Yongda Auto announced 2016 annual results to earn more than 62.3 for the whole year

(Hong Kong? March 2016) China Yongda Automobiles Services Holdings Limited ("Yongda Auto" or "Company"), China's leading passenger car dealer and integrated service provider The subsidiary "Group", stock code: 03669.HK) announced the annual results for the year ended December 31, 2016 ("Year").

Yongda Motors achieved good growth during the year. Comprehensive income and consolidated gross profit (including financial and insurance agency services income) recorded RMB 43.739 billion and RMB 4.512 billion, respectively, representing an increase of 21.2% and 30.8% over the same period last year; including financial and The consolidated gross profit margin of insurance agency services income was 10.31%, an increase of 0.75 percentage points over the same period in 2015. During the year, the Group's net profit and net profit attributable to owners were RMB 908 million and RMB 851 million, respectively, representing a significant increase of 60.0% and 62.3% respectively. Earnings per share were RMB 0.58, up RMB 0.23 year-on-year. The Board of Directors proposes to distribute a 2016 final dividend of HK$0.19 per share (approximately RMB0.17) (2015: RMB0.105 per share).

Mr. Zhang De'an, Chairman of the Board of Directors of Yongda Automobile, said: “In 2016, the sales volume of passenger cars in China showed a high growth. In addition, the country continued to introduce preferential policies related to car purchase. The revenue and profit of Yongda Auto's business in 2016 were realized. Rapid and steady growth. Benefiting from the continuation of the national preferential car purchase policy, and the cyclical adjustment of the passenger car market in the past few years, the profitability of dealers will continue to improve. The Group is deepening the promotion of new car sales and automotive aftermarket business. , taking the lead in arranging new energy vehicle business, actively exploring TV sales, informationization and Internet e-commerce, and continuously optimizing the network. As new car gross margins tend to mature market and remain stable, extended services such as after-sales, used cars and financial insurance Rapid growth is beginning to show a contribution to profitability."

Business review

In 2016, the Group continued to optimize the construction and layout of its outlets, upgraded the network structure authorized by the factory, and actively promoted the development of its own outlets. At the same time, the Group completed the acquisition and acquisition of 18 4S stores during the year. As of December 31, 2016, the Group has opened 271 outlets and has been authorized to open, with outlets in 4 municipalities in China and 60 cities in 20 provinces.

New car sales grow rapidly and steadily

By strengthening the comprehensive management of new car sales quality, the Group quickly improved the comprehensive profitability of bicycle sales, ensured the rapid growth of new car gross profit, and in-depth effective integration and sharing of resources within the Group. New car sales achieved rapid and steady growth during the year, up 26.5% from the same period last year to 147,300. In 2016, the revenue from sales of new vehicles for the passenger vehicle sales and service segment was RMB 37.304 billion, an increase of 19.4% over the same period last year. During the year, the gross profit margin of the new car sales and service segment increased from 3.06% in the same period last year to 3.10%.

Fast after-sales service

The Group continues to improve through internal management optimization, customer recruitment and cost control. During the year, the Group's after-sales service including maintenance services and automotive extension products and services achieved healthy and rapid growth. After-sales service revenue reached RMB 5.446 billion, a year-on-year increase of 31.7%. In 2016, the Group's after-sales service gross margin was 45.72%, a slight increase compared with 45.56% in the same period of 2015.

Second-hand car business is growing at a high speed

In 2016, the Group sold 25,384 used cars, up 41.0% from 18,002 in the same period of 2015. The income from used car agency services reached RMB 129 million, an increase of 42.1% from RMB 91.04 million in the same period last year. Drawing on the excellent experience of mature markets, the Group has clarified the development direction of the business-to-customer (B2C) retail business, which will effectively promote the growth of high-value-added products such as finance, insurance and extended warranty of used cars, and promote the growth of after-sales business and replacement business. , to do customer relationship management more efficiently, and form a complete business closed loop. At present, Yongda Automobile has built 103 second-hand car retail outlets nationwide, including 16 OEM brand certification outlets, 71 4S store sales outlets and 16 Yongda used car malls.

Auto finance performance is high

The Group steadily promoted the integration of industry and finance, and insighted the industrial needs from a financial perspective. Financial services penetrated deeply into the depth of the automotive industry and produced significant synergies. During the year, the gross profit contribution of the financial and insurance business has increased from 15.2% in 2015 to 17.9%, which has driven the rapid growth of the Group's performance. The Group's financial insurance agency services revenue was RMB 712 million, an increase of 64.7% over the same period last year. Among them, financial agency services revenue was RMB 423 million, up 76.0% year-on-year; insurance agency service revenue increased by 50.6% to RMB 289 million.

In terms of self-operated business, the Group obtained the business license for the national network small loan in June 2016. At the same time, the Group focused on exploring new marketing tools. The newly added financial leasing interest-earning assets amounted to RMB 2.232 billion during the year, a sharp increase of 53.1% year-on-year and net profit of RMB 53.42 million, representing a year-on-year increase of 15.5%.

