China Harmony Auto Holding Limited · HKEX:3836
China Harmony Auto — H1 2023 Earnings Presentation
24 slides from China Harmony Auto's earnings presentation, 2023
Slide 1: 2023 Interim Results Presentation
2023 中期业绩演示材料 Interim 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: Business Overview: Highlights of 2023 interim results
Business Overview丨Highlights of 2023 interim results Total Revenue RMB 8.3 billion (incl. commission income) in 2023 1H ，increased by 2.3% compared with the corresponding period last year Net Profit RMB 208 million in 2023 1H, down by 32.5% compared with the corresponding period last year （excl. non
Slide 5: Business Overview: Brands portfolio
Business Overview丨Brands portfolio Operating 9 luxury brands And 5 ultra-luxury brands 5
Slide 6: Business Overview: Overview of sales network
Business Overview丨Overview of sales network As of 30 Jun 2023，a total number of 79 authorized outlets across 16 provinces in 40 cities Open 2 stores • 2 Bentley: located in Zhenghzhou and Xi’an 1 stores under construction: • 1 Lamborghini: located in Tianjin 6
Slide 7: Business Overview: Network Expansion
Business Overview丨Network Expansion Ferrari Zhengzhou Ferrari Xi’an 7
Slide 8: Business Overview: Outlets Distribution
Business Overview丨Outlets Distribution • Cover 16 provinces and 40 cities 8
Slide 9: Business Overview: Awards of our outlets
Business Overview丨Awards of our outlets in 2022 1H BMW South Region Dealer Excellence Awards for 1st Quarter 2023 Wuhan 2022 Outstanding Data Quality Award Nanchang BMW South Region Outstanding Key Account Manager for 1st Quarter 2023 2022 Best Global After Sales Service Award WuXi Outstanding Award
Slide 10: Business Overview: 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: Business Overview: 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 35,506 +2.2% 30,000 25,917 26,988 20,000 17,190 17,571 10,000 - 2017 2018 2019 2020 2021 2022 2022 1H 2023 1H Unit：car Luxury Brands Unit：car Ultra Luxury Brands +2.2% +2.9% 17,200 500 49
Slide 12: Business Overview: Key brands' volume analysis
Business Overview丨Key brands’volume analysis Retail volume in China Harmony’s sales volume 384,528 +5.76% yoy +3.07% yoy 13,492 (Incl. Mini) 70,544 -18.68% yoy -16.08% yoy 1,534 616 +41.61% yoy +20.56% yoy 129 1,861 -0.32% yoy -12.00% yoy 132 -10.72% yoy -9.52% yoy 38 658 12 Note: data source from B
Slide 13: Business Overview: Aftersales Service
8 Business Overview丨Aftersales Service: Revenue from aftersales service Repaired units Unit: RMB Million Unit: Car +23.0% +13.7% 2,500 230,000 2,326 224,054 2,000 1,937 220,000 1,818 1,686 1,500 1,366 210,000 1,280 1,231 1,001 1,000 200,000 197,112 500 190,000 - 180,000 2017 2018 2019 2020 2021 2022
Slide 14: Business Overview: Value-added business
8 Business Overview丨Value-added business: Revenue from value-added service Penetration of auto financing Unit: RMB Million +10.0% +10.5% pts 72.0% 70.7% 450 421 412 70.0% 400 68.0% 342 66.0% 350 327 307 300 64.0% 300 62.0% 250 60.2% 211 60.0% 192 200 58.0% 150 56.0% 100 54.0% 50 52.0% 0 50.0% 2017 2
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 Analysis: 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 10,000 +2.3% New Car Sales Aftersales Services 8,132 8,321 8,000 6,906 6,853 7,000 6,000 -0.8% 5,000 5,000 4,000 3,000 2,00
Slide 17: Financial Analysis: 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 +0.2% pts +2.7% +12.8% 41.4% 41.6% 520,000 70,000 502,598 64,303 500,000 65,000 489,542 480,000 60,000 57,030 460,000 55,000 440,000 50,000 420,000 45,000
Slide 18: Financial Analysis: Breakdown of Gross Profit
Financial Analysis丨Breakdown of Gross Profit Breakdown of Gross Profit for 2022 Breakdown of Gross Profit for 2023 Financia Financia leasing leasing, 4.4% New car sales, 4.8% 8.7% New car sales 32.2% Aftersales Aftersales service service, 63.0% 86.9% New car sales Aftersales service Financia leasing
Slide 19: Financial Analysis: 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 46 +14 Days +5 Days 36 +4 Days 32 34 30 31 2022 1H 2023 1H 2022 1H 2023 1H Absorption Ratio Annualized ROE (excluding the impairment of the major non-re
Slide 20: Development Strategies: 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 20
Slide 21: Development strategies: Focus on the core business
Development strategies丨Focus on the core business Steady development of luxury automobile brands Actively develop ultra-luxury automobile brands Vigorously develop new energy automobile brands Focus on the core business To seek independent financing 21
Slide 22: Development Strategies: 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 22
Slide 23: Development Strategies: 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 24: Thank you!
Thank you! Hong Kong Investor Relation Office Email: [email protected] XY, HARMONY AUTO Ane
China Harmony Auto Holding — H1 2023 Earnings Presentation on 6ix