Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — H1 2021 Earnings Presentation
27 slides from Zhongsheng's earnings presentation, 2021
Slide 1: Zhongsheng Group Interim Results
Zhongsheng Group Hee RaSH nipag GERERAS ZHONGSHENG GROUP HOLDINGS LIMITED COBB TES INTERIM 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
Zhongsheng Group Lifetime Partner “I FR RE HE OHSOERBIRAS ZHONGSHENG GROUP HOLDINGS LIMITED
Slide 4: Achievements
Achievements New Car New car sales volume was 275,570 units in 20211H, increased by Sales 39.7% as compared to the same period of 2020. After-sales and Revenue from after-sales and accessories segment increased by Accessories 34.4%, to RMB 11.3billion. Value Added Income from value added services in
Slide 5: Business Update
Zhongsheng Group Lifetime Partner “I FR RE HE OHSOERBIRAS ZHONGSHENG GROUP HOLDINGS LIMITED
Slide 6: Brand Mix and Dealerships
Brand Mix and Dealerships 「Brand plus Region」 Continuous focus on luxury brands and TOYOTA, expansions to first and second-tier and provincial capital cities, especially in southern and Eastern China. As of 30 June 2021, the total number of dealerships reached 386, covering 24 provinces and regions,
Slide 7: Nationwide Network
Nationwide Network Heilongjiang(5) Liaoning(47) Our national network further focused on high-tier cities Mercedes-Benz（PV） Mercedes-Benz（PV） Mercedes-Benz（CV） Audi and economically developed regions. Hebei(14) LEXUS FAW-TOYOTA Jaguar Land Rover LEXUS GZ-TOYOTA Audi Porsche BMW LEXUS Jilin(8) Volvo B
Slide 8: Regions & Expansion
Regions & Expansion Equal emphasis on both self-built and M&A, and continuously optimized the brand structure. -In the first half of 2021, there were 11 new self-built dealerships, 4 M&A and 2 closedowns. Regional Distribution Northeas Southwe t st and 15% Central North 21% 7% South 25% East 32% New
Slide 9: Operation Capability
Operation Capability Continuously improved management and operation capability has been widely recognized by all parties in the market. Mercedes Audi&Volvo ◆ Chengdu： ◆ Xinyang： Excellent dealers of large vehicle sales in Best sales performance award of FAW Mercedes Benz West in the first half of 20
Slide 10: Key Works
Key Works Enhanced brand management and consolidated customer base, comprehensively improved customer experience to increase customer stickiness and loyalty, and built Zhongsheng's diversified brand strength.
Slide 11: New Car Sales
New Car Sales Strong new car sales and luxury car sales growth. (unit) New Car Sales Volume 600,000 CAGR+13.6% 500,609 1H 500,000 455,705 412,017 400,000 341,319 +39.7% 300,753 275,570 300,000 197,188 200,000 100,000 0 2016 2017 2018 2019 2020 20201H 20211H Luxury Brands Sales Volume Mid-to-high-end
Slide 12: After-sales & Accessories
After-sales & Accessories Stable Growth in after-sales and accessories. Revenue from After-sales and Accessories (RMB million) 25,000 20.0% CAGR+22.0% 20,245 1H 20,000 14.5% 16.0% 17,843 13.6% 14,514 12.9% 11,594 9,140 13.5% 14.4% 15,000 13.4% +34.3% 12.0% 12.8% 11,302 10,000 8,415 8.0% 5,000 4.0% 0
Slide 13: Value Added Services
Value Added Services Car finance and used car businesses drove the growth of value-added service income. (RMB million) Income from Value Added Services 3,600 3,347 CAGR+25.2%，LFL+27.1% 3,150 1H 3,200 2,885 +39.3% 2,800 2,404 2,400 +19.9% 2,000 1,789 1,821 1,572 1,600 1,283 1,311 1,200 800 400 0 2016
Slide 14: Pre-owned car sales
Pre-owned car sales Rapid growth in pre-owned car business, with continuously optimized business structure. Pre-owned Car Self-owned Brands Luxury Brands Sales Volume Contribution Contribution （unit） +64.1% +3.4ppt +9.5ppt (%） (%） 70,000 55% 54.5% 44% 66,735 42.3% 65,000 54% 42% 60,000 40% 53% 55,00
