Trans-china Automotive Holdings Ltd. · SGX:VI2
Trans-china Automotive — FY2022 Earnings Presentation
27 slides from Trans-china Automotive's earnings presentation, Feb 27, 2023
Slide 1: Gearing Up for Greater Growth: FY2022 Results Presentation
GEARING UP FOR GREATER GROWTH F Y 2 0 2 2 R E S U LT S P R E S E N T AT I O N 27 February 2023
Slide 2: Disclaimer
Disclaimer This presentation is prepared for information purposes only, without regard to the objectives, financial situation nor needs of any specific person. This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any offer to buy or sub
Slide 3: Key Financial Highlights
AUTOMOTIVE Key Financial Highlights Za a 1 , “| ay a a. US ae Ly
Slide 4: 2022 China Passenger Vehicle Market Summary
2022 China Passenger Vehicle Market Summary New and Pre-owned Automotive Sales Volume, PRC 36.2 35.6 33.3 33.4 31.9 13.8 14.9 12.9 Million 12.6 13.2 Units 22.4 20.7 19.3 20.1 20.5 2018 2019 2020 2021 2022* New Pre-Owned New and Pre-owned Automotive Sales Value, PRC 4.8 4.9 5.0 4.6 4.3 0.9 0.9 1.1 1.
Slide 5: Key Highlights - Revenue
Key Highlights - Revenue RMB’ Million Breakdown By Segment Revenue 543 505 12% 13% 4,600 4,400 FY2021 FY2022 4,200 ▼10.8% YoY 4,000 3,800 4,516 88% 87% 4,214 3,972 3,518 3,600 4,027 3,400 3,770 Sale of Automobiles 3,200 Provision of After-Sales Services 2019 2020 2021 2022 Segment YoY Sale of Automo
Slide 6: Profit & Loss
Profit & Loss % Change RMB’ Million FY2018 FY2019 FY2020 FY2021 FY2022 FY22 vs FY21 Automobiles sold 7,075 8,842 10,143 10,809 9,904 (8.4) Revenue 3,533.9 3,769.5 4,214.0 4,515.7 4,026.6 (10.8) Cost of Sales (3,318.2) (3,484.2) (3,897.8) (4,144.1) (3,829.5) (7.6) Gross Profit 215.7 285.3 316.1 371.6
Slide 7: Key Financial Statement Highlights
Key Financial Statement Highlights RMB’ Million FY2022 FY2021 % Change Revenue 4.026.6 4,515.7 (10.8) Cost of Sales (3,829.5) (4,144.1) (7.6) Gross Profit 197.1 371.6 (47.0) Other Income 122.9 99.5 23.5 Other Gains, Net 6.6 11.0 (40.0) Selling Expenses (100.5) (84.6) 18.8 Administrative Expenses (16
Slide 8: Revenue and Gross Profit
Revenue and Gross Profit +/(-) FY 2022 FY 2021 Variance Revenue RMB’ Million RMB’ Million % Sale of automobiles 3,518.2 3,972.2 (11.4%) Provision of after-sales services 505.2 543.5 (7.0%) Agency revenue 3.2 - 100.0% 4,026.6 4,515.7 (10.8%) Gross Profit Sale of automobiles (0.7) 153.5 (100.5%) Provi
Slide 9: Selling expenses
Selling expenses +/(-) FY 2022 FY 2021 Variance RMB’000 RMB’000 % Advertising expenses 15,243 15,964 (4.5%) Employee benefit expenses 34,571 36,307 (4.8%) Travelling expenses 1,188 1,301 (8.7%) Other tax expenses 9,775 13,178 (25.8%) Depreciation 39,706 17,800 123.1% 100,483 84,550 18.8% 8
Slide 10: Administrative expenses
Administrative expenses +/(-) FY 2022 FY 2021 Variance RMB’000 RMB’000 % Auditor’s remuneration 3,072 3,061 0.4% Bank charges 2,007 1,989 0.9% Employee benefit expenses 89,467 89,499 0.0% Entertainment 976 699 39.6% Fuel and maintenance expenses 6,338 5,952 6.5% IT and security fees 7,174 7,272 (1.3
Slide 11: Finance costs, net
Finance costs, net +/(-) FY2022 FY 2021 Variance RMB’000 RMB’000 % Finance income -Bank interest income 6,246 1,485 320.6% 6,246 1,485 320.6% Finance costs -Interest expense on bills payable (3,610) (7,778) (53.6%) -Interest expense on bank and other (17,227) (24,747) (30.4%) borrowings -Interest ex
Slide 12: Key Highlights - Profits
Key Highlights - Profits RMB’ Million Gross Profit/Margin By Segment Gross Profit | Gross Profit Margin 500 8.2% 50.0% Gross Profit (RMB ’m) FY2021 FY2022 450 7.6% 7.5% 5.0% 400 0.0% 350 Sale of Automobiles 153.5 (0.7) 300 372 -50.0% 250 316 ▼47.0% YoY Provision of After Sales Services 218.1 194.6 2
Slide 13: Key Balance Sheet Highlights
