EQS Newswire / 30/08/2022 / 21:07 UTC+8
China MeiDong Auto Holdings Limited
(Incorporated in the Cayman Islands with limited liabilities)
(Stock code: 1268.HK)
Announces 2022 Interim Results
Maintained High Operating Efficiency Despite Difficult Market Conditions
7 Newly-acquired Porsche Stores Showed Promising Synergies
Revenue Increased by 7.2% to RMB12,658.4 million
Gross Profit Increased by 4.8% to RMB1,334.2 million
Interim Dividend of RMB0.0808 per Share as Dividend Payout Maintained at 30.0%
Healthy Inventory Turnover, Balance Sheet and Cash Flow
(30 August 2022 – Hong Kong) The fast-growing auto distributor focusing on high-potential 2nd-to-4th-tier cities 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 2022 (the “Period”).
During the Period, amid the resurgence of COVID-19 pandemic as well as the increasingly challenging macro environment, China’s economy faced notable downward pressure, and automobile consumption was also severely disrupted. Coupled with the shortage in supply of certain brands, traditional premium brands were impacted to varying degrees, with less than satisfactory performances across production and sales volume. According to the data of the China Passenger Car Association, the retail sales volume of premium brand vehicles for the Period was 1.301 million units, representing a year-on-year drop (“yoy”) of 14%.
Despite the aforementioned difficulties, the Group was able to report a yoy growth in revenue, by leveraging its high operating efficiency as well as the additional contributions from the 7 newly-acquired Porsche 4S stores. Revenue for the Period was approximately RMB12,658.4 million (1H2021: approximately RMB11,808.1 million), representing an increase of 7.2%. The growth in revenue has also led to the increase in gross profit, from approximately RMB1,273.6 million last year to approximately RMB1,334.2 million this year. Gross profit margin remained largely stable, reporting a modest decrease of 0.3 percentage points to 10.5%. Nonetheless, as a result of the decreasing new car sales volume and margin due to COVID-19, together with the non-operating expenses incurred during the Period, profit for the Period decreased by 33.5% yoy to approximately RMB366.6 million (1H2021: approximately RMB551.0 million).
The Group continued to maintain its high operating efficiency, with inventory turnover days remained at a healthy level of 14 days. The Group also maintained a strong financial position in order to efficiently adapt to market changes and capture new market opportunities. As at 30 June 2022, the Group’s cash and cash equivalent was approximately RMB3,496.4 million (as at 31 December 2021: approximately RMB2,621.7 million), with net gearing ratio (loans and borrowings minus cash and cash equivalents then divided by total equity) reasonably increased to 13.3%.
In view of the healthy financial performance, the Board recommended an interim dividend of RMB0.0808 per ordinary share for the Period (1H2021: RMB0.1293 per share), with payout ratio being maintained at approximately 30.0% (1H2021: approximately 30.0%).
New Passenger Vehicle Sales – Accounted for 88.1% of Total Revenue
During the Period, the Group further expanded its store network upon the completion of acquisition of 7 Porsche stores. In a market that was full of challenges and uncertainties, new passenger vehicles sales still managed to report a steady growth of 5.8% yoy to approximately RMB11,152.2 million (1H2021: approximately RMB10,544.1 million). Sales of premium brand vehicles continued to be the major revenue source of the Group, accounting for approximately 87.2% of total new passenger vehicles sales. Sales volume of Porsche, BMW, Lexus and Audi during the Period was 20,469 units in aggregate.
After Sales Services – Accounted for 11.9% of Total Revenue
During the Period, despite the impact of COVID-19 pandemic, the after-sales service segment was able to deliver a strong growth, with revenue reaching approximately RMB1,506.2 million (1H2021: approximately RMB1,264.0 million), representing a significant increase of approximately 19.2% yoy. Total number of vehicles served was 345,137 units, representing an increase of approximately 13.7% yoy. Gross profit margin from after-sales services also recorded a notable enhancement of 4.0 percentage points to 49.8%, driving gross profit of after-sales service `to increase by approximately 29.6% yoy.
The Group continues to implement its highly effective premium brand focus and “Single City Single Store” strategy, and has consistently expanded its store network through new openings and mergers and acquisitions. In the first half of 2022, the Group acquired 7 new stores. As of 30 June 2022, the Group has 77 self-operated stores situated in provinces and cities such as Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu and Anhui, including a joint venture operated by the Group.
Looking into the second half of 2022, the uncertainties surrounding the COVID-19 pandemic, the shortages in the automobile supply chain, as well as geopolitical instability are expected to sustain. Following its usual prudent and highly0efficient data-driven approach, the Group will continue to proactively manage market challenges in an agile manner. The Group will also further advance the integration of the newly-acquired Porsche stores, as well as to further improve its operational efficiency, so that the newly-acquired Porsche stores can become a driving force of the Group’s business growth and efficiency enhancement. The Group will also carefully manage its balance sheet and cash flow, so that it can fully leverage its strong cash on hand and outstand execution capabilities, to fully grasp niche market opportunities and drive sustainable development of the Group, thus creating greater values for all stakeholders.
– End –
About China MeiDong Auto Holdings Limited (1268.HK)
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 brands and mainstream luxury brands, including Porsche, BMW, Lexus, Audi, BMW Mini, Toyota and Hyundai. As of 30 June 2022, the Group has 77 self-operated stores situated in provinces and cities such as Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu and Anhui, including a joint venture operated by the Group.
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
30/08/2022 Dissemination of a Financial Press Release, transmitted by EQS Group via SEAPRWire.com.
Media archive at www.todayir.com