huayu automotive systems co., ltd. · huayu automotive systems co., ltd. 2014 financial analysis...
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HUAYU Automotive Systems Co., Ltd.
2014 Financial Analysis Report
March 27th, 2015
1
目录-待修改
CONTENTBusiness Sectors
Consolidated Financial
Statements Analysis
Key Financial Indicators
Sales
Net profit
Balance Sheet Items
Cash Flow
Profit Distribution
Accumulated Financial
Statements Analysis
Key Financial Indicators
Sales
Return On Sales (ROS)
Balance Sheet Items
Investment
Taxation
Social Contribution
2
Consolidated Subsidiaries
Joint Ventures and Associate
Companies accounted in Equity
Method
Yanfeng(Excluding Yanfeng
Electronics)SKOITO Yanfeng KSS
Yanfeng JCI HASC-CSA Yanfeng PO
HASCO - CP STASS
STICEC Shanghai Edscha
SSDT
SUATIT SDS YAPP
Shanghai Automotive Powder
Metallurgy
ContiTech Fluid
ShanghaiSTES
SABCShanghai XingSheng
GasketSBTS
China Spring SPS FMSB
SSB ZFLSCN FMSCM
SABS KSSP
XINGFU PHP
STEC
Shanghai Brose Lear-STEC
Valeo Electric Motors &
Wiper Systems
Inteva Door
Systems
Inteva Automotive
Parts
HASCO E - DRIVE SVAES Yanfeng Electronics
SCAAC KPSNC SMMP
SSFC HDTAFC Shanghai Aichi
HASCO SH KS ALU
Business Sectors
3
Former
Interior &
Exterior
Trimming Sector
Functional
Parts,
General
Assembly
Sector
Hot Worked Parts
Sector
Current
Interior &
Exterior
Trimming
Metal Forming &
Dies
Functional Parts
Electrics &
Electronic
Parts
Hot Worked
Parts
ONE 2014 Consolidated
Financial Statements Analysis
4
2014 2013Increases in
percentage (%)
Sales (RMB in 100 millions) 739.73 697.55 6.05
Net Profit Attributable to Shareholders of the
Company (RMB in 100 millions)44.56 34.48 29.23
Basic Earnings Per Share (RMB) 1.725 1.335 29.23
Basic Earnings Per Share after Deducting
Non-Recurring Profit or Loss (RMB)1.572 1.258 24.99
Net Cash from Operating Activities Per Share
(RMB)2.36 2.64 -10.65
Return on Net Assets (Weighted) (%) 20.76 17.97 increases by 2.79%
Notes:
Excluding non-comparable factor arising from Yanfeng’s acquisition, sales increase by 10.65%, while net profit attributable to
shareholders of the company increases by 9.27%.
Return on net asset (weighted) increases by 2.79%, due to the fact that the net profit attributable to shareholders of the
company increases by 29.23%.
Key Financial Indicators I
5
Key Financial Indicators II
2014 2013Increases in
percentage (%)
Total Assets (RMB in 100 millions) 632.42 547.26 15.56
Equity (RMB in 100 millions) 285.17 235.49 21.10
Shareholder’s Equity Attributable to Shareholders
of the Company (RMB in 100 millions)236.19 187.73 25.81
Net Asset Per Share (RMB) 9.14 7.27 25.81
Note:
Shareholder’s equity attributable to shareholders of the company as of 2013 was RMB18.773 billion, while it reaches RMB23.619
billion in 2014. The increase primarily reflects favorable changes in net profit of RMB4.456 billion and favorable changes in other
comprehensive income and etc. of RMB1.761 billion; partially offset by dividend declared of RMB1.214 billion and subsidiaries’
bonus and welfare fund of RMB 157 million.