Key Balance Sheet Highlights RMB’ Million As at 31 December 2022 As at 31 December 2021 ASSETS Non-current assets 627.0 587.3 Current assets 1,189.1 1,395.3 Total 1,816.2 1,982.6 LIABILITIES Non-current liabilities 332.8 372.1 Current liabilities 1,187.3 1,318.1 Total 1,520.1 1,690.2 EQUITY (NAV) 29
Slide 14: Key Operational/Financial Ratios
Key Operational/Financial Ratios FY2022 FY2021 Profitability Ratios Gross Profit Margin 4.9% 8.2% Net Profit Margin 0.5% 2.7% EBITDA Margin 3.1% 5.8% Inventory Turnover Days 38.6 days 25.5 days Group Absorption Ratio 94.8% 98.6% Balance Sheet Ratios 31 December 2022 31 December 2021 Net working capi
Slide 15: Corporate Developments
iran tama AUTOMOTIVE Mi MO Corporate Developments
Slide 16: Looking forward
Looking forward Challenges in FY2022 Opportunities/Recovery • Economic slowdown – GDP grew 3% in 2022 one of its worst • Consumer consumption is expected to levels in nearly half a century and 4Q grew 2.9% on strict recover on the back of pent-up demand and COVID curbs and a property market slump hi
Slide 17: New Genesis Dealership
New Genesis Dealership About Genesis • Two segments: sedans (G70 and G80) and mid-size SUV (GV80) • Two fully electrified models: Electrified GV70 and Electrified GV80 • Upcoming launches: Electrified GV60 (fully electric SUV) expected in 2023 Genesis G70 sedan Genesis Electrified G80 sedan Genesis
Slide 18: New Genesis Dealerships
New Genesis Dealerships TCA Guangzhou Genesis TCA Changsha Genesis TCA Foshan Genesis • Store opened in August 2022 • Store opened in December 2022 • Store to open during Q2 2023 • TCA’s first Genesis store • TCA’s second dealership • TCA’s third dealership 17
Slide 19: Shenzhen BMW Service Centre
Shenzhen BMW Service Centre BMW Service Centre – Shenzhen - Pingshan • Commenced operations in December 2022 • This new ‘after-sales only’ BMW outlet is located in Pingshan, one of Shenzhen’s western districts which is adjacent to Longggang, where the Company’s other Shenzhen-based BMW dealership is
Slide 20: Shenzhen BMW Service Centre
Shenzhen BMW Service Centre 19
Slide 21: Chongqing land
Chongqing land • Chongqing land is 22,600 sq m and located in Chayuan district business corridor • TCA Chongqing BMW occupies approximates half of the land • Chongqing land and building is valued at RMB 290M • Approximately half of the land is vacant for future development 20
Slide 22: Use of IPO Proceeds
Use of IPO Proceeds S$’ 000 Amount Allocated Amount Utilised as Balance as at at 22 February 2023 22 February 2023 Increasing the number of dealerships, showrooms 11,000 6,000(1) 5,000 and service centres in cities where we have existing operations, namely, Foshan, Shenzhen, Guangzhou, Chongqing, Ch
Slide 23: About TCA
—_——_—_—_ — ABOUT TCA — ——
Slide 24: Dealership Model
Dealership Model Anchored by new automobile sales which is one of the multiple business ▪ 5 BMW locations ▪ Includes referrals for automobile segments ▪ 4 McLaren locations New financing, referrals for insurance and Automobile ▪ 3 Genesis locations Automobile Agency car registration agency services,
Slide 25: Key Brands and Locations
Key Brands and Locations Four McLaren Showrooms Five BMW Locations Guangzhou Wuhan Foshan Wuhan Shenzhen Changsha Shenzhen Guangzhou Shenzhen Guangzhou One Genesis Showroom 24
Slide 26: A Leading Automobile Dealership Group in the Greater Bay Area
A Leading Automobile Dealership Group in the Greater Bay Area 1 Strategic presence in key automobile 2 High earnings visibility driven by markets in PRC After-Sales Services business ▪ Key player in the Greater Bay Area ▪ In 2022, TCA the average sales price was RMB355,000 ▪ TCA’s BMW dealerships in
Slide 27: Thank You
THANK YOU Website: www.tca-auto.com
Trans-China Automotive Holdings — FY2022 Earnings Presentation on 6ix