BEIJING, Aug. 15, 2017 /PRNewswire/ -- Bitauto Holdings
Limited ("Bitauto" or the "Company") (NYSE: BITA), a leading
provider of internet content & marketing services, and
transaction services for China's
fast-growing automotive industry, today announced its unaudited
financial results for the second quarter ended June 30, 2017[1].
Bitauto Second Quarter 2017 Highlights
- Revenue in the second quarter of 2017 was RMB2.17 billion (US$320.2
million), a 54.7% increase from the corresponding period in
2016.
- Gross profit in the second quarter of 2017 was
RMB1.40 billion (US$206.2 million), a 62.2% increase from the
corresponding period in 2016.
- Income from operations in the second quarter of 2017 was
RMB12.8 million (US$1.9 million), a 17.2% increase from the
corresponding period in 2016.
- Non-GAAP income from operations in the second quarter of
2017 was RMB294.2 million
(US$43.4 million), a 62.9% increase
from the corresponding period in 2016.
- Net loss in the second quarter of 2017 was RMB63.3 million (US$9.3
million), compared to a net loss of RMB39.1 million (US$5.8
million) in the corresponding period in 2016.
- Non-GAAP net income in the second quarter of 2017 was
RMB225.4 million (US$33.2 million), a 69.2% increase from the
corresponding period in 2016.
- Basic and diluted net loss per ADS in the second quarter
of 2017 was RMB2.34 (US$0.35) and RMB2.35 (US$0.35),
respectively.
- Non-GAAP basic and diluted net income per ADS in the
second quarter of 2017 was RMB1.72
(US$0.25) and RMB1.60 (US$0.24),
respectively.
Mr. William Li, chief executive
officer and chairman of Bitauto said, "In the second quarter of
2017 we saw exciting results from our operations amidst
encouraging trends in online auto
marketing. Total revenue grew 54.7% to reach RMB2.17 billion, as all of our business lines
achieved solid growth. Most notably, transaction services generated
RMB922.6 million in revenue
representing 188.1% annual growth, while advertising and
subscription services grew 13.1% year-over-year to RMB1.01 billion showing substantial pickup from
recent periods."
"Our efforts in three key enhancement
areas set out for 2017 -- traffic and content, conversion
rate, and monetization – are paying off. With healthy market
conditions and effective execution, we are confident to see
continued growth for the rest of the year."
Mr. Andy Zhang, president of
Bitauto, said, "In another robust quarter
for transaction services, the increasing contribution from our
platform business was particularly encouraging. We constantly
optimize services and products provided on our platform to
best fulfill demands from today's auto consumers who prefer the
ease and transparency of online auto services. Our growing list of
business partners includes auto dealers and financial institutions
that are increasingly relying on us to tap into the digital
consumer segment, while leveraging on our proven capability in
online CRM and risk management."
Ms. Cynthia He, chief financial
officer of Bitauto, said, "In the second quarter, we continued to
see profit pickup at all levels, which again demonstrates increased
economies of scale and operational efficiency. We are excited by
the market opportunities in front of us, and ample cash flow will
allow us to spend and invest optimally for sustained growth as
China's preferred online auto
consumption platform."
Bitauto Second Quarter 2017 Results
Bitauto reported revenue of RMB2.17 billion (US$320.2
million) for the second quarter of 2017, representing a
54.7% increase from the corresponding period in 2016. The increase
in revenue was primarily attributable to the growth of the
Company's transaction services business and advertising and
subscription business.
- Revenue from the advertising and subscription business
for the second quarter of 2017 was RMB1.01
billion (US$148.5 million),
representing a 13.1% increase from RMB890.3
million (US$131.3 million) in
the corresponding period in 2016.
- Revenue from the transaction services business for the
second quarter of 2017 was RMB922.6
million (US$136.1 million),
representing a 188.1% increase from RMB320.3
million (US$47.2 million) in
the corresponding period in 2016. The increase was attributable to
a higher volume of transaction services.
- Revenue from the digital marketing solutions business
for the second quarter of 2017 was RMB241.4
million (US$35.6 million),
representing a 25.2% increase from RMB192.8
million (US$28.4 million) in
the corresponding period in 2016.
