First quarter revenue increased 52.3%
year-over-year
Revenue from transaction services increased 101.0%
year-over-year
BEIJING, June 13, 2018 /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 first quarter ended March 31, 2018[1].
Bitauto First Quarter 2018 Highlights
- Revenue in the first quarter of 2018 was RMB2.17 billion (US$346.1
million), a 52.3% increase from the corresponding period in
2017.
- Gross profit in the first quarter of 2018 was
RMB1.35 billion (US$215.2 million), a 34.3% increase from the
corresponding period in 2017.
- Loss from operations in the first quarter of 2018 was
RMB313.3 million (US$50.0 million), compared to a loss from
operations of RMB10.9 million
(US$1.7 million) in the corresponding
period in 2017. The increased loss was mainly due to the increased
expenses relating to the Company's marketing efforts and provision
for credit losses of finance receivables.
- Non-GAAP income from operations in the first quarter of
2018 was RMB8.0 million (US$1.3 million), compared to a Non-GAAP income
from operations of RMB223.1 million
(US$35.6 million) in the
corresponding period in 2017.
- Net loss in the first quarter of 2018 was RMB288.3 million (US$46.0
million), compared to a net loss of RMB50.1 million (US$8.0
million) in the corresponding period in 2017.
- Non-GAAP net income in the first quarter of 2018 was
RMB37.1 million (US$5.9 million), compared to a Non-GAAP net
income of RMB156.9 million
(US$25.0 million) in the
corresponding period in 2017.
- Basic and diluted net loss per ADS in the first quarter
of 2018 was RMB2.34 (US$0.37) and RMB2.35 (US$0.37),
respectively.
- Non-GAAP basic and diluted net income per ADS in the
first quarter of 2018 was RMB0.88
(US$0.14) and RMB0.84 (US$0.13),
respectively.
Mr. Andy Zhang, chief executive
officer of Bitauto, said, "We had a strong quarter to start the
year with total revenue growing 52.3% year-over-year to
RMB2.17 billion. Transaction services
revenue continued to expand rapidly at over 100% year-over-year to
reach RMB1.17 billion, supported by
robust growth in transaction volume. At the same time, in line with
our revamping efforts as set out in 2017, our advertising and
subscription business continued its steady growth with revenue up 16.3% year-over-year
to RMB787.5 million."
"In the quarter, we remained dedicated to executing on our three
strategic focuses and have made encouraging progress across all
these areas: synergies between Bitauto and Yixin, integration of
content and user communities, and technology and big data enabled
enhancements. We are confident that by building on these
competitive advantages, we will further strengthen Bitauto as
China's top online auto media and
transaction services ecosystem."
"Given the recent intensifying industry competition, Yixin has
entered into a set of agreements with Yusheng, which is principally
engaged in used automobile transaction business. We believe that
Yixin's cooperation with and investment in Yusheng, together with
support from strategic investors such as Tencent and JD.com, will enable Yusheng to
increase its competitiveness more quickly and be better positioned
to benefit from the growth
potential of China's used
automobile market. At the same time, Yusheng will give Yixin
preferred cooperation rights for used car financing, which will
strengthen Yixin's core competency in financed auto transactions
business."
Ms. Cynthia He, chief financial
officer of Bitauto, said, "Given Yixin's scale and significance to
Bitauto, we have provided a set of Yixin's first quarter operating
highlights as supplemental information. With regard to provisions
for credit losses of finance receivables, the current U.S. GAAP
standard applicable to Bitauto follows an "incurred loss" model
while IFRS 9, the newly effective IFRS standard applicable to
Yixin, follows an "expected loss" model for its stand-alone
consolidated financial statements; the latter is expected to yield
more stringent results than the former, as it requires the
assessment of provision for all finance receivables, including
those that have not become past due. As of March
31, 2018, our balance of provision for credit losses under
U.S. GAAP was RMB275.0 million and a
total of RMB179.4 million was
recorded as expenses in the first quarter of 2018. While under
IFRS, based on our current estimate, which is subject to further
changes, the balance of provision for credit losses was
RMB416.0 million as of March 31, 2018, and a total of RMB130.0 million was recorded as expenses in the
first quarter of 2018. As a result of the adoption of IFRS 9 in
2018, the retrospective impact as of December 31, 2017 would be recorded in equity on
Yixin's consolidated balance sheet."