Slide 15: NEV Business
NEV Business Tapped into NEV business. -The sales volume of NEV models of existing brands increased by 181% year-on-year in the first half of 2021. SALES | 销 售 AFTERSALES | 售 后 LARGEST GLOBAL AUTOMOTIVE DEALER GROUP BY MARKET CAP 按市值计算，全球最大的经销商集团 MoU signed | 战略合作备忘录已签署 STRONG PORTFOLIO | 强大的品牌组合 Be
Slide 16: Financial Update
Zhongsheng Group Lifetime Partner “I FR RE HE OHSOERBIRAS ZHONGSHENG GROUP HOLDINGS LIMITED
Slide 17: Revenue Mix Analysis
Revenue Mix Analysis The revenue structure further shift towards luxury brands, and contribution of post market continued to increase. Revenue by segment Revenue contribution by segment (RMB million) +45.7% 20201H 20211H 80,000 14.5%, After-sales Used Car and Sales 60,000 72,556 After-sales Accessor
Slide 18: Gross Profit & Income Analysis
Gross Profit & Income Analysis The GPM of new car sales increased in 20211H, and the contribution of gross profit from the post market continued to be reflected. Gross profit/Margin of New Car Sales Gross profit/Margin of pre- （%) (RMB million) owned Car Sales (%) (RMB million) 3,000 2,763 8.0% 300
Slide 19: Expense Analysis
Expense Analysis The period expense rate continued to decline and the advantage over financial capability was strengthened. Selling and distribution costs Administrative Expenses (RMB million) (RMB million) 3,600 3.94% 5.00% 1,126 3.97% 1,200 2.00% 3,200 2,800 4.00% 1,000 768 1.29% 1.50% 2,400 800 2
Slide 20: Financial Position
Financial Position Further optimized financial position. As of 31 As of 30 June December (RMB million) 2021 2020 Cash and cash equivalents, cash in transit 10,825.4 8,390.6 Inventories 8,677.9 9,090.1 Total Assets 69,916.8 68,501.0 Short-term bank loans, other borrowing 13,196.4 16,980.1 Long-term b
Slide 21: Cash Flow Analysis
Cash Flow Analysis Operating cash flow increased significantly. (RMB million) 20211H 20201H Net cash generated from operating activities 6,402 4,744 Net cash used in investing activities -1,984 -1,093 Net cash generated from financing activities -2,135 -1,536 Net cash generated from operating activi
Slide 22: Key Indicators
Key Indicators Continuous improvement in operating efficiency Luxury Brands Inventory Inventory Turnover Days Turnover Days (天） (天) 35 27 29.7 25.9 30 26 25 20.8 25 20 24 15 23 22 21.6 10 21 5 20 0 19 20201H 20211H 20201H 20211H Absorption Rate of After Sales Service 110% 105% 99% 106% 106% 100% 104
Slide 23: CAPEX Analysis
CAPEX Analysis Capital expenditure remained stable EBITDA vs CAPEX (RMB million) 12,000 10,797 10,000 9,396 8,000 7,524 6,843 6,731 6,000 5,305 4,775 4,675 3,781 4,000 3,158 2,599 1,743 1,566 2,000 865 0 2016 2017 2018 2019 2020 20201H 20211H CAPEX EBITDA
Slide 24: Gearing Analysis
Gearing Analysis The leverage ratio decreased significantly and the financial flexibility increased. Bank Loans and Total Equity Total Liabilities/Total Assets Interest Coverage Ratio (RMB million) (%) (%) 35,000 70.0% 1200.0% 11.29 30,727 60.76% 30,000 60.0% 26,882 56.09% 1000.0% 25,000 50.0% 800.0
Slide 25: Financial Path
Financial Path Equal emphasis on scale advantage and efficiency improvement. (RMB million) Revenue vs ROE (%) 200,000 23.4% 23.7% 21.9% 22.7% 30% 150,000 15.9% 148,348 24.3% 124,043 20.4% 20% 86,290 107,735 87,361 100,000 71,599 58,203 50,000 10% 0 0% 2016 2017 2018 2019 2020 20201H 20211H Revenue R
Slide 26: Q&A Session
Zhongsheng Group Lifetime Partner “I FR RE HE OHSOERBIRAS ZHONGSHENG GROUP HOLDINGS LIMITED
Slide 27: Thank You !
Zhongsheng Group Lifetime Partner “I FR RE HE OHSOERBIRAS ZHONGSHENG GROUP HOLDINGS LIMITED
Zhongsheng Group Holdings — H1 2021 Earnings Presentation on 6ix