6
460.0
70.3
108.5
52.7 16.0 -10.0
697.5
517.1
72.6
115.9
25.2 19.4 -10.5
739.7
12.4%
3.3%
6.9%
-52.2%
21.0%
-4.7%
6.1%
-65%
-55%
-45%
-35%
-25%
-15%
-5%
5%
15%
25%
35%
-100
0
100
200
300
400
500
600
700
800
Interior & ExteriorTrimming
Metal Forming &Dies
Functional Parts Electric &Electronics Parts
Hot Worked Parts Parent Companyand Eliminations
Total
2013 2014 Growth Rate
Sales Analysis-By Business Sectors
Consolidated sales have increased by 6.1%. Most sectors enjoy steady growths, except Electrics & Electronic Parts sector,
Sales mostly generated from Interior & Exterior Trimming sector, which proves to be stable.
Note: This chart is prepared based on consolidated sales analysis. 7
RMB in 100 millions
228.3216.5
26.319.1 18.1 17.7 13.2 13.0 12.8 9.1
30.9%
29.3%
3.6% 2.6% 2.4%2.4% 1.8%
1.8%1.7% 1.2%
-20%
-10%
0%
10%
20%
30%
40%
0
50
100
150
200
250
Sales (RMB in 100 millions) Ratio (%)
Sales mainly come from automaker companies under SAIC, among which SVW accounts for 30.9% of
consolidated sales while SGM Group (including SGM, SGM (Shenyang) Norsom Motors, SGM Dong Yue Motors,
SGM Dong Yue Powertrain) amounts 29.3% of consolidated sales. Consolidated percentage of sales outside SAIC
is 28.8%.
Exports sales of 2014 reach RMB 3.45 billion, accounting for 4.5% of consolidated sales.
Sales from major customers in 2014
Sales Analysis-By Customers
8
Net Profit Analysis-Quarterly Trends
Note: 2013 data are retrospectively revised according to consolidated financial statements.
Net profit quarterly fluctuations from 2011 -2014 RMB in 100 millions
7.8 7.7 7.4 7.0 8.1 8.1 7.5 7.3 8.5 8.6 8.5 8.9
11.3 11.6 11.7
9.9
Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14
9
-20%
0%
20%
40%
60%
Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14
Year-On-Year Basis Quarter-On-Quarter Basis
34.5
+5.2 -0.2 -0.1 -8.7
-1.8 +0.2+2.2
+1.3 +0.6
+11.4 44.6
2013 GrossMargin
BusinessTaxes and
Levies
SellingExpense
G&A FinancialExpense
ImpairmentLosses of
Assets
InvestmentIncome
Others Income Tax Profit orLoss
Attributableto MinorityInterests
2014
Note: Data are selected from consolidated financial statement items and net profit attributable to shareholders of the company is employed in the
chart.
Net Profit Analysis-Income affecting factors
RMB in 100 millions
10
363.5
41.2
67.9
35.0
7.9
515.6
398.9
41.2
71.7
18.4 10.5
540.7
9.7%
0.0%
5.6%
-47.5%
31.9%
4.9%
-55%
-45%
-35%
-25%
-15%
-5%
5%
15%
25%
35%
0
100
200
300
400
500
600
Interior & ExteriorTrimming
Metal Forming &Dies
Functional Parts Electric &Electronics Parts
Hot Worked Parts Total
2013 2014 Growth Rate
Net Profit Analysis-Costs & Expenses: Raw Materials
Note: Data are selected from cost of goods sold information on consolidated income statement.
11
RMB in 100 millions
23.0
9.2 10.5
4.5 5.6
52.8
27.9
10.1 11.7
1.9
5.7
57.4 21.5%
9.1%
12.1%
-57.0%
2.6%
8.8%
-65%
-55%
-45%
-35%
-25%
-15%
-5%
5%
15%
25%
35%
0
10
20
30
40
50
60
70
Interior & ExteriorTrimming
Metal Froming &Dies
Functional Parts Electrics &Electronics Parts
Hot Worked Parts Total
2013 2014 Growth Rate
Net Profit Analysis-Costs & Expenses:
Manufacturing Expenses
Note: Data are selected from cost of goods sold information on consolidated income statement.
