Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — H1 2022 Earnings Presentation
27 slides from Zhongsheng's earnings presentation, 2022
Slide 1: Interim Results
’ j p ae | WITERIM RESULT
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
01 Achievements 3
Slide 4: Achievements
Achievements New Car New car sales volume was 242,280 units in 20221H, decreased by Sales 12.1 %. After-sales and Revenue from after-sales and accessories segment increased by 13.4 Accessories %, to RMB 12.8billion. Value Added Income from value added services decreased by 4.4% to RMB1.5 Services bi
Slide 5: Business Update
“ OHeSERBRCo ZHONGSHENG GROUP HOLDINGS LIMITED usiness Update
Slide 6: Brand Mix and Dealerships
Brand Mix and Dealerships 「Brand plus Region」 Continuous focus on luxury brands and TOYOTA, further strengthen our leading advantages. As of 30 June 2022, the total number of dealerships reached 417, covering 25 provinces and regions, and over 110 cities across China. 8 national used car regional ce
Slide 7: Nationwide Network
Nationwide Network Liaoning(46) Heilongjiang(4) Mercedes-Benz（PV） Mercedes-Benz（PV） Mercedes-Benz（CV） LEXUS Jaguar Land Rover Regions where the Group has presence Hebei(14) FAW-TOYOTA LEXUS GZ-TOYOTA Audi Porsche BMW LEXUS Volvo BMW Jilin(8) FAW-TOYOTA GZ-TOYOTA GZ-TOYOTA Jiangxi ( 9) GZ-Honda Merce
Slide 8: Regions & Expansion
Regions & Expansion Regional Distribution Northeast Central 14% 9% Southwest North 14% 7% South East 25% 31% *10 newly-built stores, 2 M&As and 7 closures in 20221H. Newly Added Major Dealerships 2022 City Mercedes 5 Shaoxing、Taizhou、Nanjing、Nanchang、Fuzhou Lexus 3 Suzhou、Zhongshan、TIanjin（MA） 2 Hua
Slide 9: Operation Capability
Operation Capability Mercedes ◆ Nanjing 2022 Best livestream host in east region ◆ Suzhou 2022 Best livestream host in east region ◆ Chengdu 2022 Best communication award in west region. ◆ Hangzhou 2022 Best livestream host in east region ◆ Changchun、Heilongjiang Outstanding public welfare cases in
Slide 10: Digital Management
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Slide 11: Service Innovation
Service Innovation 6月27日 3月30日 华东一区、二区、华中、 大连UCC启动会 6月15日-17日 华北UCC启动会 西区、南一、南二区 5月15日 UCC启动会 成都中升二手车连锁超市 盛大开业 8个UCC（二手车中心）已投入运营，覆盖全国 11
Slide 12: New Car
New Car New car sales volume continued to outperform the market. (units) New Car Sales Volume 600,000 528,154 500,609 500,000 455,705 -12.1% 412,017 400,000 341,319 300,000 275,570 242,280 200,000 100,000 0 2017 2018 2019 2020 2021 20211H 20221H Luxury Brands Sales Volume Core Brand Growth (units) 1
Slide 13: After-sales & Accessories
After-sales & Accessories Aftersales and accessories business remains resilient. Revenue from After-sales and Accessories (RMB million) +13.4% 30,000 15.5% 14.9% 24,504 15.0% 25,000 14.4% 20,245 14.5% 14.0% 20,000 17,843 11,594 14,514 13.6% 14.0% 15,000 13.5% 13.5% 12.9% 13.4% 13.0% 10,000 12.5% 11,
Slide 14: Value Added Services
Value Added Services Car finance business continued to grow. (RMB million) Income from Value Added Services 4,000 3,528 3,600 3,150 3,200 2,885 2,800 2,404 2,400 -4.4% 1,789 2,000 1,572 1,503 1,600 1,200 800 400 0 2017 2018 2019 2020 2021 20211H 20221H Total insurance units Car Finance Penetration R
Slide 15: Pre-owned car
Pre-owned car Pre-owned car business continued to optimized. Pre-owned Car Sales Volume （units） -1.7% 70,000 66,735 65,606 65,000 60,000 55,000 50,000 45,000 40,000 35,000 20211H 20221H Retail Contribution (%） +11ppt 30% 24% 25% 20% 15% 13% 10% 5% 0% 20211H 20221H 15