Car operating lease continues to grow

The Group's revenue from auto operating lease services in 2016 increased by 10.2% year-on-year to RMB 364 million. The Group seized the opportunity and made full progress in all aspects of its business. The Group has successively obtained long-term leasing business of major customers such as State Grid, FAW Audi, Jaguar Land Rover and Qoros Auto; it has become a designated service provider for many large-scale conferences, sports events and cultural events with international influence. The Group has also become a designated unit for the social rental of official vehicles and has launched a government car civil service “car butler” service project, which will further strengthen the Group's leading position in the field of car rental services in Shanghai.

Rapid development of new energy automobile industry

During the year, the Group actively grasped the opportunities brought about by the development of new energy vehicles, and focused on the development of new energy vehicle sales services, corporate official vehicle oil conversion, charging pile network. During the year, the Group has successively obtained domestic mainstream new energy vehicle brand agents such as SAIC New Energy, Beiqi New Energy, Jianghuai New Energy, and Tengshi New Energy. The first batch of six new energy vehicle experience centers have been completed and opened; meanwhile, the Group's official vehicles The oil-to-electricity work and self-built charging piles have been rapidly promoted, and the electric pile management platform has been officially put into operation, laying a solid foundation for the Group's comprehensive development of the new energy automobile industry in the future.

Informatization and Internet E-commerce

The Group continues to build online and offline (O2O) omni-channel to achieve an overall improvement in operational efficiency and improve customer service experience. During the year, the Group initially completed the construction of customer master data, and initially realized the actual analysis of new data, such as new cars, after-sales, used cars, and financial services. At the same time, Yongda Auto's member service platform “Da Renhui” has exceeded 100,000 members for half a year, which has increased the user's stickiness. In terms of external cooperation, the Group continued to strengthen its cooperation with vertical and platform e-commerce companies such as Ali Auto, Meituan Review, Easy Car, and Auto House, and formed stable online and offline sales in new car sales and after-sales maintenance. Integration. The Group has launched a new three-year comprehensive informationization plan, which will drive the upgrading and transformation of existing industries with data, realize the digitalization of the operation management process, and fully channel customer service.

Outlook and strategy

With the promotion of China's urbanization process and vehicle upgrade consumption, China's auto market is expected to maintain a stable growth trend, especially in the luxury and ultra-luxury car market, which is expected to maintain a relatively fast growth rate. China's auto retail service market is experiencing a period of mergers and acquisitions integration, and it is expected that 4S stores will remain the mainstream of physical sales channels in the future. Therefore, the Group will continue to lay out the domestic automobile sales and service network, expand its mainstream luxury brand outlets through self-built and mergers and acquisitions, and strive to form a nationwide network structure with both scale and quality. The Group will focus on and actively promote the network expansion of first-line luxury brands such as BMW, Audi and Porsche. In particular, the BMW brand will usher in a new round of upgrades in the launch of new products and heavyweight products in 2017. BMW manufacturers also adjust. The dealer rebate policy will definitely inject strong momentum into the Group's business improvement and cost reduction. Through continuous digital construction, the Group will realize the refined management and standardization operation of the traditional business of automobile sales services, and also provide a strong foundation support and expansion platform for the business sector of auto finance, used cars and car rental. . The Group also regards the used car business as the focus of its recent development. It is committed to developing the retail business of used cars and continues to build Yongda certified used car brands in the retail market. In addition, the Group will further expand its financial business, use innovation as a driving force, broaden its channel network, continuously optimize and upgrade its products and services, further enhance the synergy between financial services and the automotive industry, and actively expand its agency business while being robust. Develop self-operated business to meet the diverse needs of users. The Group will also make full use of the favorable changes in the industry policy environment and actively expand the industries with independent development potential and economies of scale, such as independent after-sales maintenance, parallel import business, self-care products business, and car rental business. We will continue to carry out multi-level and all-round cooperation attempts with all sectors of society and different industries to achieve strong cooperation and complementary advantages, and jointly build an automotive industry ecosystem. The Group will continue to promote Yongda Auto Capital Market and leverage the capital market platform. It has become a powerful booster for the Group to achieve the above development strategy, further consolidating Yongda's leading position in the automotive industry and ensuring the profitability and sustainable development of the company.

Mr. Zhang Dean, Chairman of the Board of Directors of Yongda Automobile, concluded: “By benefiting from the promotion of national industrial consumption policies and the more harmonious communication between automobile manufacturers and dealers, the overall automobile market has a significant warming effect. As always, we will inherit The concept of “customer-oriented” fully promotes the spirit of craftsmanship, continues to deepen the automotive industry, and becomes “the expert of car service around you.” At the same time, we will focus on and actively promote the network expansion of first-line luxury brands such as BMW, Audi and Porsche; It will continue to carry out strategic cooperation attempts with the leaders of all sectors of society and various industries. For the purpose of cooperation, sharing and win-win, innovation will never stop, and deeper cooperation at the capital level will be carried out when the time is ripe, thus further consolidating Yongda. The leading position of the automobile in the industry, to achieve a win-win situation for shareholders, employees, customers and society."