- Net cash flow from operations in 2016
reached RMB179.2 million
(US$25.8 million), Expenditures and
deposits related to property, plant and equipment in 2016 was
RMB29.5 million (US$4.3 million) -
ZHANGZHOU, China, March 30, 2017 /PRNewswire/ -- China Zenix Auto
International Limited (NYSE: ZX) ("Zenix Auto" or "the Company"),
the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market
by sales volume, today announced its unaudited financial results
for the fourth quarter and full year ended December 31, 2016.
Financial Highlights
Fourth Quarter 2016:
- Revenue was RMB591.9 million
(US$85.3 million), up 0.7%
year-over-year from RMB587.5 million
in the fourth quarter of 2015;
- Gross margin was 15.0%;
- Net loss and total comprehensive loss was RMB11.6 million (US$1.7
million) with loss per American Depositary Share ("ADS") of
RMB0.23 (US$
0.03) compared with net profit and total comprehensive
income of RMB8.6 million with
earnings per ADS of RMB0.17 in the
fourth quarter of 2015;
- On December 31, 2016, total cash
and cash equivalents and fixed bank deposits with maturity period
over three months were RMB 1,186.8
million (US$ 170.9
million).
Full Year 2016:
- Revenue was RMB2,249.5 million
(US$324.0 million) compared with
RMB2,445.8 million in 2015;
- Gross margin of 17.2%, up from 14.9% in 2015;
- Net loss and total comprehensive loss was RMB25.9 million (US$3.7
million) with loss per ADS of RMB0.50 (US$0.07)
compared with net loss of RMB28.6
million with loss per ADS of RMB0.55 in 2015;
- Net cash flow from operations was RMB179.2 million (US$25.8
million).
Mr. Junqiu Gao, Deputy CEO and
Chief Sales and Marketing Officer of Zenix Auto, commented, "Our
OEM sales growth continues to reflect the turnaround in the heavy-
and medium-duty truck market in China during 2016. We have increased our
investment in research and development to develop new materials and
wheel designs for the steel and aluminum wheel markets, and to
maintain our market
leadership."
Mr. Martin Cheung, CFO of Zenix
Auto, commented, "We continue to focus on generating positive cash
flow from operations to strengthen our cash position and balance
sheet. We are managing our current assets and liabilities to
contribute to our financial condition."
2016 Fourth Quarter Results
Revenue for the fourth quarter ended December 31, 2016 was RMB
591.9 million (US$85.3
million) from RMB587.5 million
for the fourth quarter of 2015. The increase in revenue on a
year-over-year basis was mainly driven by renewed growth in truck
sales in China, especially for the
heavy- and medium-duty trucks.
Aftermarket sales in China
decreased by 13.5% year-over-year to RMB248.4 million (US$35.8
million) in the fourth quarter of 2016 from RMB287.2 million in the fourth quarter of 2015.
Total unit sales in the aftermarket decreased by 14.2%
year-over-year while pricing increased slightly. The aftermarket
wheel segment remained weak as the logistic-based truck market
remained sluggish and price competition stayed intense.
Sales to the Chinese OEM market increased by 20.4%
year-over-year to RMB255.7 million
(US$36.8 million) in the fourth
quarter of 2016 compared to RMB212.3
million in the same quarter of 2015. Total unit sales in the
OEM market increased by 13.2% year-over-year as a result of strong
truck sales, especially heavy- and medium-duty trucks, during the
fourth quarter of 2016.
International sales decreased slightly by 0.2% year-over-year to
RMB 87.8 million (US$12.6 million) in the fourth quarter of 2016
compared to sales of RMB88.0 million
in the fourth quarter of 2015. Total unit sales in the
international sales increased by 3.1% year-over-year in the fourth
quarter of 2016 but the weaker economic environment in our main
market, Southeast Asia, negatively
affected overall sales.
In the fourth quarter of 2016, domestic aftermarket sales,
domestic OEM sales and international sales contributed 42.0%, 43.2%
and 14.8% of revenue, respectively.
Sales of tubed steel wheels comprised 52.4% of 2016 fourth
quarter revenue compared to 53.9% in the same quarter in 2015.
Tubeless steel wheel sales represented 35.4% of fourth quarter
revenue compared to 36.5% in the same quarter of 2015. Tubed and
tubeless steel wheel sales remained the main sources of revenue for
the Company. However, sales of aluminum wheels increased and
accounted for 7.9% of fourth quarter revenue as compared to 4.7% in
the same quarter a year ago.
