BEIJING, Nov. 20, 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 third quarter ended September 30, 2017[1].
Bitauto Third Quarter 2017 Highlights
- Revenue in the third quarter of 2017 was RMB2.34 billion (US$352.4
million), a 53.7% increase from the corresponding period in
2016.
- Gross profit in the third quarter of 2017 was
RMB1.51 billion (US$227.4 million), a 54.0% increase from the
corresponding period in 2016.
- Loss from operations in the third quarter of 2017 was
RMB433.3 million (US$65.1 million), compared to a loss from
operations of RMB13.1 million
(US$2.0 million) in the corresponding
period in 2016. The increased loss was mainly due to newly granted
options by Yixin to its employees in the third quarter of
2017.
- Non-GAAP income from operations in the third quarter of
2017 was RMB266.2 million
(US$40.0 million), a 66.7% increase
from the corresponding period in 2016.
- Net loss in the third quarter of 2017 was RMB510.2 million (US$76.7
million), compared to a net loss of RMB47.4 million (US$7.1
million) in the corresponding period in 2016.
- Non-GAAP net income in the third quarter of 2017 was
RMB231.8 million (US$34.8 million), a 78.5% increase from the
corresponding period in 2016.
- Basic and diluted net loss per ADS in the third quarter
of 2017 was RMB8.83 (US$1.33) and RMB8.84 (US$1.33),
respectively.
- Non-GAAP basic and diluted net income per ADS in the
third quarter of 2017 was RMB1.70
(US$0.26) and RMB1.56 (US$0.23),
respectively.
Mr. William Li, chairman and
chief executive officer of Bitauto said, "Bitauto continued to make
solid progress across our business lines in the third quarter of
2017, with total revenue up 53.7% year-over-year to RMB2.34 billion. With
our ongoing efforts across Bitauto's three key enhancement areas
for 2017 – traffic and content, conversion rate, and monetization –
continuing to pay off, we remain optimistic about our performance
for the full year and beyond."
Mr. Andy Zhang, president of
Bitauto, said, "Yixin's Hong Kong IPO is an important milestone for
both Yixin and Bitauto. Yixin's listing will broaden its access to
capital, talent and business opportunities while feeding back into
the Bitauto value chain across China's auto consumption market. The net
proceeds from the global offering will provide Yixin with
additional resources to further strengthen our transaction services
business and marketing initiatives."
"Driven by our seamless integrated omni-channel operational
capabilities and strong data analytics capabilities, Yixin's platform business continues to gain
traction with both our business partners and auto consumers. In the
third quarter, Yixin generated approximately 140,000 automobile
retail and auto related transactions. Yixin's monthly active users
reached 51 million in September 2017,
and among Yixin's network of over 15,000 dealership stores, there
were 100 Yixin experience stores nationwide as of September 30, 2017. We are pleased to see Yixin's
platform business increasingly contribute to both revenue and
profit in the third quarter of this year as we unlock the potential
of our platform business."
Ms. Cynthia He, chief financial
officer of Bitauto, said, "As transaction services maintained
strong momentum, growing 145.7% year-over-year to RMB1.05 billion, we saw steady pickup in our
advertising and subscription services business which grew 19.3% to
RMB1.07 billion, largely due to
increases in spending from automakers and dealers and the number of
dealer customers. We will continue to build up our business to
create long-term value for our shareholders."
Bitauto Third Quarter 2017 Results
Bitauto reported revenue of RMB2.34 billion (US$352.4
million) for the third quarter of 2017, representing a 53.7%
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 third quarter of 2017 was RMB1.07
billion (US$161.1 million),
representing a 19.3% increase from RMB898.3
million (US$135.0 million) in
the corresponding period in 2016.
- Revenue from the transaction services business for the
third quarter of 2017 was RMB1.05
billion (US$158.4 million),
representing a 145.7% increase from RMB429.0
million (US$64.5 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 third quarter of 2017 was RMB218.9
million (US$32.9 million),
representing a 10.6% increase from RMB197.9
million (US$29.7 million) in
the corresponding period in 2016.
