Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — FY2021 Earnings Presentation
28 slides from Zhongsheng's earnings presentation, 2022
Slide 1: 2021 Annual Results
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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
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Slide 4: Achievements
Achievements New car sales volume was 528,154 units in 2021, increased by 5.5 % as New Car Sales compared to the same period of 2020. After-sales and Revenue from after-sales and accessories segment increased by 21.0%， to Accessories RMB 24.5billion. Value Added Income from value added services incr
Slide 5: Business Update
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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 31 December 2021, the total number of dealerships reached 412, covering 25 provinces and regi
Slide 7: Nationwide Network
Nationwide Network Liaoning(47) Heilongjiang(4) Mercedes-Benz（PV） Mercedes-Benz（PV） Mercedes-Benz（CV） LEXUS Jaguar Land Rover FAW-TOYOTA LEXUS Hebei(14) GZ-TOYOTA Audi BMW Our national network further focused on high-tier Porsche LEXUS Volvo FAW-TOYOTA cities and economically developed regions. BMW
Slide 8: Regions & Expansion
Regions & Expansion Continuously strengthen the leadership advantage of core brands. - In 2021, there were 14 new self-built dealerships, Regional Distribution 34 M&As and 9 closedowns. 。 Central Northeast 9% 14% Southwest North 15% 7% South East 25% 30% Newly Added Major Dealerships 2021 City Fosha
Slide 9: Operation Capability
Operation Capability Brand management and operation capability outperform the industry Mercedes BMW ◆ Beijing ◆ Nanjing 2021Xinyi Dealership Best aftersales in east region ◆ Changchun 2021Xinyi Dealership ◆ Nanjing Best aftersales in east region ◆ Jinan 2021Xinyi Dealership ◆ Chongqing ◆ Z横轴 Best af
Slide 10: Digital Management
Digital Management Strengthened digital management
Slide 11: Quality Service
Quality Service Improve service quality and build Zhongsheng brand.
Slide 12: Zungfu Acquisition
Zungfu Acquisition Strategic alliance with Zungfu China. new car sales volume 35% revenue 38% pretax profit 78% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% YOY growth rate in January 2022
Slide 13: New Car Sales
New Car Sales Core luxury brands continued to outperform the market. (units) New Car Sales Volume 600,000 +5.5% 500,609 528,154 500,000 455,705 412,017 400,000 341,319 300,000 200,000 100,000 0 2017 2018 2019 2020 2021 Luxury Brands Sales Volume Core Brand Growth (units) 310,000 +8.7% 299,304 30% 24
Slide 14: After-sales & Accessories
After-sales & Accessories Solid Growth in after-sales and accessories. Revenue from After-sales and Accessories (RMB million) +21.04% 30,000 14.6% 24,504 14.4% 25,000 14.4% 20,245 14.2% 14.0% 20,000 17,843 14.0% 11,594 14,514 13.6% 13.8% 15,000 13.6% 10,000 13.5% 13.4% 13.4% 13.2% 5,000 13.0% 0 12.8
Slide 15: 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 +20% +12.3% 4,400 4,017 4,000 3,528 3,600 3,347 3,150 3,200 2,885 2,800 2,404 2,400 2,000 1,789 1,600 1,200 800 400 0 2017 2018 2019 2020 2020（可比） 2
Slide 16: Pre-owned car sales
Pre-owned car sales Rapid growth in pre-owned car business, with optimized business structure. Pre-owned Car Self-owned Brands Retail Contribution Sales Volume Contribution （台） +30.2% (%） +6.2ppt (%） +10.2ppt 155,000 68% 67.2% 25% 139,413 67% 20.2% 135,000 66% 20% 65% 115,000 107,075 64% 15% 63% 95,
Slide 17: NEV Business
NEV Business Strategic development of NEV business. - NEV sales contribution continued to increase，sales volume of NEV models for existing brands increased by 184.2% YOY Heilongjiang Inner Mongolia Jilin Qingdao | 青岛 Beijing Liaoning 4S NEV Experience Center Tianjin 新能源销售服务体验中心 Hebei Shandong Shaanx
Slide 18: Financial Update
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Slide 19: Revenue Mix Analysis
Revenue Mix Analysis Revenue contribution of after sales continued to increase. Revenue by segment Revenue contribution by segment (RMB million) 150,000 125,527 142,466 2021 2020 +13.5% After-sales and Used car 100,000 After-sales and Used car Sales +21.0% Accessories Sales Accessories 4.6% 13.6% 1.
Slide 20: Gross Profit & Income Analysis
Gross Profit & Income Analysis GPM of new car sales increased significantly and the contribution of gross profit from the after sales market increased Gross profit/Margin of New Car Sales Gross profit/Margin of pre- （%) (RMB million) owned Car Sales (RMB million) 10,000 8.0% 600 489 6,197 6.0% 3,710
Slide 21: Expense Analysis
Expense Analysis The period expense was under effective control and the financial capability strengthened. Selling and distribution costs Administrative Expenses (RMB million) (RMB million) 4.09% 2,573 8,000 5.00% 2,600 1.52% 7,000 3.86% 1.51% 6,000 4.00% 1.50% 5,000 3.00% 2,400 2,239 4,000 1.48% 7,
Slide 22: Financial Position
Financial Position As of 31 December (RMB million) 2021 2020 Cash and cash equivalents, cash in transit 11,183.9 8,390.6 Inventories 797.1 1,425.9 Total Assets 11,190.0 9,090.1 Short-term bank loans, other borrowing 85,612.2 68,501.0 Long-term borrowings, other borrowings and convertible bonds 15,21
Slide 23: Cash Flow Analysis
Cash Flow Analysis Steady increase in operating cash flow (RMB million) 2021 2020 Net cash generated from operating activities 10,742 9,324 Net cash used in investing activities -9,282 -3,234 Net cash generated from financing activities -1,297 -3,964 Net cash generated from operating activities (RMB
Slide 24: Key Indicators
Key Indicators Continuous improvement in operating efficiency Inventory Turnover Days (days） 24 23.3 * Excluding the effect of consolidation of Zung Fu in 4Q 23 22 21.6 21 20.5 20 19 2020 2021 2021（LFL） 110% Absorption Rate of After Sales Service 108% 109% 106% 104% 102% 99% 104% 100% 104% 98% 96% 9
Slide 25: CAPEX Analysis
CAPEX Analysis Capital expenditure remained prudent EBITDA vs CAPEX (RMB million) 16,000 13,648 14,000 11,400 12,000 10,797 9,396 10,000 7,524 8,000 6,843 6,000 5,305 3,781 4,000 3,158 1,743 2,000 0 2017 2018 2019 2020 2021 CAPEX EBITDA
Slide 26: 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) (%) (%) 45,000 70.0% 1400.0% 40,719 40,000 60.8% 12.19 60.0% 1200.0% 35,000 52.4% 50.0% 1000.0% 30,000
Slide 27: Financial Path
Financial Path Equal emphasis on scale advantage and efficiency improvement; leading efficiency in the industry. (RMB million) Revenue vs ROE (%) 200,000 175,103 26% 148,348 150,000 23.4% 23.7% 24.9% 22.7% 107,735 124,043 24% 86,290 21.9% 100,000 50,000 22% 0 20% 2017 2018 2019 2020 2021 Revenue ROE
Slide 28: Thank You!!
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Zhongsheng Group Holdings — FY2021 Earnings Presentation on 6ix