Fourth quarter gross profit decreased by 21.3% to RMB 88.8 million (US$12.8
million), compared to RMB112.9
million in the same quarter in 2015. Gross margin was 15.0%,
compared with 19.2% in the fourth quarter of 2015. The decrease in
gross margin on a year-over-year basis was mainly driven by the
price appreciation of raw materials, namely steel, which outpaced
Zenix's wheel price increase.
Selling and distribution expenses increased by 0.7% to
RMB45.4 million (US$6.5 million) from RMB45.1 million in the fourth quarter of 2015. As
a percentage of revenue, selling and distribution costs were 7.7%
in the fourth quarter of 2016, compared to 7.7% in the same quarter
a year ago.
Research and development ("R&D") expenses increased by 65.1%
to RMB23.5 million (US$3.4 million), compared to RMB14.3 million in the fourth quarter of 2015.
R&D as a percentage of revenue was 4.0% in the fourth quarter
of 2016, compared to 2.4% in same quarter of 2015.
Administrative expenses decreased by 9.6% to RMB 34.4 million (US$5.0
million) from RMB38.1 million
in the fourth quarter of 2015, mainly due to effective cost control
measures partially offset by the increase of office building
depreciation in the aluminum wheel production facility. As a
percentage of revenue, administrative expenses were 5.8% in the
fourth quarter of 2016, compared to 6.5% of revenue in the fourth
quarter of 2015.
Net loss and total comprehensive loss for the fourth quarter of
2016 was RMB11.6 million
(US$1.7 million), compared to net
profit and total comprehensive income of RMB8.6 million in the same quarter of
2015.
Basic and diluted loss per ADS in the fourth quarter of 2016
were RMB 0.23 (US$0.03) compared to basic and diluted earnings
per ADS of RMB0.17 in the same
quarter of 2015.
In the fourth quarter of 2016, the Company recorded net cash
outflows from operating activities of RMB41.4 million (US$6.0 million). Capital expenditures for the
purchase of property, plant and equipment in the fourth quarter
were RMB3.7 million (US$0.5 million). Deposits paid for acquisition of
property, plant and equipment in the fourth quarter were
RMB2.7 million (US$0.4 million).
During the fourth quarter of 2016 and 2015, the weighted average
number of ordinary shares was 206.5 million and the weighted
average number of ADSs was 51.6 million.
2016 Full Year Results
Revenue for the year ended December 31,
2016 was RMB2,249.5 million
(US$324.0 million) compared with
RMB2,445.8 million in 2015.
Aftermarket sales decreased by 14.5% to RMB1,021.3 million (US$147.1 million) in 2016, and represented 45.4%
of total revenue. Sales to the Chinese OEM market increased by 5.2%
to RMB856.7 million (US$123.4 million) and represented 38.1% of total
revenue. International sales decreased by 15.0% to RMB371.5 million (US$ 53.5
million) compared to last year, and represented 16.5% of
total revenue.
Tubed steel wheel sales in 2016 accounted for 54.6% of revenue
compared with 56.1% in 2015. Tubeless steel wheel sales accounted
for 36.4% of revenue compared with 37.5% in 2015. With the increase
in market acceptance, aluminum wheel sales accounted for 4.6% of
revenue in 2016 compared with 1.1% in 2015.
Gross profit for year 2016 was RMB 387.5
million (US$55.8 million),
compared with RMB363.8 million in
2015. Gross margin increased to 17.2% in 2016 from 14.9% in
2015.
Loss before taxation for the year 2016 was RMB25.6 million (US$3.7
million), compared with loss before taxation of RMB30.1 million in 2015.
Net loss and total comprehensive loss for full year 2016 was
RMB25.9 million (US$3.7 million), compared with net loss and total
comprehensive loss of RMB28.6 million
in 2015. Basic and diluted loss per ordinary share and per ADS for
the full year ended December 31, 2016
were RMB0.13 (US$0.02) and RMB0.50 (US$0.07),
respectively.
As of December 31, 2016, Zenix
Auto had bank balances and cash of RMB896.8
million (US$129.2 million) and
fixed bank deposits with a maturity period over three months of
RMB290.0 million (US$41.8 million). Total equity attributable to
owners of the Company was RMB2,537.6
million (US$365.5
million).