Cost of revenue for the third quarter of 2017 was
RMB832.0 million (US$125.0 million), representing a year-over-year
increase of 53.3% from the corresponding period in 2016. The
increase was primarily due to increased costs related to
transaction services. Cost of revenue as a percentage of revenue in
the third quarter of 2017 was 35.5%, compared to 35.6% in the
corresponding period in 2016.
Gross profit for the third quarter of 2017 was
RMB1.51 billion (US$227.4 million), representing a 54.0% increase
from the corresponding period in 2016.
Selling and administrative expenses were RMB1.79 billion (US$268.6
million) for the third quarter of 2017, representing a
101.1% increase from the corresponding period in 2016. This
increase was primarily attributable to the increase in share-based
payment expenses, the Company's marketing efforts, headcount and
related expenses.
Product development expenses were RMB156.5 million (US$23.5
million) for the third quarter of 2017, representing a 44.5%
increase from the corresponding period in 2016. The increase was
primarily due to the increase in product development headcount and
related expenses, and share-based payment expenses.
Share-based payment expenses, which were allocated to
related operating expense line items, were RMB522.0 million (US$78.5
million) in the third quarter of 2017, compared to
RMB16.5 million (US$2.5 million) in the corresponding period in
2016. The increase was mainly due to newly granted options by Yixin
to its employees in the third quarter of 2017.
Loss from operations in the third quarter of 2017 was
RMB433.3 million (US$65.1 million), compared to a loss from
operations of RMB13.1 million
(US$2.0 million) in the corresponding
period in 2016.
Non-GAAP income from operations in the third quarter of
2017 was RMB266.2 million
(US$40.0 million), representing a
66.7% increase from the corresponding period in 2016.
Income tax expense in the third quarter of 2017 was
RMB38.9 million (US$5.8 million), compared to an income tax
expense of RMB23.4 million
(US$3.5 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 third quarter of 2017 was RMB510.2 million (US$76.7
million), compared to a net loss of RMB47.4 million (US$7.1
million) in the corresponding period in 2016. Basic and
diluted net loss per ADS, each representing one ordinary share, in
the third quarter of 2017 amounted to RMB8.83 (US$1.33)
and RMB8.84 (US$1.33), respectively, taking into
consideration the accretion to redeemable noncontrolling interests
amounting to RMB105.8 million
(US$15.9 million).
Non-GAAP net income in the third quarter of 2017 was
RMB231.8 million (US$34.8 million), representing a 78.5% increase
from the corresponding period in 2016. Non-GAAP basic and diluted
net income per ADS in the third quarter of 2017 amounted to
RMB1.70 (US$0.26) and RMB1.56 (US$0.23),
respectively, taking into consideration the accretion to redeemable
noncontrolling interests amounting to RMB105.8 million (US$15.9
million).
As of September 30, 2017, the
Company had cash and cash equivalents and restricted
cash of RMB6.49 billion
(US$975.0 million). Cash used
in operating activities, cash used in investing activities, and
cash provided by financing activities in the third quarter
of 2017 were RMB46.7 million (US$7.0
million), RMB4.18 billion (US$628.3 million), and RMB5.04 billion (US$757.7
million), respectively.
Accounts receivable, net was RMB2.84 billion (US$427.4
million) as of September 30,
2017, compared to RMB2.07
billion (US$310.9 million) as
of December 31, 2016.
As of September 30, 2017, the
Company's transaction services business had cash and cash
equivalents and restricted cash of RMB3.24
billion (US$487.2 million),
finance receivables of RMB25.30
billion (US$3.80 billion) and
borrowings and nonrecourse securitization debt of RMB22.24 billion (US$3.34
billion).
The number of employees totaled 8,379 as of September 30, 2017, including employees of
entities in which Bitauto has acquired and holds controlling
interests. This represented a 33.8% increase from September 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 September 30, 2017, the
Company had a total of 71,726,025 ordinary shares, with 36,025,744
ADSs issued and outstanding. Each ADS represents one ordinary share
of the Company. Non-GAAP basic and diluted per ADS figures for the
third quarter of 2017 were calculated using a weighted average of
70,080,802 and 78,717,238 ADSs, respectively.
