年報 2019 ANNUAL REPORT 2019 年 報 Annual Report Annual 2019 CONTENT Corporate Information 2 Financial Highlights 3 Chairman’s Statement 4 Management Discussion & Analysis 8 Directors and Senior Management 29 Report of Directors 37 Corporate Governance Report 55 Independent Auditor’s Report 70 Consolidated Statement of Profit or Loss 74 Consolidated Statement of Profit or Loss and Other Comprehensive Income 75 Consolidated Statement of Financial Position 76 Consolidated Statement of Changes in Equity 78 Consolidated Statement of Cash Flows 80 Notes to the Consolidated Financial Statements 83 Financial Summary 200 Corporate Information BOARD OF DIRECTORS JOINT COMPANY SECRETARIES Executive Directors Ms. ZHANG Hong Mr. CHEUNG Tak On (Chairman) Ms. MOK Ming Wai (FCIS, FCS) Mr. CAI Yingjie (Vice-chairman and Chief Executive Officer) AUTHORIZED REPRESENTATIVES Mr. WANG Zhigao (Vice-chairman) Mr. WANG Zhigao Mr. XU Yue (Vice-chairman and President) Ms. MOK Ming Wai Ms. CHEN Yi (Vice-president) AUDIT AND COMPLIANCE Non-executive Director Mr. WANG Liqun COMMITTEE Ms. ZHU Anna Dezhen (Chairman) Mr. LYU Wei Independent Non-executive Directors Mr. MU Binrui Ms. ZHU Anna Dezhen Mr. LYU Wei Mr. MU Binrui REMUNERATION COMMITTEE Ms. ZHU Anna Dezhen (Chairman) CORPORATE HEADQUARTER Mr. WANG Zhigao Mr. LYU Wei 299 Ruijin Nan Road, Huangpu District Shanghai PRC NOMINATION COMMITTEE Mr. CHEUNG Tak On (Chairman) PRINCIPAL PLACE OF BUSINESS Mr. LYU Wei Mr. MU Binrui IN HONG KONG Unit 5708, 57/F, The Center 99 Queen’s Road Central HONG KONG SHARE REGISTRAR Computershare Hong Kong Investor Services Limited Central Shops 1712-1716 Hong Kong 17th Floor, Hopewell Centre 183 Queen’s Road East REGISTERED OFFICE Wanchai 190 Elgin Avenue Hong Kong George Town Grand Cayman KY1-9005 Cayman Islands STOCK CODE 03669 PRINCIPAL SHARE REGISTRAR AND AUDITOR TRANSFER OFFICE Deloitte Touche Tohmatsu Intertrust Corporate Services (Cayman) Limited Certified Public Accountants 190 Elgin Avenue 35/F One Pacific Place George Town 88 Queensway Grand Cayman KY1-9005 Hong Kong Cayman Islands COMPANY WEBSITE LEGAL ADVISERS TO HONG KONG www.ydauto.com.cn LAW Davis Polk & Wardwell 18th Floor, The Hong Kong Club Building 3A Chater Road, Hong Kong 2 CHINA YONGDA AUTOMOBILES SERVICES HOLDINGS LIMITED Financial Highlights Passenger vehicles 2019 197,382 sales volume 2018 176,919 Sales volume of passenger 2017 vehicles (units) 171,640 0 50000 100000 150000 200000 Revenue 2019 62,707 RMB million 2018 55,318 2017 50,699 0 10000 20000 30000 40000 50000 60000 70000 80000 0 3 6 9 12 15 18 Gross profit and gross 2019 9.4% 5,864 profit margin 2018 9.4% 5,207 RMB million 2017 9.9% 5,025 0 1000 2000 3000 4000 5000 6000 Profit attributable to 2019 1,473 owners of the 2018 Company 1,253 RMB million 2017 1,510 0 500 1000 1500 2000 ANNUAL REPORT 2019 3 Chairman’s Statement Dear Shareholders, On behalf of the board of directors (the “Board”) and the management of China Yongda Automobiles Services Holdings Limited (the “Company”), I am pleased to present the 2019 Annual Report of the Company and its subsidiaries (collectively referred to as the “Group”, “we” or “us”). Based on the sales volume data officially published by luxury vehicles companies (豪華車企), the sales volume of luxury passenger vehicles in China in 2019 reached 3.143 million units, representing a year-on-year increase of 9.7%. However, based on the data of China Association of Automobile Manufacturers (中國汽車工業協會), the sales volume of passenger vehicles in China was only 21.444 million units in 2019, representing a year-on-year decrease of 9.6% compared with 2018. The luxury vehicles market has shown strong market momentum. As a leading passenger vehicle retailer and comprehensive service provider in China, our revenue and gross profit achieved relatively rapid growth in 2019. Our comprehensive revenue and comprehensive gross profit, taking into account the revenue from finance and insurance agency services, amounted to RMB63,801 million and RMB6,957 million respectively, representing a year-on-year increase of 13.3% and 12.6% respectively compared with 2018. In 2019, our net profit and net profit attributable to owners of the Company were RMB1,569 million and RMB1,473 million respectively, representing a year-on-year increase of 18.4% and 17.5% respectively compared with 2018. 4 CHINA YONGDA AUTOMOBILES SERVICES HOLDINGS LIMITED Chairman’s Statement KEY OPERATING RESULTS AND MANAGEMENT PERFORMANCE DURING THE REPORTING PERIOD 1. In 2019, our sales volume of new vehicles increased by 11.6% over the same period in 2018 to 197,382 units, of which sales of new vehicles of luxury brands increased by 15.5% year-on-year to 128,628 units. Our sales revenue of new vehicles reached RMB52,935 million, representing an increase of 13.3% compared with 2018, of which sales revenue from new vehicles of luxury brands increased by 14.5% over 2018 to RMB43,769 million. The proportion of sales revenue from new vehicles of luxury brands over the overall sales revenue of new vehicles has further increased to 82.7%. Our gross profit margin of new vehicle sales was 2.35%, which remained basically flat compared with 2.37% in 2018. The inventory turnover day of our new vehicle was 36.5 days, representing a decrease of 6.6 days compared to 2018. 