Shanghai 2020, March 24 / PRNewswire / – Can Valley Investment Management Consulting Services Limited ( “Can Valley” or the “Company”) (NYSE: CANG), China’s leading automotive industry trading platform, announced fourth quarter and full year 2019 unaudited financial results today.
2019 fourth quarter financial and operating highlights:
- in the fourth quarter 2019, the company’s total revenue of 439 million yuan (US $ 6,299 million) over last year’s RMB 321 million yuan increase of 36.6 percentage, 9.6 percentage exceeded the upper limit of the previous management expected.
- 2019 fourth quarter, service revenue market after the car 8,960 million ($ 12.9 million), 20.4 percentage of total revenue than continue to form a key driver of revenue growth.
- 2019 fourth quarter, the company’s operating profit increased by 231.0 percentage from RMB 3,560 ten thousand yuan a year earlier to 118 million yuan (US $ 1,691 million). After
- in the fourth quarter 2019, net profit of 102 million yuan ($ 14.7 million), compared with RMB 5,202 ten thousand yuan last year, up 96.8 percentage, the company’s non-GAAP adjustments (Non-GAAP ) net profit increased 86.7 percent to 123 million yuan (US $ 1,769 million) from RMB 6,599 ten thousand yuan a year earlier.
- fourth quarter of 2019, new car loans contributed to the company for 9.575 billion yuan (US $ 1.375 billion). As of December 31, 2019, the company contributed to a car loan in the loan balances totaled 40.032 billion yuan (US $ 5.75 billion).
- As of December 31, 2019, the Company has completed and all in M1 + and M3 + duration of overdue rate auto loans were 0.85 percentage and 0.40 percentage. As compared to September 30, 2019, M1 + and M3 + overdue rates were 0.85 percentage and 0.33 percentage.
- As of December 31, 2019, the CompanyThe number of dealer service network covers the period 49,238. As of September 30, 2019, the company’s business network covers the number of dealers is 49,396. The number of dealers were down due to the company to further enhance the operational efficiency of the business network, eliminated in the quarter did not reach some of the company’s operations and risk-store traffic metrics dealer.
2019 full-year financial and operating highlights:
- 2019 full year, the company’s total revenue of 1.44 billion yuan ($ 207 million), compared with 2018 full Year of 1.091 billion yuan increase of 31.9 percentage.
- 2019 full year, automotive after-market services business revenue grew 104.0 percent to 206 million yuan (US $ 29.6 million).
- 2019 full year, the company’s operating profit increased by 16.8 percentage of the full-year 2018 of 277 million yuan to 323 million yuan (US $ 4,644 million).
- 2019 full year, net profit of 405 million yuan (US $ 5,815 million), compared with the 2018 full-year 307 million yuan increase of 31.9 percentage, Non-GAAP net income of the year 2018 340 million yuan increase of 43.1 percent to 487 million yuan (US $ 6,997 million).
- 2019 full year, new car loans contributed to the company reached 28.054 billion yuan (US $ 4.03 billion).
- As of December 31, 2019, the Company has completed and all in M1 + and M3 + duration of overdue rate auto loans were 0.85 percentage and 0.40 percentage. As compared to December 31, 2018, M1 + and M3 + overdue rates were 0.74 percentage and 0.37 percentage.
- As of December 31, 2019, the company’s business network covers the number of dealers is 49,238. As compared to December 31, 2018, the number of dealers for the company’s business network covers 46,565 year on year to maintain growth.
usThe company adopts accounting standards ASC605 confirm the fourth quarter of 2019 revenue. In accordance with the relevant guidelines of the Financial Accounting Standards Board, 2019 full-year revenue accounting standards adopted ASC606 confirmation. Thus, in 2019 the company’s total revenue of 1.44 billion yuan ($ 207 million), the data is lower than the total revenue value under GAAP ASC605 to confirm. For more information, see “adoption of new accounting standards.”
Mr. Lin Jia Gu Yuan Chan, CEO, said: “Despite the macroeconomic uncertainty continues to increase, the industry is also facing environmental challenges, we once again achieved excellent operational and financial performance in the fourth quarter strong this quarter. performance once again confirms our efforts in strategic partners continue to optimize the dealer network, improve cross-selling strategy and expansion, with remarkable results. part through the elimination of poor performance of the dealer, we will be better this quarter also Chan Valley dealers the standardization of network services, and improve service quality and efficiency. in addition, thanks to our cross-selling strategy, the company’s auto insurance business contributed in the fourth quarter achieved significant growth, strengthening our exploration in the footsteps of the domestic auto insurance field.
