Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — H1 2019 Earnings Presentation
23 slides from Zhongsheng's earnings presentation, August 2019
Slide 1: 2019 Interim Results
2019 Interim Results August 2019
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
OHS ERBIRZS ZHONGSHENG GROUP HOLDINGS LIMITED Achievements
Slide 4: Achievements
Achievements Solid Growth in New car sales volume was 213,762 units in 20191H，increased by New Car Sales 17.3% as compared to the same period of 2018. Robust Development in After-sales and Revenue from after-sales and accessories segment increased by Accessories 20.5%，to RMB 7.9 billion. Rapid Growt
Slide 5: Business Update
OHS ERBIRZS ZHONGSHENG GROUP HOLDINGS LIMITED Business Update
Slide 6: Brand Mix and Dealerships
Brand Mix and Dealerships Dealerships under operation Major Automaker Partners at 30 June 2019 Brand plus Region: Brand focusing on luxury and Mid-to-high-end Brands Luxury Brands TOYOTA, expansions to first and second-tier and 148, 43% provincial capital cities(with over 75% dealerships in key regi
Slide 7: Nationwide Network
Nationwide Network Heilongjiang(5) Mercedes-Benz（PV） Liaoning(47) Audi FAW-TOYOTA Mercedes-Benz（PV） Hebei(14) GZ-TOYOTA Mercedes-Benz（CV） Regions where the Group Porsche Jaguar Land Rover LEXUS LEXUS has presence Audi BMW Jilin(7) BMW GZ-TOYOTA Volvo GZ-Honda Mercedes-Benz（PV） FAW-TOYOTA Jiangxi ( 6
Slide 8: Operation Capability
Operation Capability LEXUS Mercedes ◆ Wenzhou： ◆ Shenzhen： 2018 Best Service Quality Award Best GM 2018 ◆ Dalian： ◆ Quanzhou： 2018年 Special Contribution on Hybrid Model Sales 2019 Annual Excellent Quality Effect Award in Southern China 2018 National Outstanding Dealership 2019 Best Performance in So
Slide 9: New Car Sales Segment
New Car Sales Segment New Car Sales Volume (units) 450,000 412,017 YoY Growth: 17.3% 400,000 341,319 350,000 300,753 300,000 243,681 250,000 207,289 213,762 200,000 182,268 150,000 100,000 50,000 0 2014 2015 2016 2017 2018 20181H 20191H Luxury Brands Sales Volume Mid-to-high-end Brands Sales Volume
Slide 10: After-sales and Accessories Segment
After-sales and Accessories Segment Revenue from After-sales and Accessories Business (RMB million) YoY Growth: 20.5% 16,000 20.0% 14,514 14,000 11,594 9,140 13.8% 16.0% 12,000 13.3% 6,825 7,300 10,000 13.4% 13.5% 7,928 12.0% 12.8% 8,000 12.5% 12.3% 6,578 6,000 8.0% 4,000 4.0% 2,000 0 0.0% 2014 2015
Slide 11: Value Added Services
Value Added Services Income from Value Added Services (RMB million) 2,404 2,400 YoY Growth: 20.9% 2,000 1,789 1,600 1,283 1,210 1,200 972 1,001 795 800 400 0 2014 2015 2016 2017 2018 20181H 20191H Trade Volume for Used-cars Car Finance Penetration Rate (units) YoY Growth: 32.6 % (%) 50.0% YoY Growth
Slide 12: Financial Update
OHS ERBIRZS ZHONGSHENG GROUP HOLDINGS LIMITED Financial Update
Slide 13: Income Statements Highlight
Income Statements Highlight For the six-month ended 30 June (RMB million) 2019 2018 Flux Revenue 57,412.6 49,305.5 16.4% Gross Profit 5,198.4 4,760.8 9.2% Gross Margin 9.05% 9.70% （-0.65）pts Other income and gain 1,356.7 1,112.0 22.0% Operating Profit 3,561.3 3,205.3 11.1% Operating Profit Margin 6.
