Trans-china Automotive Holdings Ltd. · SGX:VI2
Trans-china Automotive — FY2021 Earnings Presentation
27 slides from Trans-china Automotive's earnings presentation, March 2022
Slide 1: Gearing Up For Greater Growth: FY2021 Results Presentation
GE ARING UP F OR GRE ATE R GROWTH F Y 2 0 2 1 RE S U LT S P RE S E N TAT I ON
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: FY2021 Key Financial Highlights
F Y20 21 Key Financial Highlights 2
Slide 4: 2021 China Passenger Vehicle Market Summary
2021 China Passenger Vehicle Market Summary New and Pre-owned Automotive Sales Volume, PRC 38.3 37.5 35.4 32.7 Million 13.8 14.9 12.6 14.1 Units 24.5 22.6 20.1 21.3 2018 2019 2020 2021 New Pre-Owned New and Pre-owned Automotive Sales Value, PRC 4.8 4.6 4.7 4.3 0.9 0.9 0.9 RMB 0.8 Trillion 3.9 3.7 3.
Slide 5: Key Financial Highlights
Key Financial Highlights RMB’ Million Revenue By Segment Revenue 543 Profit Before Tax 510 12% 12% 163 4,600 4,516 180 160 137 4,400 4,214 140 4,200 120 FY2021 FY2020 100 4,000 3,770 80 3,800 60 49 3,600 40 3,400 20 3,200 88% 88% 0 3,972 3,705 2019 2020 2021 2019 2020 2021 Sale of Automobiles Provis
Slide 6: Profit & Loss
Profit & Loss RMB’ Million FY2018 FY2019 FY2020 FY2021 % Change FY20 vs FY21 Automobiles sold 7,075 8,842 10,143 10,809 6.6 Revenue 3,533.9 3,769.5 4,214.0 4,515.7 7.2 Cost of Sales (3,318.2) (3,484.2) (3,897.8) (4,144.1) 6.3 Gross Profit 215.7 285.3 316.1 371.6 17.5 Other Income 79.3 57.3 86.6 99.5
Slide 7: Revenue and Gross Profit
Revenue and Gross Profit +/(-) FY 2020 FY 2021 Variance Revenue RMB’ Million RMB’ Million % Sale of automobiles 3,704.0 3,972.2 7.2% Provision of after-sales services 510.0 543.5 6.6% 4,214.0 4,515.7 7.2% Gross Profit Sale of automobiles 107.5 153.5 42.8% Provision of after-sales services 208.6 218.
Slide 8: Other Income
Other Income +/(-) FY 2020 FY 2021 Variance RMB’000 RMB’000 % Handling and commission fee income 48,541 68,839 41.8% Insurance rebate 14,429 10,503 -27.2% Deposit forfeited by customers 18,159 4,616 -74.6% Government grants 1,802 1,922 6.7% Pre-owned cars and fleet sale 1,039 8,579 725.7% commission
Slide 9: Other gains, net
Other gains, net +/(-) FY 2020 FY 2021 Variance RMB’000 RMB’000 % Gain on disposals of fixed assets 3,736 4,773 27.8% Exchange differences 389 2,318 495.9% Fair value and derecognition of convertible 1,670 - -100.0% notes Reversal of other payables - 4,092 100.0% Reversal of provision for impairment
Slide 10: Selling expenses
Selling expenses +/(-) FY 2020 FY 2021 Variance RMB’000 RMB’000 % Advertising expenses 16,112 15,964 -0.9% Employee benefit expenses 32,637 36,307 11.2% Travelling expenses 2,023 1,301 -35.7% Other tax expenses 21,128 13,178 -37.6% Depreciation 27,000 17,800 -34.1% 98,900 84,550 -14.5% 9
Slide 11: Administrative expenses
Administrative expenses +/(-) FY 2020 FY 2021 Variance RMB’000 RMB’000 % Auditor’s remuneration 4,127 3,061 -25.8% Bank charges 2,843 1,989 -30.0% Employee benefit expenses 78,011 89,499 14.7% Entertainment 605 699 15.5% Fuel and maintenance expenses 5,748 5,952 3.5% IT and security fees 5,172 7,272
Slide 12: Finance costs, net
Finance costs, net +/(-) FY 2020 FY 2021 Variance RMB’000 RMB’000 % Finance income -Bank interest income 917 1,485 62.0% 917 1,485 62.0% Finance costs -Interest expense on bills payable (7,023) (7,778) 10.8% -Interest expense on bank and other (41,588) (24,747) -40.5% borrowings -Interest expense on