came in 2020, the new crown epidemic has brought us a new set of challenges. at this stage, our priority is to ensure the physical and mental health of employees and partners. we are colleagues in the various regions of the country and their families giving out face masks and other protective equipment, and for all employees for the purchase of new outbreaks of crown Health insurance at the same time, we also set up a special fund, customized health care as the core dealer network and their families. On the operational side, we expect the outbreak could seriously disrupt the normal operation of distributors around the 2020 first quarter. in addition, to produce the epidemic level of consumer demand and the adverse effects of the automotive market. we expect the business volume will decrease, while the rise in mortgage delinquencies. January-February 2020, the company recorded a total of 39,138 pen car loans facilitate transactions, while 2019 in the same period data for the 71,765 pens. moment, we can not accurately determine when the new crown epidemic can be effectively controlled and its impact on the overall economy. we expect the new crown epidemic may continue to adversely affect our business in the 2020 first quarter .
but whatever the short-term impact, we are confident about the company’s business model. Over the past year, we in the macroeconomicThe case of the slowdown and auto market downturn, still maintained a growth and expansion of business performance, which demonstrates the strength of our business model. We have made in times of adversity and the ability to experience growth in the epidemic under control for us to seize the opportunity when the market recovers further consolidate the industry position to lay the foundation. “
Chan Valley CFO Mr. Zhang Yongyi, said:” While macroeconomic challenges continue, the domestic auto industry stagnated, we use the excellent fourth quarter performance for the 2019 New Year on a successful close. During the quarter, our revenue grew 36.6 percent to 439 million yuan. Among them, automotive after-market services as the company one of the important growth driver, contributed revenue of RMB 8,960 million yuan in the quarter, 20.4 percentage of total revenue. Meanwhile, thanks to our efforts in optimizing cost control, we have further enhanced profitability in the fourth quarter, net profit reached 102 million yuan, an increase of 96.8 percentage over last year. At present we are still observe and assess the financial impact of the epidemic on the company, but we firmly believe that the company continued to enhance the core competitiveness will help us well prepared to meet the market opportunities after the outbreak. “
2019 fourth quarter financial performance
income
2019 fourth quarter, the company’s total revenue of 439 million yuan (US $ 6,299 million), compared with 2018 321 million yuan over the same period grew 36.6 percentage. after the car market in the fourth quarter 2019 services revenue was RMB 8,960 million ($ 12.9 million), compared with RMB 43 million.
operating costs and expenses
2019 fourth quarter, the company’s total operating costs and expenses for the 321 million yuan (US $ 4,608 million), compared with 286 million yuan.
- 2019 fourth quarter, operating costs increased from last year’s 155 million yuan 1.8 percent to 157 million yuan (US $ 2,258 million) in the fourth quarter of 2019, accounting for operating costs of total revenue decreased from 48.1 to 35.9 percentage over the same period last year percentage, therefore, the same quarter gross margin from last yearThe percentage of 51.9 percentage rose to 64.1, reflecting the company’s effective cost control and economies of scale rising.
- fourth quarter of 2019, marketing and promotion expenses increased 17.5 percent to RMB 5,518 million (US $ 7.93 million) from RMB 4,695 ten thousand yuan a year earlier. Accounting for the quarter marketing and promotion costs of total revenue decreased from 14.6 last year to 12.6 percentage percentage, mainly due to the company’s revenue growth while maintaining the balance of the investment in marketing and promotion.
- 2019 fourth quarter, the company’s administrative expenses increased 26.3 percentage from RMB 5,228 ten thousand yuan a year earlier to RMB 6,605 million (US $ 9.49 million). Growth in administrative expenses mainly due to rise in the fourth quarter 2019 equity incentive costs. Accounting and administrative expenses by total revenues decreased from 16.3 percentage last year fell to 15.1 percentage.
- 2019 fourth quarter, the company’s R & D expenses decreased from RMB 1,994 ten thousand yuan a year earlier to RMB 1,863 million (US $ 2.68 million). The proportion of total revenue for the quarter R & D expenses decreased from 6.2 to 4.2 percentage last year’s percentage.
operating profit
in the fourth quarter 2019, operating profit of 118 million yuan (US $ 1,691 million), compared with RMB 3,557 ten thousand yuan last year growth of 231.0 percentage.
profit
in the fourth quarter 2019, net profit of 102 million yuan ($ 14.7 million), compared with RMB 5,202 ten thousand yuan last year increased 96.8 percentage. The fourth quarter of 2019, Non-GAAP net income of RMB 6,599 ten thousand yuan last year increased by 86.7 percent to 123 million yuan (US $ 1,769 million). Non-GAAP net income planing addition to the impact of equity-based compensation expense brought about. For more information, please refer to the original English text of the statement on “non-GAAP financial standards”.
per ADS (ADS) net
2019 In the fourth quarter, the company’s basic and diluted per American Depositary Share (ADS) net profit were 0.62 yuan (US $ 0.09), ADS Non-GAAP net income per share basic and diluted are 0.76 yuan ( $ 0.11). Each ADS is equivalent to two shares of Class A common stock.
balance sheet
As of December 31, 2019, the company’s total cash and cash equivalents 2.002 billion yuan ($ 288 million), compared to as of September 30, 2019 of 1.851 billion yuan increase.
