Trans-china Automotive Holdings Ltd. · SGX:VI2
Trans-china Automotive — FY2023 Earnings Presentation
23 slides from Trans-china Automotive's earnings presentation, March 2024
Slide 1: Gearing Up for Greater Growth: FY2023 Results Presentation
GEARING UP FOR GREATER GROWTH F Y 2 0 2 3 R E S U LT S P R E S E N T AT I O N March 2024
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: 2023 China Passenger Vehicle Market Summary
2023 China Passenger Vehicle Market Summary New and Pre-owned Automotive Sales Volume, PRC 35.6 36.5 31.9 33.3 33.4 14.9 12.9 14.8 Million 12.6 13.2 Units 20.7 19.3 20.1 20.5 21.7 2019 2020 2021 2022 2023* New Pre-Owned New and Pre-owned Automotive Sales Value, PRC 5.4 4.6 4.9 5.0 4.3 1.1 0.9 1.1 1.
Slide 5: New Energy Vehicles
New Energy Vehicles • NEVs represented roughly 36% of total new car sales in FY2023 up from 28% the year before • NEV sales were approximately 7.8 million units (total new car market was 21.7 million units) • Most NEVs are priced between RMB 100,000 to RMB 200,000 segment • There is currently price
Slide 6: Profit & Loss Since 2018
Profit & Loss Since 2018 % Change RMB’ Million FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY23 vs FY22 Automobiles sold 7,075 8,842 10,143 10,809 9,904 8,667 (12.5) Revenue 3,533.9 3,769.5 4,214.0 4,515.7 4,026.6 3,455.5 (14.2) Cost of Sales (3,318.2) (3,484.2) (3,897.8) (4,144.1) (3,829.5) (3,394.8)
Slide 7: Key Income Statement Highlights
Key Income Statement Highlights RMB’ Million FY2022 FY2023 YoY% Units delivered 9,904 8,667 (12.5) Revenue 4,026.6 3,455.5 (14.2) Gross Profit 197.1 60.7 (69.2) Other Income 122.9 201.7 64.1 Other Gains, Net 6.6 4.8 (27.3) SG&A (267.2) (292.1) 9.3 Impairment charge - (25.8) n.m. Operating Profit 59.
Slide 8: Revenue and Gross Profit
Revenue and Gross Profit +/(-) FY2022 FY2023 Variance Revenue RMB’ Million RMB’ Million % Sale of automobiles 3,518.2 2,943.6 (16.3%) Provision of after-sales services 505.2 505.8 0.1% Agency revenue 3.2 6.1 90.6% 4,026.6 3,455.5 (14.2%) Gross Profit Sale of automobiles (0.7) (122.7) n.m. Provision
Slide 9: Other Income
Other Income +/(-) FY2022 FY2023 Variance RMB’000 RMB’000 % Handling and commission fee income 88,321 173,573 96.5% Insurance rebate 7,903 4,952 (37.3%) Deposits forfeited by customers 6,541 3,547 (45.8%) Government grants 4,224 199 (95.3%) Pre-owned cars and fleet sale commissions 9,512 9,565 0.6%
Slide 10: Selling expenses
Selling expenses +/(-) FY2022 FY2023 Variance RMB’000 RMB’000 % Advertising expenses 15,243 19,747 29.5% Employee benefit expenses 56,233 57,910 3.0% Travelling expenses 1,188 926 (22.1%) Other tax expenses 9,775 12,570 28.6% Depreciation 39,707 49,024 23.5% 122,146 140,177 14.8% 9
Slide 11: Administrative expenses
Administrative expenses +/(-) FY2022 FY2023 Variance RMB’000 RMB’000 % Auditor’s remuneration 3,072 2,174 (29.2%) Bank charges 2,007 2,587 28.9% Employee benefit expenses 67,804 67,214 (0.9%) Entertainment 976 919 (5.8%) Fuel and maintenance expenses 6,338 6,679 5.4% IT and security fees 7,174 8,535
Slide 12: Finance costs, net
Finance costs, net +/(-) FY2022 FY2023 Variance RMB’000 RMB’000 % Finance income -Bank interest income 6,246 2,258 (63.8%) 6,246 2,258 (63.8%) Finance costs -Interest expense on bills payable (3,610) (5,687) 57.5% -Interest expense on bank and other (17,227) (21,609) 25.4% borrowings -Interest expen
Slide 13: Key Income Statement Summary
Key Income Statement Summary RMB’ Million FY2022 FY2023 YoY% Units delivered 9,904 8,667 (12.5) Revenue 4,026.6 3,455.5 (14.2) Gross Profit 197.1 60.7 (69.2) Other Income 122.9 201.7 64.1 Other Gains, Net 6.6 4.8 (27.3) SG&A (267.2) (292.1) 9.3 Impairment charge - (25.8) n.m. Operating Profit 59.4 (
Slide 14: Key Balance Sheet Highlights
Key Balance Sheet Highlights RMB’ Million As at 31 December 2022 As at 31 December 2023 Non-current Assets 627.1 602.1 Current Assets 1,189.1 989.7 Total Assets 1,816.2 1,591.8 Non-current Liabilities 332.8 326.9 Current Liabilities 1,187.2 1,066.6 Total Liabilities 1,520.1 1,393.5 EQUITY (NAV) 296.
Slide 15: Key Cashflow highlights
Key Cashflow highlights RMB’ Million FY2022 FY2023 Cash flow from operating activities before WC 132,906 53,839 Cash flow from operating activities 358,889 113,642 Cash flow from investing activities (62,642) (51,720) Cash flow from financing activities (316,670) (85,748) Net cash decrease (50,333)
Slide 16: Key Operational/Financial Ratios
Key Operational/Financial Ratios Profitability Ratios FY2022 FY2023 Gross Profit Margin 4.9% 1.8% Net Profit Margin 0.5% (2.7)% Adjusted EBITDA Margin 3.1% 1.3% Inventory Turnover Days 38.6 days 43.1 days Group Absorption Ratio 94.8% 82.2% Balance Sheet Ratios 31 December 2022 31 December 2023 Net W
Slide 17: Corporate Developments
iran tama AUTOMOTIVE Mi MO Corporate Developments
Slide 18: Corporate developments over the next 12 months
Corporate developments over the next 12 months Challenges Strategy • The Chinese economy grew 5.2% in 2023 but • Cautious with large investments and stringent with cost management consumer sentiment was plagued by • Rationalising supercar locations to reduce losses and working capital requirements d
Slide 19: Use of IPO Proceeds
Use of IPO Proceeds S$’ 000 Amount Allocated Amount Utilised as Balance as at at 27 February 2024 27 February 2024 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 20: Thank You
THANK YOU Website: www.tca-auto.com
Slide 21: About TCA
—_——_—_—_ — ABOUT TCA — ——
Slide 22: Key Brands and Locations
Key Brands and Locations Foshan Wuhan Shenzhen Guangzhou Shenzhen Five BMW Locations Guangzhou Wuhan Shenzhen Changsha Four McLaren Showrooms Guangzhou Changsha Foshan Three Genesis Showrooms 21
Slide 23: Dealership Model
Dealership Model Anchored by new automobile sales which is one of the multiple business segments ▪ 5 BMW locations ▪ Includes referrals for automobile ▪ 4 McLaren locations New financing, referrals for insurance and Automobile ▪ 3 Genesis locations Automobile Agency car registration agency services,
Trans-China Automotive Holdings — FY2023 Earnings Presentation on 6ix