12
RMB in 100 millions
23.2
13.3
6.5 4.5 5.3
52.8
27.4
16.5
6.8 4.9 5.9
61.5
18.2%
23.9%
5.3%7.4%
11.1%
16.4%
0%
5%
10%
15%
20%
25%
30%
35%
0
10
20
30
40
50
60
70
Labor Costs R&D Administrative andOperatingExpenses
Amortization andDepreciation
Others Total
2013 2014 Growth Rate
Net Profit Analysis-Costs & Expenses: G&A
Note: Data are selected from consolidated income statement.
13
RMB in 100 millions
Net Profit Analysis-Profitability
14.2%
7.0%6.9%
16.6%
10.1%
5.8%
15.6%
9.3%
5.8%
23.7%
17.7%
5.2%
15.4%
12.5%
2.6%
15.6%
8.9%
6.3%
14.7%
8.1%
6.3%
16.9%
9.5%
6.8%
16.3%
9.9%
5.9%
17.2%
13.8%
2.9%
15.2%
20.7%
15.4%
9.3%
5.8%
2013 2014
Interior &
Exterior
Trimming
Metal Forming
& DiesFunctional
Parts
Electrics &
Electronics
Parts
Hot
Worked
Parts
Total
14
Interior & Exterior Trimming
Metal Forming & Dies
Functional Parts
Electrics &
Electronics Parts
Attributable to
Shareholders of
the Company
Attributable
to Minority
Interests Total
64,178
-4,756
118,714
38,813
0
0
6,169
8,541
-4,756
124,883
47,354
Hot Worked Parts
Total
Notes:
1. Charts shown above is the analysisof investments in 2014.
2. Investment Income on JV and Associates is after tax income result, while others are pre-tax income including minority interest.
3. RMB2.3 billion of total Investment Income on JV and Associates is attributable to parent company, as it was RMB1.81 billion last
year. The amount has increased by 27.2%.
13,535 296 13,831
230,483 15,007 245,490
64,178
RMB in 10,000
Functional
Parts
50.9%
Electrics &
Electronics Parts
19.3%
Interior & Exterior
Trimming
26.1%
Hot Worked Parts
5.6%
Metal Forming & Dies
- 1.9%
Net Profit Analysis-Investment Income
15
89%
8%
1%
2%
Total:275,988
Investment
Income on
JV and
Associates
Disposal of
Long Term
Investments
Available-
for-Sale
Financial
assets
Other
Financial
Assets
Investment
Income
12.1
3.2
12.0
5.6
1.5 0.0
34.5
21.7
3.4
15.3
6.2
0.6 (2.7)
44.6 79.6%
8.5%
26.8%
10.1%
-59.6%
29.2%
-150%
-100%
-50%
0%
50%
100%
-10
0
10
20
30
40
50
Interior &Exterior
Trimming
Metal Forming &Dies
Functional Parts Electrics &Electronics Parts
Hot WorkedParts
Parent Companyand Eliminations
Total
2013 2014 Growth Rate
Net Profit Analysis-By Business Sectors
Notes:
1. Totals are consistent with financial statements results, while segment reporting results are reclassified according to the nature of business so as to
reflect their respective contributions to net profit.
2. Expenses and cash investment income of parent company are included in Parent Company and Eliminations. 16
Interior & Exterior Trimming sector contributes the most to net profit. Compared with the same period last year, the results of Interior &
Exterior Trimming, Metal Forming & Dies, Functional Parts, Electrics & Electronics Parts and Hot Worked Parts have increased by 79.6%,
8.5%, 26.8%, 10.1% and (59.6%), respectively.
RMB in 100 millions
107.9
38.8
150.9
78.9
117.7
39.8
170.5
92.0
9.1%
2.6%
13.0%
16.5%
0%
5%
10%
15%
20%
25%
30%
35%
0
20
40
60
80
100
120
140
160
180
Accounts Receivable Inventory Accounts Payable Fixed Assets
2013 2014 Growth Rate
Balance Sheet Items Analysis
Note: Data are selected from consolidated balance sheet.