Cost of revenue for the second quarter of 2017 was
RMB772.7 million (US$114.0 million), representing a year-over-year
increase of 42.7% from the corresponding period in 2016. The
increase was primarily due to increased cost related to transaction
services. Cost of revenue as a percentage of revenue in the second
quarter of 2017 was 35.6%, compared to 38.6% in the corresponding
period in 2016, showing economies of scale.
Gross profit for the second quarter of 2017 was
RMB1.40 billion (US$206.2 million), representing a 62.2% increase
from the corresponding period in 2016.
Selling and administrative expenses were RMB1.26 billion (US$186.2
million) for the second quarter of 2017, representing a
60.7% increase from the corresponding period in 2016. This increase
was primarily attributable to the increase in Company's marketing
effort, headcount and related expenses, and, to a lesser extent, professional expenses incurred in
relation to the Series C preferred shares issued by Yixin and
subscribed by Bitauto in May
2017.
Product development expenses were RMB129.3 million (US$19.1
million) for the second quarter of 2017, representing a
27.7% increase from the corresponding period in 2016. The increase
was primarily due to an increase in product development headcount
and related expenses.
Share-based payment expenses, which were allocated to
related operating expense line items, were RMB71.0 million (US$10.5
million) in the second quarter of 2017, compared to
RMB16.6 million (US$2.4 million) in the corresponding period in
2016. The increase was mainly due to the granting of restricted
share units in the first half of 2017.
Income from operations in the second quarter of 2017 was
RMB12.8 million (US$1.9 million), a 17.2% increase from the
corresponding period in 2016.
Non-GAAP income from operations in the second quarter of
2017 was RMB294.2 million
(US$43.4 million), representing a
62.9% increase from the corresponding period in 2016.
Investment income in the second quarter of 2017 was
RMB38.4 million (US$5.7 million), compared to an investment loss
of RMB1.9
million (US$0.3
million) in the corresponding period in 2016. The current
quarter income included the disposal gain from one of the Company's
equity investees.
Income tax expense in the second quarter of 2017 was
RMB103.1 million (US$15.2 million), compared to an income tax
expense of RMB38.7 million
(US$5.7 million) in the corresponding
period in 2016. The increase was mainly due to the impact of
increased income from operations for some of the Company's
subsidiaries.
Net loss in the second quarter of 2017 was RMB63.3 million (US$9.3
million), compared to a net loss of RMB39.1 million (US$5.8
million) in the corresponding period in 2016. Basic and
diluted net loss per ADS, each representing one ordinary share, in
the second quarter of 2017 amounted to RMB2.34 (US$0.35)
and RMB2.35 (US$0.35), respectively, taking into
consideration the accretion to redeemable noncontrolling interests
amounting to RMB91.9 million
(US$13.6 million).
Non-GAAP net income in the second quarter of 2017 was
RMB225.4 million (US$33.2 million), representing a 69.2% increase
from the corresponding period in 2016. Non-GAAP basic and diluted
net income per ADS in the second quarter of 2017 amounted to
RMB1.72 (US$0.25) and RMB1.60 (US$0.24),
respectively, taking into consideration the accretion to redeemable
noncontrolling interests amounting to RMB91.9 million (US$13.6
million).
As of June 30, 2017, the Company
had cash and cash equivalents, time deposit and restricted
cash of RMB7.63 billion
(US$1.13 billion). Cash provided
by operating activities, cash used in investing activities, and
cash provided by financing activities in the second quarter of
2017 were RMB173.0 million
(US$25.5 million), RMB4.76 billion (US$702.4
million), and RMB3.01 billion
(US$444.5 million), respectively.
Accounts receivable, net was RMB2.48 billion (US$366.5
million) as of June 30, 2017,
compared to RMB2.07 billion
(US$305.1 million) as of December 31, 2016.
As of June 30, 2017, the Company's
transaction services business had cash and cash equivalents and
restricted cash of RMB4.04 billion
(US$595.3 million), finance
receivables of RMB19.68 billion
(US$2.90 billion) and borrowings and
nonrecourse securitization debt of RMB17.00
billion (US$2.51 billion).
