China Harmony Auto Holding Limited · HKEX:3836
China Harmony Auto — H1 2022 Earnings Presentation
25 slides from China Harmony Auto's earnings presentation, Oct 3, 2022
Slide 1: 2022 Interim Results Presentation
中期业绩演示材料 2022 Interim Results Presentation 中国和谐汽车控股有限公司 !"#$%&'%()*$+&,-.*&'*/0#$1&2.03 股票代码 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 2022 interim results
Business Overview丨Highlights of 2022 interim results Total Revenue RMB8.1 billion (incl. commission income) in 2022 1H，down by 15.3% year on year Net Profit RMB309 million（excl. impairment of BYTON) in 2022 1H, contracting by 25.5% year on year New cars sale volume 17,190 units in 2021 1H, decreasin
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 2022，a total number of 76 authorized outlets across 16 provinces in 40 cities We converted 1 store of Maserati into Bentley to improve the sales efficiency and profitability. • 1 Bentley: located in Beijing 4 stores under construction: • 2 Fer
Slide 7: Network Expansion
Business Overview丨Network Expansion Bentley Beijing 7
Slide 8: Outlets Distribution
Business Overview丨Outlets Distribution • Cover 16 provinces and 40 cities 8
Slide 9: Awards of our outlets in 2022 1H
Business Overview丨Awards of our outlets in 2022 1H The best case for campaigning in 2022 1Q 2021 Maserati Customer Relationship Maintenance BMW&MINI China After-sales Service Elite Beijing Competition eService Special Competition 2021 M&S China Dealer Sales Process Best Runner-up Wuxi Customer Exper
Slide 10: NEV layout — NEV Aftersales
Business Overview丨NEV layout —— NEV Aftersales Financial investment • Navigating the new business model in the world of NEV • Dangdang New Energy，an O2O platform specializing in NEV sales and aftersales services • Focus on building up an ecosystem that covers the frontend (sales) to backend demand (
Slide 11: New cars sales business
8 Business Overview丨New cars sales business Historical New Car Sales Unit：car 50,000 40,791 40,000 36,573 32,796 30,000 25,917 26,988 24,620 22,447 -23.4% 20,000 17,190 10,000 - 2016 2017 2018 2019 2020 2021 2021 1H 2022 1H Unit：car Luxury Brands Unit：car Ultra Luxury Brands 25,000 21,972 -24.0% 500
Slide 12: Key brands' volume analysis
Business Overview丨Key brands’volume analysis Retail volume in China Harmony’s sales volume 363,590 13,090 -22.0% yoy -23.5% yoy (Incl. Mini) -23.3% yoy 86,753 -29.5% yoy 1,828 435 +44.5% yoy +365.2% yoy 107 1,867 -2.4% yoy +10.3% yoy 150 737 -8.3% yoy +2.4% yoy 42 12 Note: data source from Bloomberg
Slide 13: Aftersales Service
8 Business Overview丨Aftersales Service: Revenue from aftersales service Repaired units Unit: RMB Million Unit: Car 2,500 2,326 209,114 -5.7% 200,000 197,112 2,000 1,818 1,686 180,000 1,500 1,366 -8.8% 1,247 1,280 160,000 1,097 1,001 1,000 140,000 500 120,000 - 100,000 2016 2017 2018 2019 2020 2021 2
Slide 14: Value-added business
8 Business Overview丨Value-added business: Revenue from value-added service Penetration of auto financing Unit: RMB Million 62.0% +1.3% pts 500 466 60.2% 450 60.0% 58.9% 400 378 350 327 324 58.0% 307 300 -10.7% 252 56.0% 250 225 200 180 54.0% 150 100 52.0% 50 0 50.0% 2016 2017 2018 2019 2020 2021 202
Slide 15: Financial Analysis
Financial Analysis Financial performance Cost management and debt analysis Breakdown of gross profit Analysis over key indicators 15
Slide 16: Financial performance
Financial Analysis丨Financial performance Comprehensive Revenue Revenue from new cars sales (incl. commission income) and aftersales services Unit: RMB Million Unit: RMB Million 9,600 9,000 8,251 New Car Sal es Aftersales Services 10,000 -15.3% 8,000 -16.3% 8,132 6,906 7,000 6,000 5,000 5,000 4,000 3
Slide 17: Cost management and debt analysis
Financial Analysis丨Cost management and debt analysis SG&A Expense Financial Expense Liability-To-Asset Ratio Unit: RMB Million Unit: RMB Million +2.9% pts 550 65.0 41.4% 38.5% 537.9 61.2 540 530 60.0 57.0 -6.8% 520 55.0 510 500 -9.0% 50.0 489.5 490 480 45.0 470 460 40.0 2021 1H 2022 1H 2021 1H 2022
Slide 18: Breakdown of Gross Profit
Financial Analysis丨Breakdown of Gross Profit Breakdown of Gross Profit for 2022 1H Breakdown of Gross Profit for 2021 1H Financial leasing, Financial leasing 4.79% 3.01% New Car Sales 32.18% New car sales 40.11% Aftersales Aftersales service service 56.88% 63.03% 18
Slide 19: 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 +7 Days +7 Days -2 Days 31 34 30 32 24 23 2021 1H 2022 1H 2021 1H 2022 1H Absorption Ratio Annualized ROE -1.8% pts (excluding the impairment of BYTON)
Slide 20: Industry Outlook
Development Strategies丨Industry Outlook • The macro economy is in a period of bottoming out and recovery, and the trend brought about by consumption upgrades will further drive the demand for luxury and ultra-luxury vehicles. Structral Growth • Policies such as financial subsidies, reduction of purc
Slide 21: Three Focuses
Development Strategies丨Three Focuses Focus on the core business Focus on the Keep key brands improving return on equity Focus on efficiency and quality growth 21
Slide 22: Focus on the core business
Development strategies丨Focus on the core business Focus on the core business, and spin off NEV business Focus on the core business To seek independent financing 22
Slide 23: 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 Rolls Royce core regions • Expand the coverage into areas with great potentials 23
Slide 24: Focus on efficiency and quality
Development Strategies丨Focus on efficiency and quality Concentrate on core business Continue to enhance operating efficiency • Ride on the trend: NEV | Used cars • One standard：Performance-centric • Broad-based planning: Scale | Users Experience • Two mindsets：Capability | Performance • Execution: M
Slide 25: Thank you!
HARMONY AUTO Aaa Thank you ! Hong Kong Investor Relation Office Email: hk@hexieauto.com
China Harmony Auto Holding — H1 2022 Earnings Presentation on 6ix