Slide 14: Revenue Mix Analysis
Revenue Mix Analysis Total Revenue Revenue contribution by segment (RMB million) after- 20191H 60,000 sales 20181H After- and sales and 50,000 +16.4% 40,000 accesso accessori 57,413 ries, es, 13.8% 30,000 49,305 13.3% 20,000 10,000 0 New car 20181H 20191H new car sales, sales, 86.2% 86.7% Revenue by
Slide 15: Gross Profit and Value Added Service income
Gross Profit and Value Added Service income Gross profit/Margin of New Car Sales Gross Profit Contribution by New (RMB million) (%) Car, After-sales and Accessories, 2,000 8.0% 1,567 1,315 and Value Added Services 1,500 6.0% 1,000 2.7% 4.0% 20191H 500 3.7% 2.0% 0 0.0% Value added New car 20181H 2019
Slide 16: SG&A and Finance Costs
SG&A and Finance Costs Selling and distribution costs Administrative Expenses (RMB million) (RMB million) 701 767 2,400 5.00% 800 2.00% 3.98% 3.88% 2,000 4.00% 600 1.50% 1,600 3.00% 1.42% 1.34% 1,200 400 1.00% 2,227 1,966 2.00% 800 200 0.50% 400 1.00% 0 0.00% 0 0.00% 20181H 20191H 20181H 20191H sell
Slide 17: Financial Position
Financial Position As of 31 As of 30 June December (RMB million) 2019 2018 2018 Cash and cash equivalents, cash in transit 6,967.0 6,828.3 6,573.7 Pledged bank deposits 1,152.2 2,029.1 1,312.6 Inventories 9,248.7 9,147.9 10,980.5 Total Assets 60,219.1 54,312.8 57,168.2 Short-term bank loans, other b
Slide 18: Cash Flow Analysis
Cash Flow Analysis (RMB million) 20191H 20181H 2018 Net cash generated from operating activities 4,864 224 2,318 Net cash used in investing activities -1,795 -2,580 -4,233 Net cash generated from financing activities -3,005 3,517 3,003 Net cash generated from operating activities (RMB million) 6,000
Slide 19: Key Operational Indicators
Key Operational Indicators Inventory and Turnover Days Cash to Revenue Ratio (RMB million) (days） (%) 13.0% 10,000 32 30.8 12.5% 9,000 30 12.5% 8,000 25 12.0% 7,000 6,000 20 11.5% 5,000 9,148 9,249 15 11.0% 4,000 10.8% 3,000 10 10.5% 2,000 5 10.0% 1,000 0 0 9.5% 20181H 20191H 20181H 20191H inventory
Slide 20: CAPEX Analysis
CAPEX Analysis EBITDA vs CAPEX (RMB million) 8,000 7,524 6,843 7,000 6,000 5,305 4,775 5,000 4,190 3,781 3,753 4,000 3,075 3,012 2,754 3,000 2,599 2,163 1,834 1,655 2,000 1,489 924 1,000 0 2013 2014 2015 2016 2017 2018 20181H 20191H CAPEX EBITDA 19
Slide 21: Bank loans, other borrowings and Convertible Bonds
Bank loans, other borrowings and Convertible Bonds Total Debt and Total Equity Long-term and short- term debt (RMB million) (RMB million) 30,000 26,695 20,000 24,898 25,000 17,073 16,288 20,343 20,000 19,036 15,000 15,000 9,622 10,000 8,610 10,000 5,000 5,000 0 0 2018 20191H 2018 20191H total debt t
Slide 22: OHS ERBIRZS
OHS ERBIRZS ZHONGSHENG GROUP HOLDINGS LIMITED
Slide 23: Thank You !
OHS ERBIRZS ZHONGSHENG GROUP HOLDINGS LIMITED Thank You !
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