The number of employees totaled 8,706 as of June 30, 2017, including employees of the
entities in which Bitauto acquired and holds controlling interests.
This represented a 39.4% increase from June
30, 2016, primarily due to higher headcount in customer
service teams supporting the Company's fast-growing transaction
service business, as well as additional headcount from Kankanche
which Bitauto acquired in the fourth quarter of 2016.
As of June 30, 2017, the Company
had a total of 70,726,025 ordinary shares, with 34,775,744 ADSs
issued and outstanding. Each ADS represents one ordinary share of
the Company. Non-GAAP basic and diluted per ADS figures for the
second quarter of 2017 were calculated using a weighted average of
69,810,942 and 77,989,162 ADSs, respectively.
Third Quarter 2017 Outlook
Bitauto currently expects to generate
revenue in the range of RMB2.17
billion (US$320.1 million) to RMB2.22
billion (US$327.5 million) in
the third quarter of 2017, representing a 42.3% to 45.6% increase
from the corresponding period in 2016, or with direct vehicle sales
being excluded, representing a 61.2% to 64.9% net revenue increase
from the corresponding period in 2016.
This forecast takes into consideration seasonality factors in
Bitauto's business, and excludes any impact of foreign currency
fluctuation. It reflects management's current and preliminary view,
which is subject to change.
Conference Call Information
Bitauto's management will hold an earnings conference call at
8:00 AM on August 15, 2017 U.S. Eastern Time (8:00 PM on August 15,
2017 Beijing/Hong Kong
time).
Dial-in details for the earnings conference call are as
follows:
US:
|
+1-845-675-0437 or
+1-866-519-4004
|
Hong Kong:
|
+852-3018-6771 or
800-906-601
|
China:
|
800-8190-121 or
400-6208-038
|
International:
|
+65-6713-5090
|
|
|
Conference
ID:
|
53645924
|
A replay of the conference call may be accessed by phone at the
following number until August 22,
2017:
US:
|
+1-855-452-5696 or
+1-646-254-3697
|
International:
|
+61-2-8199-0299
|
|
|
Conference
ID:
|
53645924
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.bitauto.com.
[1] This
announcement contains translations of certain amounts in Renminbi
into U.S. dollars at specified rates solely for the convenience of
the readers. Unless otherwise noted, all translations from Renminbi
to U.S. dollars are made at a rate of RMB6.7793 to US$1.00, the
effective noon buying rate as of June 30, 2017 in The City of New
York for cable transfers of Renminbi as certified for customs
purposes by the Federal Reserve Bank of New York.
|
About Bitauto Holdings Limited
Bitauto Holdings Limited (NYSE: BITA) is a leading provider of
internet content & marketing services, and transaction services
for China's fast-growing
automotive industry. Bitauto manages its businesses in three
segments: its advertising and subscription business, transaction
services business and digital marketing solutions business.
Bitauto's advertising and subscription business provides a
variety of advertising services mainly to automakers through its
bitauto.com website as well as
corresponding mobile applications,
which provide consumers with
up-to-date new and used automobile pricing and promotional
information, specifications, reviews and consumer feedback. Bitauto
also offers subscription services via its SaaS platform, which
provides web-based and mobile-based integrated digital marketing
solutions to automobile dealers in China. The platform enables dealer subscribers
to create their own online showrooms, list pricing and promotional
information, provide dealer contact information, place
advertisements and manage customer relationships to help them reach
a broad set of purchase-minded customers and effectively market
their automobiles to consumers online.
Bitauto's transaction services business
is a leading automotive transaction services platform in
China, which provides transaction
facilitation services to automobile dealers and online automotive
financial platform services to consumers and financial institutions
including banks, auto finance companies and insurance
companies.
Bitauto's digital marketing solutions business provides
automakers with one-stop digital marketing solutions, including
website creation and maintenance, online public relations, online
marketing campaigns and advertising.
