China Harmony Auto Holding Limited · HKEX:3836
China Harmony Auto — FY2021 Earnings Presentation
25 slides from China Harmony Auto's earnings presentation, March 2022
Slide 1: 2021 Full Year Results Presentation
全年业绩演示材料 2021 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: Overview: Highlights of 2021 results
Business Overview丨Highlights of 2021 results Total Revenue RMB18.4 billion (incl. commission income) in 2021，up by 22.0% year on year Net Profit RMB757 million（excl. non-recurring items) in 2021, expanding by 49.6% year on year New cars sale volume 40,791 units in 2021, increasing by 11.5% from the
Slide 5: Overview: Brands portfolio
Business Overview丨Brands portfolio Operating 9 luxury brands And 5 ultra-luxury brands 5
Slide 6: Overview of sales network
Business Overview丨Overview of sales network As of 31 Dec 2021，a total number of 76 authorized outlets across 16 provinces in 40 cities Added 5 outlets in 2021, and proactively merged 4 outlets • 2 Ferrari: located in Nanjing and Qingdao • 2 Lexus: located in Cangzhou and Shenyang • 1 Lamborghini: lo
Slide 7: Network Expansion
Business Overview丨Network Expansion Ferrari Qingdao Ferrari Nanjing Lexus Cangzhou Lexus Shenyang Lamborghini Wenzhou 7
Slide 8: Outlets Distribution
Business Overview丨Outlets Distribution • Cover 16 provinces and 40 cities 8
Slide 9: Awards of our outlets in 2021
Business Overview丨Awards of our outlets in 2021 Excellent Award for coating in 2021 Award for Rolls Royce the best-selling competition in 2021 Zhengzhou Beijing Award for Rolls Royce best selling Specter in 2020 Excellent Award for providing user experience Xi’an Award for Rolls Royce best aftersale
Slide 10: NEV layout
Business Overview丨NEV layout NEV manufacturing NEV aftersales Financial Financial investment investment • Byton，a premium brand that • Navigating the new business model in the • Dangdang Cars Repair，an O2O focus on “Automation, world of NEV platform specializing in NEV Connectivity, Electrification,
Slide 11: New cars sales business
8 Business Overview丨New cars sales business: Growth engine is continuing in 2021 Historical New Car Sales Unit：car 50,000 CAGR+10% +11.5% 40,791 40,000 36,573 32,796 30,000 25,917 26,998 24,620 20,000 10,000 0 2016 2017 2018 2019 2020 2021 Unit：car Luxury Brands Unit：car Super Luxury Brands 45,000 3
Slide 12: Key brands' volume analysis
Business Overview丨Key brands’volume analysis The Group’s major luxury and super luxury brands grew on par with their growth in China Retail volume in China Harmony’s sales volume 846,237 (Incl. Mini) + 8.9% yoy + 11.4% yoy 30,935 702 + 137.2% yoy + 94.3% yoy 68 3,833 + 19.9% yoy + 126.9% yoy 270 6,8
Slide 13: Aftersales Service
Business Overview丨Aftersales Service: 8 Steady growth sustains Revenue from aftersales service A remarkable increase in repaired units Unit: RMB Million Unit: Car +27.9% 2,500 2,326 +17.7% 440,000 CAGR+11% 431,239 2,000 1,818 420,000 1,686 1,500 1,366 400,000 1,247 1,280 380,000 1,000 366,344 360,00
Slide 14: Value-added business
Business Overview丨Value-added business: 8 Auto financing to drive commission income growth Revenue from Value-added service Penetration of auto financing Unit: RMB Million 62.0% +9.3% pts CAGR+18.5% +22.9% 60.0% 59.8% 450 421 58.0% 400 342 56.0% 350 307 320 300 300 54.0% 250 52.0% 50.5% 200 180 50.0
Slide 15: Financial Analysis
Financial Analysis Financial performance Analysis over operating expenses and liability Overview of financials Analysis over key indicators 15
Slide 16: 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 New Cars Sales Aftersale Services 20,000 18,402 +22.0% 15,089 20,000 +21.1% 15,000 15,610 15,000 12,893 10,000 10,000 5,000
Slide 17: Cost management and debt analysis
Financial Analysis丨Cost management and debt analysis SG&A Expense Ratio Financial Expense Ratio Liability-To-Asset Ratio +0.3% pts 0.9% 0.9% +0.4% pts 6.5% 6.3% 6.0% -0.2% pts 39.3% 38.9% 0.7% 2019 2020 2021 2019 2020 2021 2020 2021 17
Slide 18: Summary of key financials
Financial Analysis丨Summary of key financials Breakdown of Gross Profit for 2021 Financial Leasing , Unit： RMB Million 2020 2021 Year-on-Year Change 2.6% New Cars Comprehensive Revenue (incl. Sales , 15,089 18,402 22.0% commission income) 37.9% Aftersales Gross Profit 1,299 1,751 34.8% Services, 59.5
Slide 19: Analysis on key indicators
Financial Analysis丨Analysis on key indicators Overall Inventory Days Inventory Days by brands Unit: Day Unit: Day 37 Luxury Brands Super Luxury Brands 32 71 -7 days 25 52 34 -6 days -22 days 30 30 24 2019 2020 2021 2019 2020 2021 Absorption Ratio Annualized ROE +3.1% pts 8.9% 82.2% +2.5% pts 80.1% 7
Slide 20: Industry Outlook
Development Strategies丨Industry Outlook In line with China’s development policies （Big consumption and “From virtual economy to real economy”） Rapid growth in next five years A huge market Consumption (with 1.4 billion upgrade population) Power of branding 20
Slide 21: 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 21
Slide 22: Focus on the core business
Development strategies丨Focus on the core business One Core Two Wings”：focus on the core business, and spin off NEV business Unlock the value Focus on the core business To seek independent through independent financing financing 22
Slide 23: 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 23
Slide 24: 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 25: Thank you!
Thank you! Hong Kong Investor Relation Office Email: [email protected] XY, HARMONY AUTO Ane
China Harmony Auto Holding — FY2021 Earnings Presentation on 6ix