17
RMB in 100 millions
68.2
-85.2
20.9
3.9
60.9
-3.0
-35.7
22.2
-10.6%
96.5%
-271.1%
471.0%
-500%
-400%
-300%
-200%
-100%
0%
100%
200%
300%
400%
500%
-100
-80
-60
-40
-20
0
20
40
60
80
Net cash from operatingactivities
Net cash from investingactivities
Net cash from financingactivities
Total
2013 2014 Change in Percentage
Cash Flows Analysis I
Note: Data are selected from consolidated statement of cash flows.
RMB in 100 millions
18
Cash Flows Analysis II-Parent Company Special Analysis
Item RMB in 10,000
Cash balance at Jan.1st 151,451
Inflows
Dividends received 221,161
Interest from bank savings 5,591
Interest income from entrusted loans 7,538
Investment income from financial products 5,931
Other income 10,413
Financing
Subtotal: 250,633
Outflows
Dividends paid 121,400
Payments on debts 101,131
Purchases of Common Stock 45,000
Land and Buildings 8,310
Net increases in entrusted loans 29,500
Net increases in financial products investments -45,000
Other 19,253
Subtotal 279,594
Cash balance at Dec. 31st 122,490
Cash inflows of 2014 mostly come
from dividends received from
invested companies.
Cash outflows of 2014 are mainly
used to pay off debts, interest
payments and dividends payments.
Total net cash outflow of the year is
RMB 0.29 billion; cash at the end of
year is RMB 1.225 billion.
19
2014 Profit Distribution
1 Company Net Profit per 2014 Financial Reports 2,320,919,087
2 Statutory Surplus Reserve =(1)*10% 232,091,909
3 Net Profit Available for distribution =(1)-(2) 2,088,827,179
4 Dividend to be declared 1,343,264,091
5 Dividend per share (DPS) =(4)/2.58 billion shares 0.520
6 Dividend payout ratio =(4)/(3) 64.31%
7 2014 Basic Earnings Per Share (EPS) 1.725
82014 Consolidated Net Profit Attributable to Shareholders
of the Company4,455,720,982
9 DPS / EPS =(5)/(7) 30.15%
10 Cash Dividends / Consolidated Net Profit =(4)/(8) 30.15%
RMBThe company paid an accumulated dividend of RMB5.57 billion from 2009-2014.
20
TWO 2014 Accumulated
Financial Statements Analysis
21
2014 2013Increases in
percentage (%)
Accumulated Sales (RMB in 100 millions) 1502.17 1324.81 13.39
Among which: Interior & Exterior Trimming 782.11 679.25 15.14
Metal Forming & Dies 79.20 70.94 11.64
Functional Parts 392.77 349.72 12.31
Electrics & Electronics Parts 173.34 160.35 8.10
Hot Worked Parts 74.76 64.53 15.84
Accumulated income (RMB in 100 millions) 102.70 96.80 6.10
Among which: Interior & Exterior Trimming 44.72 42.62 4.93
Metal Forming & Dies 4.69 4.42 6.12
Functional Parts 39.22 33.53 16.97
Electrics & Electronics Parts 11.52 12.95 -11.02
Hot Worked Parts 2.55 3.29 -22.35
Key Accumulated Financial Indicators
22
80
100
120
140
160
180
200
0
20
40
60
80
100
120
140
160
180
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
2013 China Vehicle Production Volume (Vehicles in 10,000)
2014 China Vehicle Production Volume (Vehicles in 10,000)
2013 Sales (RMB in 100 millions)
2014 Sales (RMB in 100 millions)
HASCO automotive parts sales are highly correlated to China vehicle market. Sales increase (13.4%) of the years is greater than
national vehicle production increase (13.2%).
Note: Data are selected from combined sales. China vehicle production volume information is selected from China Association of
Automobile Manufacturers published data.
Accumulated Sales Analysis-By Industry
23
SalesProduction
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2013 2014 2015 2016 2017 2018 2019
Increase in sales (%) Increase in production volume (%)
Accumulated Sales Analysis-Growth Tendency
From 2013 to 2019, HASCO’s compound annual growth rate on sales supporting domestic vehicle market is 9.3%, higher than
HASCO’s forecast on domestic vehicle market production volume growth (7.5%) over the same period.
