China MeiDong Auto Holdings Limited
(Incorporated in the Cayman Islands with limited liabilities)
(Stock code: 1268.HK)
Announces 2021 Interim Results
Satisfactory Growth in Revenue and Profit along with Improvement in Operating Efficiency
* * *
Revenue Increased by 39.8% to RMB11,808.1 million
Profit for the Period Surged by 79.4% to RMB551.0 million
Inventory Turnover Days Reached Record Low of 8 days
Net Margin Reached Record High at 4.7%
Financial Highlights
|
|
For the six months ended 30 June
|
|
RMB million
|
2021
|
2020
|
Change
|
|
Revenue
|
11,808.1
|
8,447.9
|
+39.8%
|
|
Gross profit
|
1,273.6
|
819.1
|
+55.5%
|
|
Profit for the Period
|
551.0
|
307.2
|
+79.4%
|
|
Profit attributable to
equity shareholders of the Company
|
536.5
|
300.8
|
+78.4%
|
|
Basic earnings per share (RMB cents)
|
43.11
|
25.72
|
+67.6%
|
(30 August 2021 - Hong Kong) The fast-growing auto distributor focusing on high-potential 2nd to 4th tier cities market in the PRC, China MeiDong Auto Holdings Limited ("MeiDong Auto", together with its subsidiaries, the "Group", stock code: 1268.HK) is pleased to announce its interim results for the six months ended 30 June 2021 (the "Period").
Results Highlight
In the first half of 2021, China's economy continued to recover from the impact of the COVID-19. The passenger vehicle market also continued its growth momentum, with sales volume exceeding 10 million units, and sales volume of premium brands has particularly outperformed. During the Period, sales of premium brands reached a record high of nearly 1.658 million units, representing an increase of 41.5% year-on-year ("YoY"), or approximately 14.5 percentage points higher than the overall automobile market, despite operating under the backdrop of unfavorable factors such as the shortage of chips and the rising prices of raw materials. China's passenger vehicle market has still shown strong growth and the penetration rate of premium brand cars continued to increase steadily.
During the Period, the Group still maintained its growth and high operational efficiency despite the uncertain operating environment, as revenue reached approximately RMB 11,808.1 million (first half of 2020: approximately RMB 8,447.9 million), representing an increase of approximately 39.8% YoY. Driven by the strong momentum in the premium brand market, gross profit increased by approximately 55.5% YoY from approximately RMB819.1 million to approximately RMB 1,273.6 million. Overall gross profit margin also increased by 1.1 percentage points to approximately 10.8%. Coupled with the Group's efficient inventory management, high operational efficiency, and effective cost control initiatives, profit for the Period increased by 79.4% to approximately RMB551.0 million (first half of 2020: approximately RMB307.2 million). Profit margin for the Period also increased by 1.1 percentage points from approximately 3.6% to approximately 4.7%.
The Group also became more efficient as it grew. During the Period, cash flow from operations exceeded RMB 953.3 million, and ROE and ROA were maintained at high levels of 30.54% (Annualized) and 13.51% (Annualized), respectively. Inventory also hit record low of 8 days, representing a satisfactory improvement from 9 days at the beginning of the year, and 12 days at the mid-year of last year.
The board of the Company (the "Board") recommends an interim dividend of RMB0.1293 per ordinary share for the six months ended 30 June 2021 (first half of 2020: RMB0.1451 per ordinary share), with payout ratio standing at 30.0% (first half of 2020: payout ratio 60%).
New Passenger Vehicle Sales - Accounted for 89.3% of Total Revenue
During the Period, riding on the strong sales of premium brand cars and improving sales efficiency, revenue of new passenger vehicles sales amounted to approximately RMB10,544.1 million (first half of 2020: approximately RMB7,487.9 million), representing an increase of approximately 40.8% YoY. Premium brand cars remained as the major revenue source of the Group, accounting for 87.3% of total new passenger vehicles sales. BMW, Porsche, Lexus and Audi recorded sales of approximately RMB4,843.4 million, RMB2,090.4 million, RMB2,202.6 million and RMB75.0 million, accounting for approximately 45.9%, 19.8%, 20.9% and 0.7% of new passenger vehicles sales, respectively. In terms of sales volume, the Group sold 32,221 new passenger vehicles in total, representing an increase of 36.0% YoY in sales volume. BMW, Porsche, Lexus and Audi recorded sales volume of 13,996 units, 2,535 units, 6,193 units and 263 units, respectively.
After Sales Services - Accounted for 10.7% of Total Revenue
During the Period, driven by new store openings and same store growth, after-sales services recorded a steady growth, with revenue reaching approximately RMB1,264.0 million, representing an increase of 31.7% YoY (first half of 2020: approximately RMB959.9 million). Total number of vehicles served was 303,446, representing an increase of 33.2% YoY. Gross profit from after-sales services also increased by 28.3% YoY.
Current Network
The Group continued to implement its highly-effective premium brand focus strategy, and expanded its distribution network through new stores and mergers and acquisitions that are in line with its "Single City Single Store" strategy. In the first half of 2021, the Group opened 1 new store and acquired 2 new stores. As of 30 June 2021, the Group has 66 self-operated stores in provinces and cities such as Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu and Anhui including a joint venture operated by the Group.
Prospect
In the future, the Group will continue to improve its operational efficiency, optimize its revenue mix, and strictly manage its assets and liabilities as well as cash flow through efficient data management. The Group will also continue its prudent approach in gradually implementing its merger and acquisition strategy, which focuses on factors such as (1) familiar brands, (2) reasonable valuation, and (3) appropriate locations, so as to further expand its business scope, maintain sustainable growth and deliver fruitful returns to its investors.
- End -
About China MeiDong Auto Holdings Limited
China MeiDong Auto Holdings Limited is a fast-expanding auto distributor focusing on 2nd to 4th tier cities along with the provision of after-sales services. The Group mainly focuses on mid-end brands and mainstream premium brands, including Porsche, BMW, Lexus, Audi, BMW Mini, Toyota and Hyundai. As of 30 June 2021, the Group had 66 self-operated stores in provinces and cities such as Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu and Anhui in China.
This press release is issued by DLK Advisory Limited for and on behalf of China MeiDong Auto Holdings limited.
For further information, please contact:
DLK Advisory 金通策略
Tel: +852 2857 7101
Fax: +852 2857 7103