For the year ended December 31,
2016, the Company recorded cash inflows from operating
activities of RMB179.2 million
(US$25.8 million). Capital
expenditures for the purchase of property, plant and equipment were
RMB15.1 million (US$2.2 million). Deposits paid for acquisition of
property, plant and equipment were RMB14.5
million (US$2.1 million).
Conference Call Information
The Company will host a conference call, to be simultaneously
webcast, on Thursday, March 30, 2017
at 8:00 a.m. ET/ 8:00 p.m. Beijing Time. Interested parties may
participate in the conference call by dialing +1-877-407-0782 (U.S.
Toll Free) or +1-201-689-8567 (International). Please dial in five
minutes before the call start time and ask to be connected to the
"China Zenix Auto" conference call.
A replay will be available shortly after the conclusion of the
conference call through April 30,
2017, at 11:59 p.m. ET.
Interested parties may access the replay by dialing +1-877-481-4010
(U.S. Toll Free) or +1-919-882-2331 (International) and using
Conference ID 10278 to access the replay.
Exchange Rate Information
The United States dollar (US$)
amounts disclosed in this press release are presented solely for
the convenience of the reader. All translations from RMB to U.S.
dollars are made at a rate of RMB6.943 to US$1.00, the effective noon buying rate as of
December 31, 2016, in The
City of New York, for cable
transfers of RMB as set forth in the H.10 weekly statistical
release of the Federal Reserve Board. The percentages stated are
calculated based on RMB amounts.
About China Zenix Auto International Limited
China Zenix Auto International Limited is the largest commercial
vehicle wheel manufacturer in China in both the aftermarket and OEM market
by sales volume. The Company offers more than 772 series of
aluminum wheels, tubed steel wheels, tubeless steel wheels, and
off-road steel wheels in the aftermarket and OEM markets in
China and internationally. The
Company's customers include large PRC commercial vehicle
manufacturers, and it also exports products to over 80 distributors
in more than 28 countries worldwide. With six large, strategically
located manufacturing facilities in multiple regions across
China, the Company has a designed
annual production capacity of approximately 15.5 million units of
steel and aluminum wheels as of December 31,
2016. For more information, please visit:
www.zenixauto.com/en.
Safe Harbor
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. The
Company may make written or oral forward-looking statements in its
periodic reports to the SEC, in its annual report to shareholders,
in press releases and other written materials and in oral
statements made by its officers, directors or employees. Statements
that are not historical facts, including statements about the
Company'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. Further information regarding these risks is included in
our filings with the SEC. The Company does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of the press
release, and the Company undertakes no duty to update such
information, except as required under applicable law.
For more information, please contact
Kevin Theiss
Investor Relations
Awaken Advisors
Tel: +1-646-726-6511
Email: Kevin.Theiss@awakenlab.com
- tables follow -
China Zenix Auto
International Limited
|
Unaudited
Condensed Consolidated Statements of Profit or Loss and Other
Comprehensive Income
|
For the three
months ended December 31, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except number of shares and ADSs
and per share data)
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB' 000
|
|
RMB' 000
|
|
US$'
000
|
Revenue
|
|
|
587,502
|
|