2019 full-year financial performance
income
2019 full year, the company’s total revenue of 1.44 billion yuan ($ 207 million), compared with the year 2018 1.091 billion yuan increase of 31.9 percentage. After the year 2019 the car market service revenue was 206 million yuan (US $ 29.6 million), compared to the year 2018 was 101 million yuan.
Operating costs and expenses
2019 full year, the company’s total operating costs and expenses for the 1.117 billion yuan ($ 160 million), the year 2018 was 815 million yuan.
- 2019 full year, the company’s operating costs rose 25.4 percentage of the full-year 2018 of 430 million yuan to 539 million yuan (US $ 7,746 million). The proportion of full-year 2019, operating costs of total revenue decreased from 39.4 percentage the year 2018 to 37.4 percentage. Therefore, the 2019 full year gross margin percentage increased from 60.6 in 2018 to 62.6 annual percentage.
- 2019 full year, marketing and promotion expenses increased 15.3 percentage of the full-year 2018 of 167 million yuan to 193 million yuan (US $ 27.7 million). 2019 full-year marketing and promotion costs accounted for the total income decreased from 15.3 in 2018 to 13.4 percentage annual percentage.
- 2019 full year, the company’s administrative expenses for peopleRMB 237 million yuan (US $ 3,398 million), 16.4 percentage of total revenue. Compared to the year 2018, the company’s administrative expenses were 151 million yuan, 13.8 percentage of total revenue. Growth in administrative expenses mainly due to the rise in the company’s 2019 annual equity incentive costs.
- 2019 full year, the company’s R & D expenses increased from 4,671 ten thousand yuan RMB 2018 full-year to RMB 5,741 million (US $ 8.25 million). Accounting for 2019 full-year R & D expenses to total revenue declined from the year 2018 to 4.3 percent to 4.0 percentage.
operating profit
2019 full year, operating profit of 323 million yuan (US $ 4,644 million), compared with 2018, the year of 277 million yuan increase of 16.8 percentage.
profit
2019 full year, net profit of 405 million yuan (US $ 5,815 million), compared with the 2018 full-year 307 million yuan increase of 31.9 percentage. The year 2019, Non-GAAP net income of the year 2018 of 340 million yuan increase of 43.1 percent to 487 million yuan (US $ 6,997 million). Non-GAAP net income planing addition to the impact of equity-based compensation expense brought about. For more information, please refer to the original English text of the statement on “non-GAAP financial standards”.
per American Depositary Share (ADS) net profit
2019 full year, the company’s basic and diluted per American Depositary Share (ADS) net profit of 2.59 yuan ( $ 0.37) and 2.58 yuan (US $ 0.37), ADS Non-GAAP net income per share basic and diluted were 3.13 yuan ($ 0.45) and 3.12 yuan ($ 0.45). Each ADS is equivalent to two shares of Class A common stock.
adoption of new accounting standards
According to the 2012 revised “business start-Act” (referred to as the JOBS Act), the company was identified as EGC company (that is, “emerging growth companies”). EGC company can reduce some of the information disclosure provisions and exemptions for some public companies in accordance with relevant regulations. One provision makes it clear, unless it is required, EGC companies do not disclose information in accordance with new or revised financial accounting standards.
since the beginning of fiscal year 2019 to mid-2020 fiscal year, Chan Valley adopted the new accounting standards to disclose revenue recognition (ASC606) and financial instruments (ASU 2016-01) of.
2019 fourth quarter and financial data for the fourth quarter of 2018, still be disclosed in accordance with United States generally accepted accounting principles (GAAP), we did not make adjustments.
This release of the 2019 full-year financial data, in accordance with new accounting standards ASC 606 disclosure and ASU 2016-01, and 2018 full-year financial data is based on US Generally Accepted Accounting Principles (GAAP) disclosures.
outlook
The company expects first quarter 2020 total revenue of between 180 million yuan and 210 million yuan. This guidance represents only the company’s current preliminary expectations and on market and business conditions, the future may change.
earnings call will be information
Chan Valley in the fourth quarter and full year 2019 financial results conference call EDT 2020 March 23 Monday 21:00, or Beijing time 2020 March 24 was held on Tuesday, 9:00. Number to listen to the conference call as follows:
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International: |
+ 1-412-902-4272 |
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US Toll free: |
+ 1-888-346-8982 |
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4001-201-203
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| Hong Kong toll free:
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800-905-945
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+ 1-412-317-0088 |
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+ 1-877-344-7529 |
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10140633 |
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in addition, investors can also Chan Valley investor relations Web site (http: // ir listen to the call live and recording .cangoonline.com /).