAGR+20% 60.0% 58.9% 400 378 1H2021 327 50.0% 47.4% 350 324 307 +41.0% 300 252 40.0% 250 200 180 179 30.0% 150 20.0% 100 50 10.0
Slide 16: Financial Analysis
Financial Analysis Financial performance Analysis over operating expenses and liability Overview of financials Analysis over key indicators 16
Slide 17: Financial performance
Financial Analysis丨Financial performance Comprehensive Revenue Revenue from new cars sales (incl. commission income) and aftersales services Unit: RMB Million 10,000 +62.2% 9,600 New cars sales Aftersales service Unit: RMB Million 8,000 10,000 +64.3% 8,251 5,918 6,000 8,000 6,000 5,021 4,000 4,000 +
Slide 18: Cost management and debt analysis
Financial Analysis丨Cost management and debt analysis SG&A Expense Ratio Financial Expense Ratio Liability-To-Asset Ratio 6.5% 1.0% 0.9% 38.9% 6.3% 38.5% 0.7% 5.7% 1H2019 1H2020 1H2021 1H2019 1H2020 1H2021 2020 1H2021 18
Slide 19: Summary of key financials
Financial Analysis丨Summary of key financials Breakdown of Gross Profit for 1H2021 Financial leasing , 3.0% Unit： RMB Million 1H2020 1H2021 Year-on-Year Change Comprehensive Revenue (incl. 5,918 9,600 62.2% New cars commission income) sales , 40.1% Aftersales Gross Profit 520 859 65.3% services , 56.
Slide 20: 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 40 37 80 71 35 32 70 30 60 52 24 25 50 20 40 34 34 30 15 30 23 10 20 5 10 0 0 2019 2020 1H2021 2019 2020 1H2021 Absorption Ratio Annualized ROE 90.0% 80
Slide 21: Industry Outlook
Development Strategies丨Industry Outlook In line with China’s development policies （Big consumption and “From virtual economy to real economy”） Rapid A huge market growth in Consumption upgrade (with 1.4 billion population) next five years Power of branding 21
Slide 22: "Three Focuses"
Development Strategies丨”Three Focuses” Focus on the core business Keep improving return on Focus on the Focus on efficiency key brands equity and quality growth 22
Slide 23: Focus on the core business
Development strategies丨Focus on the core business One Core Two Wings”：focus on the core business, and spin off NEV business Unlock the value Focus on the core business To seek independent through independent financing financing 23
Slide 24: 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 core Rolls Royce regions • Expand the coverage into areas with great potentials 24
Slide 25: Focus on efficiency and quality
Development Strategies丨Focus on efficiency and quality 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 • Two mind
Slide 26: Thank you!
Thank you！ Hong Kong Investor Relation Office Email: hk@hexieauto.com
China Harmony Auto Holding — H1 2021 Earnings Presentation on 6ix