huayu automotive systems co., ltd. · huayu automotive systems co., ltd. 2014 financial analysis...

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


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


Metal Forming &Dies

Functional Parts Electric &Electronics Parts

Hot Worked Parts Total


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


Metal Froming &Dies

Functional Parts Electrics &Electronics Parts



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


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


Hot WorkedParts

Parent Companyand Eliminations

Total


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


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


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


Metal Forming &Dies



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


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


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

huayu automotive systems co., ltd. · huayu automotive systems co., ltd. 2014 financial analysis...

Documents