591,888
|
|
85,250
|
Cost of
sales
|
|
|
(474,620)
|
|
(503,068)
|
|
(72,457)
|
Gross
profit
|
|
|
112,882
|
|
88,820
|
|
12,793
|
Other operating
income
|
|
|
3,086
|
|
4,978
|
|
717
|
Net exchange
gain
|
|
|
701
|
|
1,602
|
|
231
|
Selling and
distribution costs
|
(45,109)
|
|
(45,432)
|
|
(6,544)
|
Research and
development expenses
|
(14,252)
|
|
(23,528)
|
|
(3,389)
|
Administrative
expenses
|
|
|
(38,059)
|
|
(34,423)
|
|
(4,958)
|
Finance
costs
|
|
|
(6,100)
|
|
(5,344)
|
|
(770)
|
Profit (loss)
before taxation
|
|
|
13,149
|
|
(13,327)
|
|
(1,920)
|
Income tax (expense)
credit
|
|
|
(4,566)
|
|
1,700
|
|
245
|
Profit (loss) and
total
comprehensive income
(loss) for the period
|
|
|
8,583
|
|
(11,627)
|
|
(1,675)
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
|
|
0.04
|
|
(0.06)
|
|
(0.01)
|
Diluted
|
|
|
0.04
|
|
(0.06)
|
|
(0.01)
|
Earnings (loss)
per ADS
|
|
|
|
|
|
|
|
Basic
|
|
|
0.17
|
|
(0.23)
|
|
(0.03)
|
Diluted
|
|
|
0.17
|
|
(0.23)
|
|
(0.03)
|
Shares
|
|
|
206,500,000
|
|
206,500,000
|
|
206,500,000
|
ADSs
|
|
|
51,625,000
|
|
51,625,000
|
|
51,625,000
|
China Zenix Auto
International Limited
|
Unaudited
Condensed Consolidated Statements of Profit or Loss and Other
Comprehensive Income
|
For the years
ended December 31, 2016 and 2015
|
(RMB and US$
amounts expressed in thousands, except number of shares and ADSs
and per share data)
|
|
|
|
|
|
2015
|
|
2016
|
|
2016
|
|
|
|
RMB'
000
|
|
RMB'
000
|
|
US$'
000
|
Revenue
|
|
|
|
2,445,756
|
|
2,249,533
|
|
324,000
|
Cost of
sales
|
|
|
|
(2,081,976)
|
|
(1,862,017)
|
|
(268,186)
|
Gross
profit
|
|
|
|
363,780
|
|
387,516
|
|
55,814
|
Other operating
income
|
|
|
|
16,410
|
|
11,680
|
|
1,682
|
Net exchange
gain
|
|
|
|
5,793
|
|
2,546
|
|
367
|
Selling and
distribution costs
|
|
(212,273)
|
|
(181,911)
|
|
(26,201)
|
Research and
development expenses
|
|
(51,253)
|
|
(84,639)
|
|
(12,191)
|
Administrative
expenses
|
|
|
|
(136,681)
|
|
(139,377)
|
|
(20,074)
|
Finance
costs
|
|
|
|
(15,913)
|
|
(21,387)
|
|
(3,080)
|
Loss before
taxation
|
|
|
|
(30,137)
|
|
(25,572)
|
|
(3,683)
|
Income tax credit
(expense)
|
|
|
|
1,570
|
|
(352)
|
|
(51)
|
Loss and total
comprehensive loss for the
year
|
|
|
|
(28,567)
|
|
(25,924)
|
|
(3,734)
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
(0.14)
|
|
(0.13)
|
|
(0.02)
|
Diluted
|
|
|
|
(0.14)
|
|
(0.13)
|
|
(0.02)
|
Loss per
ADS
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
(0.55)
|
|
(0.50)
|
|
(0.07)
|
Diluted
|
|
|
|
(0.55)
|
|
(0.50)
|
|
(0.07)
|
Shares
|
|
|
|
206,500,000
|
|
206,500,000
|
|
206,500,000
|
ADSs
|
|
|
|
51,625,000
|
|
51,625,000
|
|
51,625,000
|
China Zenix Auto
International Limited
|
Unaudited
Consolidated Statements of Financial Position
|
(RMB and US$
amounts expressed in thousands)
|
|
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2016
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Inventories
|
|
181,905
|
|
138,740
|
|
19,983
|
Trade and other
receivables and prepayments
|
|
613,418
|
|
695,856
|
|
100,224
|
Prepaid lease
payments
|
|
9,425
|
|
9,425
|
|
1,357
|
Pledged bank
deposits
|
|
28,200
|
|
32,100
|
|
4,623
|
Fixed bank deposits
with maturity period over three months
|
|
260,000
|
|
290,000
|
|
41,769
|
Bank balances and
cash
|
|
817,247
|
|
896,799
|
|
129,166
|
Total current
assets
|
|
1,910,195
|
|
2,062,920
|
|
297,122
|
Non-Current
Assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
1,506,318
|
|
1,379,287
|
|
198,659
|
Prepaid lease
payments
|
|
385,874
|
|
376,449
|
|
54,220
|
Deferred tax
assets
|
|
15,958
|
|
23,836
|
|
3,433
|
Intangible
assets
|
|
17,000
|
|
17,000
|
|
2,449
|
Total non-current
assets
|
|
1,925,150
|
|
1,796,572
|
|
258,761
|
Total
assets