HASCO’s sales growths are higher than market performance over the years.
24
0
500
1000
EU OEMs US OEMs Local OEMs Japan OEMs Korea OEMs
2013 2014 2019
Domestic Vehicle Sales- OEMS RMB in 100 millions
EU OEMs49%
US OEMs34%
Local OEMs11%
Japan OEMs
4%
Korea OEMs
2%
Other0.05%0%
0.00%
0%
EU OEMs47%
US OEMs34%
Local OEMs13%
Japan OEMs
4%
Korea OEMs
2%
Other0.05% 0%
0.00%
0%
EU OEMs44%
US OEMs33%
Local OEMs16%
Japan OEMs
5%
Korea OEMs
2%
Other0.11% 0%
0.00%
0%
Accumulated Sales Analysis-OEMs
From 2013 to 2019, HASCO’s production/sales
to domestic vehicle market maintains a steady
growth in various OEMs, having compound
annual growth rate ranging from 7 to 12%;
Local OEMs enjoys a highest growth of 15.66%,
driven by growths from SAIC,BAIC and GAGC.
25
2013 2014 2019
67.9%
5.3%
1.3%
25.5%
66.1%
4.3%
1.2%
28.4%
Domestic RPTSales
Export Sales Overseas Sales Domestic Non-RPT Sales
2013 2014
Accumulated Sales Analysis-By Customers
31.8%
36.2%
38.2%
47.8%
63.9%
In 2014, accumulated non-RPT market experienced
a growth spurt, and increased by 26.5%.
Note: This chart is prepared based on accumulated
sales analysis.
26
679.3
70.9
349.7
160.4
64.5
1324.8
782.1
79.2
392.8
173.3
74.8
1502.2
15.1%11.6%
12.3% 8.1%
15.8%
13.4%
-5%
5%
15%
25%
35%
45%
55%
65%
0
200
400
600
800
1000
1200
1400
1600
Interior & ExteriorTrimming
Metal Forming &Dies
Functional Parts Electrics &Electronics Parts
Hot Worked Parts Total
2013 2014 Increases in percentage (%)
Accumulated Sales Analysis-Business Sectors
Accumulated sales increases by 13.4%. Interior & Exterior Trimming and Hot Worked Parts sectors enjoy higher growths than average.
Note: This chart is prepared based on accumulated sales analysis.
RMB in 100 millions
27
0
5
10
15
20
25
30
35
40
45
50
0
50
100
150
200
250
300
350
400
450
Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 Q4'14
Sales Profit
-20%
0%
20%
40%
60%
Q3'11 Q3'12 Q3'13 Q3'14
Sales Profit
-20%
0%
20%
40%
60%
Q3'11 Q3'12 Q3'13 Q3'14
Sales Profit
Accumulated sales and profit analysis-
Quarterly Trends
Year-On-Year Basis(%) Quarter-On-Quarter Basis(%)
28
102.7
44.6
-15.5
-38.7
-1.3 -2.7
Combined Profit Income Tax Net ProfitAttributable to
Minority Interests
JC and Associatespension plans
Company Expenses Cosolidated NetProfit
Bridge Analysis-
Accumulated Profit to Consolidated Net Profit
Notes:
1. Subsidiaries’ income tax rates ranges from 0 to 25%. Many of the subsidiaries qualify High-Technology Enterprise tax
benefit, which result in a lower tax rate of 15%. Investment income under equity method is exempt from income tax. Taking
these two facts into consideration, the actual tax rate is 15.09%
2. HASCO acquired 50% of Yanfeng shares in 2013, which results a higher average shareholding ratio of 55.62% as compared
to 42.95% of last year.
RMB in 100 millions
29
6.8%
6.5%
9.8% 8.6%
5.4%
7.7%
6.2%
6.8%
10.3%
7.5%
3.4%
7.4%
Interior &Exterior Trimming
Metal Forming& Dies
FunctionalParts
Electrics &Electronics Parts
Hot WorkedParts
Total
2013 2014
Combined Return on Sales Analysis
Accumulated return on sales decreases slightly in 2014.
