China Harmony Auto Holding Limited · HKEX:3836
China Harmony Auto — FY2023 Earnings Presentation
27 slides from China Harmony Auto's earnings presentation, Nov 5, 2024
Slide 1: 2023 Full Year Results Presentation
2023 全年业绩演示材料 Full Year Results Presentation 中国和谐汽车控股有限公司 China Harmony Auto Holding Ltd. 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 2023 Annual Results
Business Overview丨Highlights of 2023 Annual Results Total revenue RMB 17.1 billion (incl. commission income) in 2023, up by 1.7% year on year Net profit RMB 170 million (excl. non-recurring items) in 2023 New cars sale volume 38,475 units in 2023, up by 8.4% from the same period last year, among whi
Slide 5: Mainland China Brand Portfolio
Business Overview丨Mainland China Brand Portfolio Operating 9 luxury brands And 5 ultra-luxury brands 5
Slide 6: Hong Kong and Overseas Brand Portfolio
Business Overview丨Hong Kong and Overseas Brand Portfolio 6
Slide 7: Overview of Sales Network
Business Overview丨Overview of Sales Network As of 31 December 2023, a total number of 80 authorized outlets across 17 provinces in 40 cities, Hong Kong, Thailand and Cambodia Closed 8 stores and newly opened 11 stores Expanded to the international new energy market and newly opened 7 overseas outlet
Slide 8: New Outlets in Mainland China
Business Overview丨New Outlets in Mainland China Ferrari Zhengzhou Ferrari Xi'an Lamborghini Tianjin MHero Experience Center Zhengzhou 8
Slide 9: New Outlets in Hong Kong, China and Overseas
Business Overview丨New outlets in Hong Kong, China and Overseas BYD Sha Tin Showroom Hong Kong, China BYD Sai Kung Showroom Hong Kong, China BYD Tseung Kwan O Showroom Hong Kong, China AION Future Park Showroom Thailand 9
Slide 10: Outlets Distribution 17 provinces in 40 cities
Business Overview丨Outlets Distribution 17 provinces in 40 cities 8
Slide 11: Awards of Outlets in 2023
Business Overview丨Awards of Outlets in 2023 Zhengzhou 2023 BMW Genuine Accessories Excellence Dealer Vataple Wuhan 2023 Bentley Dealer of Excellence The best case of dealer marketing for the new BMW 7 Huazheng Zhengzhou Series in 2023 Zhengdebao Suzhou Best Team Management in Ferrari Greater China 2
Slide 12: Layout of NEV Business
Business Overview丨Layout of NEV Business 香港 Hong Kong Thailand 柬埔寨 Philippines Cambodia • Lay out the new energy vehicle industry and explore new 新加坡 Singapore business models Note: Blue represents regions where stores have been built as of December 31, 2023, • Vigorously develop overseas markets fo
Slide 13: New Car Sales Business
8 Business Overview丨New Car Sales Business Historical New Car Sales Unit: car 45,000 +8.4% 40,791 40,000 38,475 36,573 35,506 35,000 32,796 30,000 26,988 25,917 25,000 20,000 15,000 10,000 5,000 - 2017 2018 2019 2020 2021 2022 2023 Unit: car Luxury Brands Unit: car Ultra Luxury Brands 38,000 37,592
Slide 14: Volume Analysis of Key Brands
Business Overview丨Volume Analysis of Key Brands Retail volume in China Harmony’s sales volume 824,932 28,465 +3.2% yoy +6.4% yoy (Incl. Mini) 181,411 -0.8% yoy +10.1% yoy 4,266 1,490 +21.5% yoy -8.0% yoy 219 3,006 -26.8% yoy -18.5% yoy 251 1,600 +6.1% yoy -10.2% yoy 79 14 Note: as of 31 Dec 2023; Un
Slide 15: After-sales and Quality Services
8 Business Overview丨After-sales and Quality Services Revenue from aftersales service Repaired units Unit: RMB Million Unit: Car 2,500 +19.8% +14.9% 2,326 2,320 500,000 452,441 450,000 2,000 1,937 393,852 1,818 400,000 1,686 350,000 1,500 1,366 1,280 300,000 250,000 1,000 200,000 150,000 500 100,000
Slide 16: Value-added services business
8 Business Overview丨Value-added services business: Auto finance and other value-added services drive growth Revenue from value-added service Penetration of auto financing Unit: RMB Million 80.0% +14.0pts 74.8% 70.0% +4.9% 60.8% 500 60.0% 450 421 432 412 50.0% 400 320 342 350 307 300 40.0% 300 250 30
Slide 17: Financial Analysis
Financial Analysis Financial Performance Cost Management and Debt Analysis Breakdown of Gross Profit Analysis on Key Indicators 17
Slide 18: 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 -0.8% 16,000 20,000 +1.7% 14,000 14,325 14,209 New car sales 16,734 17,011 12,000 15,000 10,000 After-sales service 8,000 1
Slide 19: Cost Management and Debt Analysis
Financial Analysis丨Cost Management and Debt Analysis SG&A Expense Ratio Financial Expense Ratio Liability-To-Asset Ratio 8.00% -0.3pts 0.90% 7.50% 7.20% +0.1pts 0.80% 7.00% 0.80% 60.00% 6.30% 0.70% 0.70% +3.5pts 0.70% 6.00% 50.00% 47.70% 44.20% 0.60% 5.00% 40.00% 0.50% 4.00% 0.40% 30.00% 3.00% 0.30%
Slide 20: Breakdown of Gross Profit
Financial Analysis丨Breakdown of Gross Profit Breakdown of Gross Profit for 2023 Breakdown of Gross Profit for 2022 New car sales 3.3% Finance lease Finance lease 5.2% 5.6% New car sales… After-sales service 91.5% After-sales service 72.7% 20
Slide 21: Analysis on Key Indicators
Financial Analysis丨Analysis on Key Indicators Inventory Turnover Days Inventory Turnover Days by brands Unit: Day Unit: Day Luxury brand Ultra luxury brand 40 +3 Days 35 -1 Days 35 32 41 +4 Days 40 30 31 35 25 20 15 10 5 - 2022 2023 2022 2023 Absorption Ratio Annualized ROE (excluding major non-recu
Slide 22: Industry Outlook
Development Strategies丨Industry Outlook According to the International Monetary Fund (IMF), China's economy is expected to continue its stable growth in 2024. This will contribute to boosting consumer Structural Growth confidence and providing a favorable development environment for the passenger ca
Slide 23: 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 23
Slide 24: Focus on the core business
Development strategies丨Focus on the core business Steadily developing the domestic luxury car market and vigorously expanding the overseas NEV market 24
Slide 25: 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 core Rolls Royce regions • Expand the coverage into areas with great potentials 25
Slide 26: 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 27: Thank you!
HARMONY AUTO Aaa Thank you ! Hong Kong Investor Relation Office Email: hk@hexieauto.com
China Harmony Auto Holding — FY2023 Earnings Presentation on 6ix