For more information, please visit ir.bitauto.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the business outlook of the Company and the
quotations from management in this announcement, as well as
Bitauto's strategic and operational plans, contain forward-looking
statements. Bitauto may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about Bitauto's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: our goals
and strategies; our future business development, financial
condition and results of operations; the expected growth of the
automobile industry and the internet marketing industry in
China; our expectations regarding
demand for and market acceptance of our services and service
delivery model; our expectations regarding enhancing our brand
recognition; our expectations regarding keeping and strengthening
our relationships with major customers, partner websites and media
vendors; relevant government policies and regulations relating to
our businesses, automobile purchases and ownership in China; our ability to attract and retain
quality employees; our ability to stay abreast of market trends and
technological advances; competition in our industry in China and internationally; general economic
and business conditions in China;
and our ability to effectively protect our intellectual property
rights and not infringe on the intellectual property rights of
others. Further information regarding these and other risks is
included in Bitauto's filings with the Securities and Exchange
Commission, including its annual report on Form 20-F. Bitauto does
not undertake any obligation to update any forward-looking
statement as a result of new information, future events or
otherwise, except as required under applicable law. All information
provided in this press release and in the attachments is as of the
date of this press release, and Bitauto undertakes no duty to
update such information, except as required under applicable
law.
Use of Non-GAAP Financial Measures
To supplement Bitauto's consolidated financial results presented
in accordance with U.S. GAAP, Bitauto uses Non-GAAP income from
operations, Non-GAAP net income and Non-GAAP basic and diluted net
income per ADS as non-GAAP financial measures. Non-GAAP income from
operations is defined as income from operations excluding (i)
share-based payments; (ii) amortization of intangible assets
resulting from asset and business acquisitions; and (iii)
professional expenses incurred for the issuance of preferred
shares. Non-GAAP net income is defined as net income excluding (i)
share-based payments; (ii) amortization of intangible assets
resulting from asset and business acquisitions; (iii) professional
expenses incurred for the issuance of preferred shares; (iv) share
of amortization of equity investments' intangible assets not on
their books; (v) investment income/(loss) associated with non-cash
investment matters; and (vi) amortization of the BCF discount on
the convertible notes. Non-GAAP basic and diluted net income per
ADS is defined as Non-GAAP net income attributable to ordinary
shareholders of the parent company divided by basic and diluted
weighted average number of ADS. These non-GAAP financial measures
provide Bitauto's management with the ability to assess its
operating results by excluding certain items that may not be
indicative of the performance of its business such as non-cash and
non-recurring items. Bitauto believes these non-GAAP financial
measures are useful to investors by understanding supplemental
information used by management in its assessment of operating
results.
The use of non-GAAP financial measures has certain limitations.
These non-GAAP measures exclude certain items that have been and
will continue to be incurred in the future and are not reflected in
the presentation of the non-GAAP financial measures. These non-GAAP
financial measures should be considered in addition to results
prepared in accordance with U.S. GAAP, and should not be considered
a substitute for or superior to U.S. GAAP results. In addition,
these non-GAAP financial measures may not be comparable to
similarly titled measures utilized by other companies since such
other companies may not calculate such measures in the same manner
as Bitauto does.
Reconciliation of these non-GAAP financial measures to the most
directly comparable U.S. GAAP financial measure is set forth at the
end of this release.