Slide 16: NEV
NEV Strategic development of NEV business • Shenzhen and Qingdao Zhongsheng X-peng have been put into operation。 • Sales volume of EV models for existing brands increased by 54% yoy。 Qingdao | 青岛 Heilongjiang Jilin Inner Mongolia Beijing Liaoning 4S NEV Experience Center Tianjin 新能源销售服务体验中心 Hebei Sh
Slide 17: Financial Update
03 Financial Update 17
Slide 18: Revenue Mix Analysis
Revenue Mix Analysis Focused on core brands & revenue contribution of after market continued to increase. Revenue by segment Revenue contribution by segment (RMB million) 72,556 -5.2% 80,000 68,813 20211H 20221H 60,000 Used car After-sales Used car Sales Sales and 5.1% 40,000 +13.4% Accessories 11,3
Slide 19: Gross Profit & Income Analysis
Gross Profit & Income Analysis Contribution of gross profit from the after sales market continued to increase. Gross profit/Margin of New Car Sales Gross profit of pre-owned Car Sales (%) (RMB million) （%) (RMB million) 3,000 2,763 8.0% 300 249 223 2,201 2,000 6.0% 200 4.0% 1,000 3.8% 3.2% 100 2.0%
Slide 20: Expense Analysis
Expense Analysis Financial expenses ratio continued to decline & financial capability further strengthened Selling and distribution costs Administrative Expenses (RMB million) 4.33% (RMB million) 4,000 5.00% 3.94% 1,400 1,194 2.00% 3,500 1,126 4.00% 1,200 1,002 3,000 1,000 1.50% 2,500 3.00% 2,000 3,
Slide 21: Financial Position
Financial Position Solid financial standing. As of 31 As of 30 June December (RMB million) 2022 2021 Cash and cash equivalents, cash in transit 11,747.2 11,183.9 Inventories 14,376.9 11,190.0 Total Assets 87,441.9 85,474.1 Short-term bank loans, other borrowing 12,750.6 15,219.4 Long-term borrowings
Slide 22: Cash Flow Analysis
Cash Flow Analysis Stable operating cash flow. (RMB million) 20221H 20211H Net cash generated from operating activities 3,653 6,402 Net cash used in investing activities -835 -1,984 Net cash generated from financing activities -2,418 -2,135 Net cash generated from operating activities (RMB million)
Slide 23: Key Indicators
Key Indicators Continuous improvement in aftersales absorption rate. Inventory Turnover Days (days） 35 30.0 30 25 21.6 20.8 20 15 10 5 0 2021 20211H 20221H 115% Absorption Rate of After Sales Service 110% 110% 109% 105% 106% 99% 100% 104% 104% 95% 97% 90% 2017 2018 2019 2020 2021 20211H 20221H 23
Slide 24: CAPEX Analysis
CAPEX Analysis CAPEX remained prudent. EBITDA vs CAPEX (RMB million) 16,000 13,648 14,000 12,000 11,400 10,797 10,000 9,396 7,524 8,000 6,843 6,731 6,569 6,000 5,305 3,781 4,000 3,158 1,743 1,566 2,000 898 0 2017 2018 2019 2020 2021 20211H 20221H CAPEX EBITDA 24
Slide 25: Gearing Analysis
Gearing Analysis Financial ratios further improved Bank Loans and Total Equity Total Liabilities/Total Assets Interest Coverage Ratio (RMB million) (%) (%) 45,000 41,932 52.5% 1400.0% 40,706 40,000 52.4% 11.73 52.4% 1200.0% 11.29 35,000 52.3% 1000.0% 30,000 25,000 52.2% 800.0% 20,188 20,000 18,219 5
Slide 26: Financial Path
Financial Path Equal emphasis on scale advantage and efficiency improvement; after sales and used car business contribute to efficiency improvement. (RMB million) Revenue vs ROE (%) 200,000 175,103 26% 23.7% 148,348 25% 150,000 23.4% 24.9% 124,043 22.7% 24% 100,000 21.9% 23% 86,290 107,735 22% 50,00
Slide 27: Thank You!!
“ OHeSERBRCo ZHONGSHENG GROUP HOLDINGS LIMITED 27
Zhongsheng Group Holdings — H1 2022 Earnings Presentation on 6ix