Note: Data are accumulated from the results of 25 companies.
30
27.2 24.4
8.9 6.1
10.8
77.3
35.1
26.6
9.9
7.7
14.2
93.5
28.9%
8.9%
11.3%
27.1%
31.9%
20.9%
0%
10%
20%
30%
40%
50%
60%
0
10
20
30
40
50
60
70
80
90
100
Labor Costs R&D Administrative andOperating Costs
Amortization andDepreciation
Other Total
2013 2014 Growth Rate
G&A Analysis
Note: Data are selected from accumulated income statement.
RMB in 100 millions
31
156.9
78.7
228.1
157.6
186.7
84.6
257.5
184.7
18.9%
7.5%
12.9%
17.2%
0%
5%
10%
15%
20%
25%
30%
35%
0
50
100
150
200
250
300
Account Receivables Inventory Account Payables Fixed Assets
2013 2014 Growth Rate
Balance Sheet Item Analysis
Notes:
1. Data are selected from accumulated statement of companies.
2. Construction in progress is included Fixed Assets section.
RMB in 100 millions
32
Accumulated Investment Analysis I
# Project
2014 #
of
Projects
2014 Actual
Investment
(RMB in 100
millions)
2014 Budget
Completion
Percentage
(%)
2015 # of
Projects
2015 Budget
(RMB in 100
millions)
Total 436 66.23 109.63% 416 73.41
I Subtotal of Project Investments 436 58.04 106.29% 416 60.93
1 Parent Company 0 0.00 - 0 0.00
2 Affiliated Companies 436 58.04 106.29% 416 60.93
--Interior & Exterior Trimming 197 25.71 105.92% 188 24.24
--Metal Forming & Dies 24 6.53 137.47% 27 4.80
--Functional Parts 157 22.14 103.71% 150 23.74
--Electrics & Electronics Parts 38 1.45 55.28% 32 3.33
--Hot Worked Parts 20 2.21 137.63% 19 4.82
Among Which: New Resource 5 0.02 8.00% 6 0.75
IISubtotal of scattered fixed assets
investments- 8.19 141.21% - 12.48
1 Parent Company (Manufactory) - 0.00 - - 0.00
2 Affiliated Companies - 8.19 141.21% - 12.48
33
Shanghai
45.8%
Eastern
18.8%
Central
15.0%
Northeastern
6.7%
Southern
9.5%
Northern
1.1%
Southwestern
0%
Overseas
3.2%
Accumulated Investment Analysis II
2014 Accumulated Investment- By Regions
Note: Above is prepared based on accumulated project investments, excluding those scattered investments.34
Second Level Company Third Level Company
Fourth Level and OthersSecond Level Company
Third Level Company
Overview of High-Tech Enterprises
Number of high-tech
companies- Consolidation
Level
Number of high-tech
companies- Combined
Level
29
Entities
62
Entities
12 of 15 direct-invested subsidiaries are qualified for High-Tech Enterprise, and enjoy a 15% beneficial tax rate, while the rest have tax
rates of 25% or 20%, those include GKN Driveline Sales, HASCO-CP and HASCO Shanghai.
There are 27 second level companies in combined level, 24 of which are High-Tech Enterprises. The 3 non-high-tech enterprises are
HASO-CP, FMSCM, HASCO-Shanghai.
17
12
33
24
5
35
53%
33%
0%
14%
VAT Income Tax Business Tax Others
56%31%
0%
12%
VAT Income Tax Business Tax Others
6.2
billion2014
5.4
billion2013
Tax Overview
Note: Others include custom duty, municipal construction tax, (local) education supplementary tax and etc.
36
Social Contribution Overview
1.201 1.3401.725
0.8170.986
1.4981.117
1.293
2.106
0.037
0.052
0.165
0.000
0.001
0.001
2012 2013 2014
Basic EPS Tax Per Share Contribution
Payroll Per Share Contribution Debt and Interest Per Share Contribution
Social Contribution Per Share
3.172
3.672
5.495
RMB
37
HUAYU Automotive Systems Co.,Ltd.
2015-03-27
THANKS
38