|
|
3,835,345
|
|
3,859,492
|
|
555,883
|
|
|
|
|
|
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Trade and other
payables and accruals
|
|
606,922
|
|
668,633
|
|
96,302
|
Amount due to a
shareholder
|
|
11,679
|
|
1,398
|
|
201
|
Taxation
payable
|
|
674
|
|
109
|
|
16
|
Short- term bank
borrowings
|
|
558,000
|
|
558,000
|
|
80,369
|
Total current
liabilities
|
|
1,177,275
|
|
1,228,140
|
|
176,888
|
Non-current
liabilities
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
85,284
|
|
85,286
|
|
12,284
|
Deferred
income
|
|
9,292
|
|
8,496
|
|
1,224
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
94,576
|
|
93,782
|
|
13,508
|
Total
liabilities
|
|
1,271,851
|
|
1,321,922
|
|
190,396
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
136
|
|
136
|
|
20
|
Paid in
capital
|
|
392,076
|
|
392,076
|
|
56,471
|
Reserves
|
|
2,171,282
|
|
2,145,358
|
|
308,996
|
Total equity
attributable to owners of the company
|
|
2,563,494
|
|
2,537,570
|
|
365,487
|
Total equity and
liabilities
|
|
3,835,345
|
|
3,859,492
|
|
555,883
|
China Zenix Auto
International Limited
|
Unaudited
Consolidated Statement of Cash Flows
|
For the year ended
December 31, 2016
|
(RMB and US$
amounts expressed in thousands)
|
|
OPERATING
ACTIVITIES
|
|
Year Ended
December 31, 2016
|
|
|
|
|
RMB'
000
|
|
US$'
000
|
|
Loss before
taxation
|
|
(25,572)
|
|
(3,683)
|
|
Adjustments
for:
|
|
|
|
|
|
|
Amortization of
prepaid lease payments
|
|
9,425
|
|
1,357
|
|
|
Depreciation of
property plant and equipment
|
|
154,783
|
|
22,293
|
|
|
Release of deferred
income
|
|
(796)
|
|
(115)
|
|
|
Finance
costs
|
|
21,387
|
|
3,080
|
|
|
Interest
income
|
|
(11,126)
|
|
(1,602)
|
|
|
Loss on disposal of
property, plant and equipment
|
105
|
|
15
|
|
Operating cash flows
before movements in working capital
|
148,206
|
|
21,345
|
|
Decrease in
inventories
|
|
43,165
|
|
6,217
|
|
Increase in trade and
other receivables and prepayments
|
(82,407)
|
|
(11,870)
|
|
Increase in trade and
other payables and accruals
|
|
67,363
|
|
9,702
|
|
Cash generated from
operations
|
|
176,327
|
|
25,394
|
|
Interest
received
|
|
11,123
|
|
1,602
|
|
PRC income tax
refund
|
|
510
|
|
73
|
|
PRC income tax
paid
|
|
(8,793)
|
|
(1,266)
|
|
NET CASH FROM
OPERATING ACTIVITIES
|
|
179,167
|
|
25,803
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(15,082)
|
|
(2,172)
|
|
Placement of pledged
bank deposits
|
|
(20,290)
|
|
(2,922)
|
|
Withdrawal of pledged
bank deposits
|
|
16,390
|
|
2,361
|
|
Deposits paid for
acquisition of property, plant and equipment
|
(14,464)
|
|
(2,083)
|
|
Placement of fixed
bank deposits with maturity periods over three months
|
(720,000)
|
|
(103,702)
|
|
Withdrawal of fixed
bank deposits with maturity periods over three months
|
690,000
|
|
99,381
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
(63,446)
|
|
(9,137)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
New bank borrowings
raised
|
|
558,000
|
|
80,369
|
|
Repayment of bank
borrowings
|
|
(558,000)
|
|
(80,369)
|
|
Interest
paid
|
|
(25,350)
|
|
(3,651)
|
|
Repayment to a
shareholder
|
|
(14,736)
|
|
(2,123)
|
|
Advance from a
shareholder
|
|
4,455
|
|
642
|
|
NET CASH FROM
FINANCING ACTIVITIES
|
|
(35,631)
|
|
(5,132)
|
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
80,090
|
|
11,534
|
|
Cash and cash
equivalents at beginning of the year
|
|
817,247
|
|
117,708
|
|
Effect of foreign
exchange rate changes
|
|
(538)
|
|
(76)
|
|
Cash and cash
equivalents at end of the year
|
|
896,799
|
|
129,166
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-zenix-auto-international-reports-fourth-quarter-and-full-year-2016-results-300431727.html
SOURCE China Zenix Auto International Limited