Recent Updates
Bitauto's controlled subsidiary Yixin Group Limited ("Yixin")
(SEHK: 2858), a leading online automobile retail transaction
platform in China, has completed
the global offering of its ordinary shares. Yixin's shares began
trading on the Main Board of The Stock Exchange of Hong Kong
Limited ("HKEx") on November 16, 2017
(Hong Kong time).
The net proceeds from the global offering, after deduction of
the underwriting commission and other estimated expenses in
connection with the global offering and assuming that the
over-allotment option is not exercised, are estimated to be
approximately HK$6,503.5 million. The
net proceeds will be used for implementing Yixin's sales and
marketing initiatives, further enhancing Yixin's research and
technology capabilities, strengthening Yixin's capital resources to
support the ongoing growth of its self-operated financing business,
selectively pursuing acquisitions of or investments in assets and
businesses which are complementary to Yixin's business, as well as
for working capital and other general corporate purposes.
Going forward, Yixin intends to disclose its periodical
financial results under International Financial Reporting
Standards.
Upon the listing, all the then outstanding Yixin preferred
shares were automatically converted into an equal number of
ordinary shares. Yixin preferred shares held by third party
shareholders, which were recorded as redeemable noncontrolling
interests on the Company's consolidated balance sheet, are
reclassified as noncontrolling interests. As a result, the
accretion to redeemable noncontrolling interests for Yixin
preferred shares is no longer be recorded after the listing, or
considered when calculating basic and diluted net profit/loss per
ADS. Yixin's noncontrolling interests' proportionate share of
Yixin's net income will be deducted from the net income
attributable to Bitauto on the Company's consolidated income
statement.
Fourth Quarter 2017 Outlook
Bitauto currently expects to generate revenue in the range of
RMB2.40 billion (US$360.7 million) to RMB2.45 billion (US$368.2 million) in the fourth quarter of
2017, representing a 37.2% to 40.1% increase from the
corresponding period in 2016, or with direct vehicle sales being
excluded, representing a 51.2% to 54.3% 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
7:00 AM on November 20, 2017 U.S. Eastern Time (8:00 PM on November 20,
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:
|
9489208
|
A replay of the conference call may be accessed by phone at the
following number until November 28,
2017:
US:
|
+1-855-452-5696 or
+1-646-254-3697
|
International:
|
+61-2-8199-0299
|
|
|
Conference
ID:
|
9489208
|
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 RMB6.6533 to US$1.00, the
effective noon buying rate as of September 29, 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 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 primarily conducted
by its controlled subsidiary, Yixin Group Limited (SEHK: 2858), a
leading online automobile retail transaction platform in
China, which provides transaction
platform services as well as self-operated financing services.
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 initial public offering of
Yixin. 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 initial public offering of Yixin; (iv)
share of amortization of equity investments' intangible assets not
on their books; (v) investment (income)/loss associated with
non-cash investment matters; (vi) amortization of the BCF discount
on the convertible notes; (vii) fair value adjustment of contingent
considerations; and (viii) tax impact related to professional
expenses incurred for the initial public offering of Yixin.
