Geely Automobile Holdings Limited · HKEX:175
Geely Automobile — H1 2014 Earnings Presentation
19 slides from Geely Automobile's earnings presentation, Aug 20, 2014
Slide 1: 2014 Interim Results
2014 Interim Results 20 August 2014
Slide 2: Important Notice
Important Notice The information contained herein is meant for presentation purposes only and may not be used and relied upon by any other party. It is not to be taken in substitution for the exercise of judgement. You shall be solely responsible for making your own independent investigation of the
Slide 3: Financial Summary
Financial Summary 6M to June (RMB m) 2014 2013 YoY change Sales volume (units) 187,296 263,544 -29% Turnover/Revenue 10,158 14,855 -32% Gross profit margin ratio* 20.3% 19.2% +6% Operating margin ratio** 14.4% 12.3% +17% Profit after tax 1,126 1,402 -20% Attributable profit 1,113 1,398 -20% Diluted
Slide 4: Results Highlights
Results Highlights • 1H2014 results below our expectations due to weaker exports sales and interruption to domestic sales activities caused by the reshuffle of our sales and distribution system in China • Net profit down only 20% to RMB1,113 million in 1H2014 due to effort to strengthen cost control
Slide 5: Positives
Positives • Stable product prices and lower component costs, resulting in better gross margin (19.2% in 1H2013 to 20.3% in 1H2014) • Selling and administrative expenses down 32% and 19% respectively, resulting in an improvement in operating margin ratio (12.3% in 1H2013 to 14.4% in 1H2014) • Stronge
Slide 6: Overall Sales Volume Breakdown
Overall Sales Volume Breakdown Model 2014 2013 YoY change (6M to June) EC7 64,046 86,103 -26% GC7/SC7/Vision 32,540 55,874 -42% Kingkong 30,657 26,326 +16% GX7/SX7 29,333 28,244 +4% Geely Panda 13,748 21,385 -36% Free Cruiser 9,114 19,507 -53% SC6 5,363 11,686 -54% SC3 1,457 7,315 -80% EC8 1,025 6,2
Slide 7: Domestic Sales Volume Breakdown
Domestic Sales Volume Breakdown Model 2014 2013 YoY change (6M to June) EC7 47,645 62,733 -24% GC7/SC7/Vision 31,122 54,054 -42% Kingkong 29,427 16,030 +84% GX7/SX7 22,067 26,066 -15% Geely Panda 11,281 15,387 -27% Free Cruiser 8,225 16,074 -49% SC3 1,457 7,315 -80% EC8 845 2,954 -71% Others 787 12,
Slide 8: Exports Sales Volume Breakdown
Exports Sales Volume Breakdown Model 2014 2013 YoY change (6M to June) EC7 16,401 23,370 -30% GX7 7,266 2,178 +234% SC6 4,576 9 +50744% Geely Panda 2,467 5,998 -59% GC7/SC7/Vision 1,418 1,820 -22% Kingkong 1,230 10,296 -88% Free Cruiser 889 3,433 -74% EC8 180 3,285 -95% Others 13 49 -73% Total 34,44
Slide 9: YTD Sales Performance
YTD Sales Performance (January – July 2014) Overall: 207,420 units, -30% YoY Domestic: 168,863 units -28% YoY Exports: 38,447 units -39% YoY Mid-Size Sedans (EC7+GC7+SC7+Vision) 104,892 units -35% YoY SUVs (GX7+SX7) 33,336 units +2% YoY 9
Slide 10: Consolidated Income Statement
Consolidated Income Statement 6M to June (RMB m) 2014 2013 YoY change Turnover/(Revenue) 10,158 14,855 -32% Gross profit 2,066 2,847 -27% Other Income 562 552 +2% Selling Expenses -557 -821 -32% Admin. Expenses -606 -747 -19% Share-based payments -31 -46 -32% Finance costs, net -3 -57 -95% Taxation
Slide 11: Net Profit down 20%
Net Profit down 20% • The earnings performance in 1H2014 was a result of: – 29% fall in overall sales volume – 3% decline in average ex-factory price – 31% fall in vehicle sales revenue – Higher effective tax rate (21.4% vs. 18.7%) but partly offset by: – Stable subsidy income – Improved gross margi
Slide 12: Profitability
Profitability 25.0% 7.0% 6.0% 20.0% 5.0% 15.0% 4.0% 10.0% 3.0% gross margin selling expenses % T/O 2.0% operating margin 5.0% administrative expenses % T/O 1.0% 0.0% 0.0% 2008 2009 2010 2011 2012 2013 1H2014 2008 2009 2010 2011 2012 2013 1H2014 12
Slide 13: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (RMB m) 30 June 2014 31 Dec 2013 YoY change Non-current assets 10,873 11,348 -4% Inventories 1,878 1,784 +5% Trade/other receivables 11,758 14,785 -20% Total cash/bank balance 6,440 5,583 +15% Trade/other payables 13,222 16,075 -18% Short-term borrowings
Slide 14: Financial Analysis
Financial Analysis 6M to June 2014 2013 YoY change Sales of vehicles (RMB m) 9,112 13,225 -31% Average unit price (RMB) 48,652 50,180 -3% Return on equity* 13.2% 20.0% -34% Gross margin ratio** 20.3% 19.2% +6% Operating margin ratio*** 14.4% 12.3% +17% Selling expenses (% of T/O) 5.5% 5.5% -1% Admin
Slide 15: New Products
New Products Xindihao GX9 EC9 15
Slide 16: New Products – Xindihao
New Products – Xindihao 2013 EC7 Xindihao Engine: 1.5L, 1.8L petro engines Engine: 1.3L Turbo engines; Transmissions: 5MT, CVT 1.5L petro engines Dimension: 4635/1789/1470 Transmissions: 6MT, CVT Wheelbase: 2650 Dimension: 4631/1789/1470 Power: 80/6000(Kw/rpm) (1.5L) Wheelbase: 2650 98/6000(Kw/rpm)
Slide 17: New Product - Xindihao
New Product - Xindihao • Enhanced safety & comfort • New turbo engines with larger power & better fuel efficiency • New 6-speed manual gearbox • NVH noise cancellation technology • Enhanced storage space • Bosch’s V9.0 ABS+EBD • HHC (Hill Hold Control) • ESC (Electronic Stability Control) • G-Netlin
Slide 18: Outlook
Outlook • Key challenges: rapid changes in economic and regulatory environment in China, fierce competition, increasingly demanding customer expectations, and political and social instability in major export markets • Positives: enhanced brand image, product quality and service quality, strong finan
Slide 19: www.geelyauto.com.hk
Ma GEELY www.geelyauto.com.hk a
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