2. In 2019, our after-sales service business, including maintenance services and automobile extended products and services, achieved steady growth and reached a revenue of RMB 8.897 billion, representing an increase of 13.5% compared to 2018. The gross profit margin of our after-sales service was 46.37%, representing a slight increase compared with 46.20% in 2018. 3. In 2019, the sales volume of pre-owned vehicles for which we acted as an agent was 41,295 units. We achieved continuous improvement in business scale and profit through our lean management. ANNUAL REPORT 2019 5 Chairman’s Statement 4. In 2019, we achieved the revenue of financial business of RMB1.617 billion, representing a 4.5% increase compared to the same period last year. We moderately slowed down the investment in proprietary finance. During this year, we achieved the revenue of proprietary finance business of RMB511 million and the revenue of finance and insurance agency business of RMB1.106 billion. 5. In 2019, our automobile rental services recorded revenue of RMB528 million, representing an increase of 29.2% compared to the same period in 2018. 6. In 2019, we completed the acquisitions and mergers of Porsche 4S dealership, Mercedes-Benz 4S dealership, Lexus 4S dealership and Tesla licensed metal sheet painting and maintenance center. 7. The Company has always kept pace with the times, vigorously promoted the construction of Digital Yongda, enchanced the scientific management of inventories, improved the management level for client assets and actively engaged youth talents in order to improve the Group’s comprehensive competitiveness. FUTURE PROSPECTS The Group believes that the industry policy to promote vehicle consumption upgrade in China is favorable in the long run. Upon the smooth resolving of novel coronavirus epidemic, there will be a relatively large recovery in the automobile market, and the sales of luxury brand automobiles and relevant service products are expected to continue to maintain a relatively good trend of growth. We plan to focus on the following aspects in our future development: 1. We will firmly uphold the automobile sales and services as principal business, particularly focusing on the development of luxury brand automobiles; 2. We will adhere to the measures of combining self-built outlets and acquisitions and mergers to steadily promote the nationwide network layout. We will focus on promoting the strategic expansion of luxury brands outlets including Porsche, BMW, Mercedes-Benz and Lexus; 3. We will vigorously push ahead the coordinated development of finance, pre-owned vehicles and new energy vehicle businesses, focusing on empowering the principal business of automobile sales and services to satisfy the changing demand and trend in consumers’ consumption; 4. We will take the construction of Digital Yongda as one of the key long-term tasks of the Group; 5. We will continuously fulfil the social responsibility of the Company; 6. We will enhance the team construction, actively engage young management, constantly improve the asset operation quality; adhere to manage with high objectives and strict requirements and insist on reformation and innovation to promote the sustainable development of the Company. 6 CHINA YONGDA AUTOMOBILES SERVICES HOLDINGS LIMITED Chairman’s Statement On behalf of the Board, I would like to express our sincere gratitude to all of the staff for their efforts and to various parties in the community for their supports towards the steady development of the Group. Cheung Tak On Chairman April 2, 2020 ANNUAL REPORT 2019 7 Management Discussion & Analysis MARKET REVIEW According to the sales volume data officially published by luxury vehicles companies (豪華車企), sales volume of luxury passenger vehicles in China reached 3.143 million units in 2019, representing a year-on-year increase of 9.7%, of which, sales of BMW increased by 13.1% year-on-year, sales of Porsche increased by 8.0% year-on-year, sales of Mercedes-Benz increased by 6.2% year-on-year and sales of Lexus increased by 25.0% year-on-year. According to the data from China Association of Automobile Manufacturers (中國汽車工業協會), the sales volume of passenger vehicles in China was 21.444 million units in 2019, representing a year-on-year decrease of 9.6% compared with 2018. The rapid growth in sales volume of luxury vehicles is mainly due to the continuous demand of consumption upgrade in China, the constant extension of luxury brand product lines and the enrichment of automobile finance products.