For investor and media inquiries, please contact:
China
Suki Li
Bitauto Holdings Limited
Phone: +86-10-6849-2145
ir@bitauto.com
Clarisse Pan
Foote Group
Phone: +86-10-8429-9544
bitauto@thefootegroup.com
SELECTED
CONSOLIDATED FINANCIAL DATA
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2017
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,403,378
|
|
2,170,632
|
|
3,716,074
|
Cost of
revenue
|
|
(541,634)
|
|
(772,659)
|
|
(1,291,666)
|
Gross
profit
|
|
861,744
|
|
1,397,973
|
|
2,424,408
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
(785,509)
|
|
(1,262,490)
|
|
(2,183,486)
|
Product development
expenses
|
|
(101,253)
|
|
(129,260)
|
|
(246,100)
|
Other gains,
net
|
|
35,911
|
|
6,543
|
|
7,048
|
Income from
operations
|
|
10,893
|
|
12,766
|
|
1,870
|
|
|
|
|
|
|
|
Interest
income
|
|
6,265
|
|
23,253
|
|
38,979
|
Interest
expense
|
|
(8,465)
|
|
(19,293)
|
|
(37,885)
|
Share of results of
equity investees
|
|
(7,150)
|
|
(15,305)
|
|
(28,664)
|
Investment
(loss)/income
|
|
(1,873)
|
|
38,400
|
|
74,723
|
(Loss)/Profit
before tax
|
|
(330)
|
|
39,821
|
|
49,023
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(38,724)
|
|
(103,091)
|
|
(162,406)
|
Net
loss
|
|
(39,054)
|
|
(63,270)
|
|
(113,383)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to noncontrolling interests
|
|
862
|
|
7,096
|
|
(5,958)
|
Accretion to
redeemable noncontrolling interests
|
|
36,521
|
|
91,865
|
|
172,177
|
Net loss
attributable to Bitauto Holdings Limited
|
|
(76,437)
|
|
(162,231)
|
|
(279,602)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial
data
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
133,213
|
|
225,358
|
|
382,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP to Non-GAAP results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2017
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
Income from
operations
|
|
10,893
|
|
12,766
|
|
1,870
|
Share-based
payments
|
|
16,577
|
|
70,979
|
|
136,132
|
Amortization of
intangible assets resulting from asset and business
acquisitions
|
|
153,191
|
|
168,839
|
|
337,678
|
Professional expenses
incurred for the issuance of preferred shares
|
|
-
|
|
41,638
|
|
41,638
|
Non-GAAP income
from operations
|
|
180,661
|
|
294,222
|
|
517,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(39,054)
|
|
(63,270)
|
|
(113,383)
|
Share-based
payments
|
|
16,577
|
|
70,979
|
|
136,132
|
Amortization of
intangible assets resulting from asset and business
acquisitions
|
|
153,191
|
|
168,839
|
|
337,678
|
Professional expenses
incurred for the issuance of preferred shares
|
|
-
|
|
41,638
|
|
41,638
|
Share of amortization
of equity investments' intangible assets not on their
books
|
|
626
|
|
27
|
|
653
|
Investment
loss/(income) associated with non-cash investment
matters
|
|
1,873
|
|
(1,453)
|
|
(37,776)
|
Amortization of the
BCF discount on the convertible notes
|
|
-
|
|
8,598
|
|
17,356
|
Non-GAAP net
income
|
|
133,213
|
|
225,358
|
|
382,298
|
|
|
|
|
|
|
|
Non-GAAP net
income per ADS
|
|
|
|
|
|
|
Basic
|
|
1.51
|
|
1.72
|
|
2.94
|
Diluted
|
|
1.47
|
|
1.60
|
|
2.73
|
SELECTED
CONSOLIDATED FINANCIAL DATA
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
December 31,
2016
|
|
June 30,
2017
|
|
|
RMB
|
|
RMB
|
|
|
(in
thousands)
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
2,021,989
|
|
2,662,534
|
Time
deposits
|
|
2,000
|
|
2,000
|
Restricted
cash
|
|
5,475,576
|
|
4,816,704
|
Accounts
receivable, net
|
|
2,068,615
|
|
2,484,811
|
Bills
receivable
|
|
110,236
|
|
242,865
|
Other current
assets
|
|
6,796,543
|
|
9,034,085
|
Non-current
assets
|
|
13,459,797
|
|
17,599,408
|
Total
assets
|
|
29,934,756
|
|
36,842,407
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Accounts
payable
|
|
1,603,577
|
|
1,754,796
|
Other current
liabilities
|
|
10,350,339
|
|
14,777,456
|
Non-current
liabilities
|
|
4,219,129
|
|
5,592,952
|
Total
liabilities
|
|
16,173,045
|
|
22,125,204
|
Redeemable
noncontrolling interests
|
|
3,939,646
|
|
5,165,106
|
Total
equity
|
|
9,822,065
|
|
9,552,097
|
Total liabilities,
redeemable noncontrolling
interests and equity
|
|
29,934,756
|
|
36,842,407
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content:http://www.prnewswire.com/news-releases/bitauto-announces-second-quarter-2017-results-300504453.html
SOURCE Bitauto Holdings Limited