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
|
|
|
September 30,
2016
|
|
September 30,
2017
|
|
|
RMB
|
|
RMB
|
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,525,217
|
|
2,344,869
|
Cost of
revenue
|
|
(542,856)
|
|
(831,978)
|
Gross
profit
|
|
982,361
|
|
1,512,891
|
|
|
|
|
|
Selling and
administrative expenses
|
|
(888,903)
|
|
(1,787,348)
|
Product development
expenses
|
|
(108,306)
|
|
(156,544)
|
Other gains/(losses),
net
|
|
1,745
|
|
(2,285)
|
Loss from
operations
|
|
(13,103)
|
|
(433,286)
|
|
|
|
|
|
Interest
income
|
|
9,419
|
|
22,105
|
Interest
expense
|
|
(16,429)
|
|
(17,483)
|
Share of results of
equity investees
|
|
(8,162)
|
|
(11,117)
|
Investment
income/(loss)
|
|
4,281
|
|
(31,612)
|
Loss before
tax
|
|
(23,994)
|
|
(471,393)
|
|
|
|
|
|
Income tax
expense
|
|
(23,406)
|
|
(38,851)
|
Net
loss
|
|
(47,400)
|
|
(510,244)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
|
1,644
|
|
2,963
|
Accretion to
redeemable noncontrolling interests
|
|
52,076
|
|
105,757
|
Net loss
attributable to Bitauto Holdings Limited
|
|
(101,120)
|
|
(618,964)
|
|
|
|
|
|
|
|
|
|
|
Other financial
data
|
|
|
|
|
Non-GAAP net
income
|
|
129,914
|
|
231,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP to Non-GAAP results
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
September 30,
2016
|
|
September 30,
2017
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
Loss from
operations
|
|
(13,103)
|
|
(433,286)
|
Share-based
payments
|
|
16,468
|
|
522,014
|
Amortization of
intangible assets resulting from asset and business
acquisitions
|
|
156,344
|
|
169,114
|
Professional expenses
incurred for the initial public offering of Yixin
|
|
-
|
|
8,357
|
Non-GAAP income
from operations
|
|
159,709
|
|
266,199
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(47,400)
|
|
(510,244)
|
Share-based
payments
|
|
16,468
|
|
522,014
|
Amortization of
intangible assets resulting from asset and business
acquisitions
|
|
156,344
|
|
169,114
|
Professional expenses
incurred for the initial public offering of Yixin
|
|
-
|
|
8,357
|
Share of amortization
of equity investments' intangible assets not on their
books
|
|
626
|
|
27
|
Investment
(income)/loss associated with non-cash investment
matters
|
|
(1,284)
|
|
31,987
|
Amortization of the
BCF discount on the convertible notes
|
|
5,160
|
|
8,528
|
Fair value adjustment
of contingent considerations
|
|
-
|
|
3,114
|
Tax impact related to
professional expenses incurred for the initial public offering of
Yixin
|
|
-
|
|
(1,058)
|
Non-GAAP net
income*
|
|
129,914
|
|
231,839
|
|
|
|
|
|
Non-GAAP net
income per ADS
|
|
|
|
|
Basic
|
|
1.08
|
|
1.70
|
Diluted
|
|
1.04
|
|
1.56
|
|
|
|
|
|
* For comparative
purpose, after considering the fair value adjustment of contingent
considerations, Non-GAAP net income for the second quarter of 2017
increased to RMB230,578 thousands, compared to the previously
disclosed amounts.
|
SELECTED
CONSOLIDATED FINANCIAL DATA
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
December 31,
2016
|
|
September 30,
2017
|
|
|
RMB
|
|
RMB
|
|
|
(in
thousands)
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
2,021,989
|
|
3,466,088
|
Time
deposits
|
|
2,000
|
|
-
|
Restricted
cash
|
|
5,475,576
|
|
2,871,002
|
Accounts
receivable, net
|
|
2,068,615
|
|
2,843,471
|
Bills
receivable
|
|
110,236
|
|
209,450
|
Other current
assets
|
|
6,796,543
|
|
11,343,274
|
Non-current
assets
|
|
13,459,797
|
|
21,515,776
|
Total
assets
|
|
29,934,756
|
|
42,249,061
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Accounts
payable
|
|
1,603,577
|
|
1,889,873
|
Other current
liabilities
|
|
10,350,339
|
|
18,681,460
|
Non-current
liabilities
|
|
4,219,129
|
|
7,061,613
|
Total
liabilities
|
|
16,173,045
|
|
27,632,946
|
Redeemable
noncontrolling interests
|
|
3,939,646
|
|
5,270,863
|
Total
equity
|
|
9,822,065
|
|
9,345,252
|
Total liabilities,
redeemable noncontrolling interests and equity
|
|
29,934,756
|
|
42,249,061
|
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content:http://www.prnewswire.com/news-releases/bitauto-announces-third-quarter-2017-results-300559253.html
SOURCE Bitauto Holdings Limited