Slide 13: Key Financial Statement Highlights
Key Financial Statement Highlights RMB’ Million FY2020 FY2021 % Change Revenue 4,214.0 4,515.7 7.2 Cost of Sales (3,897.8) (4,144.1) 6.3 Gross Profit 316.1 371.6 17.6 Other Income 86.6 99.5 14.9 Other Gains, Net 35.0 11.0 (68.6) Selling Expenses (98.9) (84.6) (14.5) Administrative Expenses (143.6) (
Slide 14: Key Financial Statement Highlights
Key Financial Statement Highlights RMB’ Million As at 31 December As at 31 December 2020 2021 ASSETS Non-current assets 590.3 587.3 Current assets 1,118.7 1,395.3 Liabilities Non-current liabilities 580.7 372.1 Current liabilities 1,048.9 1,318.1 EQUITY (NAV) 79.5 292.4 Working capital 69.9 77.2 Net
Slide 15: Key Operational/Financial Ratios
Key Operational/Financial Ratios FY2020 FY2021 Gross Margin 7.5% 8.2% Net Profit Margin 2.6% 2.7% EBITDA Margin 5.7% 5.8% Net interest bearing liabilities/Equity 8.4 1.9 Inventory Turnover Days 31 26 Group Absorption Ratio 91.6% 98.6% 14
Slide 16: Corporate Developments
Corporate Developments 15
Slide 17: Corporate Developments – New Genesis Dealership
Corporate Developments – New Genesis Dealership Construction photo of TCA Guangzhou Genesis Artist Rendering of TCA Guangzhou Genesis Bird’s eye view TCA Guangzhou Genesis • TCA is the exclusive partner for Genesis in Guangzhou and will operate the city’s first and only Genesis dealership • Commence
Slide 18: Corporate Developments – New Genesis Dealership
Corporate Developments – 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 2022 and G90 (full-size sedan) Genes
Slide 19: Corporate Developments – New BMW Service Centre
Corporate Developments – New BMW Service Centre BMW Service Centre – Shenzhen - Pingshan • Commenced construction of new BMW Service Centre in Shenzhen. • This new ‘after-sales only’ BMW outlet is located in Pingshan, one of Shenzhen’s western districts which is adjacent to Longggang, where the Comp
Slide 20: Other Network Developments
Other Network Developments 1. McLaren Supply Disruptions 2. Termination of Lotus Arrangement • The Company has terminated its arrangement with Lotus following a review of operations. • Lotus contributed approximately RMB2 million to total FY2021 revenue, while the original investment in Lotus was ap
Slide 21: Healthy Financial Position
Healthy Financial Position Strong cashflow for future acquisitions • Balance sheet liquidity of the Company is strong and access to capital for future expansion remains plentiful. The Company will continue to evaluate acquisition opportunities as they present themselves. Propose dividend payment of
Slide 22: Use of IPO Proceeds
Use of IPO Proceeds S$’ 000 Amount Allocated Amount Utilised as Balance as at at 25 February 2022 25 February 2022 Increasing the number of dealerships, showrooms 11,000 - 11,000 and service centres in cities where we have existing operations, namely, Foshan, Shenzhen, Guangzhou, Chongqing, Changsha
Slide 23: About TCA
Pppaneana) AUTOMOTIVE M3 OO —_—_——_ — 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 1 Genesis location 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 Chongqing Shenzhen Changsha Shenzhen Guangzhou Shenzhen - SC 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 2021, TCA averaged 2,600 automobile sales of units TCA’s BMW dealerships
Slide 27: Thank You
THANK YOU Website: www.tca-auto.com
Trans-China Automotive Holdings — FY2021 Earnings Presentation on 6ix