Adoption of New Revenue Guidance ASC 606
In May 2014, the FASB issued a new
revenue guidance ASC Topic 606, "Revenue from Contracts with
Customers." Bitauto has completed its assessment and noted the most
significant impact is the change from presentation of value-added
tax ("VAT") on a gross basis to a net basis. Bitauto adopted the
new revenue guidance starting from January
1, 2018 by applying the modified retrospective approach.
Therefore, operating results for reporting periods beginning
after January 1, 2018 are presented under Topic 606,
while prior period amounts are not restated and continue to be
reported in accordance with the Company's historic accounting
method under Topic 605.
To provide investors with a meaningful year-over-year
comparison, Bitauto has provided a reconciliation table for the
impact of adopting this new revenue guidance for the first quarter
of 2018 and the corresponding period in 2017. Other than in the
Company's consolidated statements of operations, the operating
results are discussed and analyzed under the new revenue guidance,
including those for the comparative period in 2017.
|
|
For the Three
Months Ended March 31, 2018
|
|
|
Under ASC
605
|
VAT
adjustments
|
Under ASC
606
|
|
|
RMB
|
RMB
|
RMB
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
2,335,492
|
(164,347)
|
2,171,145
|
- Advertising
and subscription business
|
|
849,360
|
(61,899)
|
787,461
|
- Transaction
services business
|
|
1,261,055
|
(88,658)
|
1,172,397
|
- Digital
marketing solutions business
|
|
225,077
|
(13,790)
|
211,287
|
|
|
|
|
|
Cost of
revenue
|
|
(969,940)
|
148,554
|
(821,386)
|
Gross
profit
|
|
1,365,552
|
(15,793)
|
1,349,759
|
|
|
|
|
|
Loss from
operations
|
|
(313,327)
|
-
|
(313,327)
|
|
|
|
|
|
Net
loss
|
|
(288,284)
|
-
|
(288,284)
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31, 2017
|
|
|
Under ASC
605
|
VAT
adjustments
|
Under ASC
606
|
|
|
RMB
|
RMB
|
RMB
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,545,442
|
(120,315)
|
1,425,127
|
- Advertising
and subscription business
|
|
744,870
|
(68,022)
|
676,848
|
- Transaction
services business
|
|
625,811
|
(42,401)
|
583,410
|
- Digital
marketing solutions business
|
|
174,761
|
(9,892)
|
164,869
|
|
|
|
|
|
Cost of
revenue
|
|
(519,007)
|
98,983
|
(420,024)
|
Gross
profit
|
|
1,026,435
|
(21,332)
|
1,005,103
|
|
|
|
|
|
Loss from
operations
|
|
(10,896)
|
-
|
(10,896)
|
|
|
|
|
|
Net
loss
|
|
(50,113)
|
-
|
(50,113)
|
|
|
|
|
|
|
|
|
|
|
Bitauto First Quarter 2018 Results
Bitauto reported revenue of RMB2.17 billion (US$346.1
million) for the first quarter of 2018, representing a 52.3%
increase from the corresponding period in 2017. The increase in
revenue was attributable to the growth of all three of the
Company's revenue segments including transaction services business,
advertising and subscription business and digital marketing
solutions business.
- Revenue from the advertising and subscription business
for the first quarter of 2018 was RMB787.5
million (US$125.5 million),
representing a 16.3% increase from RMB676.8
million (US$107.9 million) in
the corresponding period in 2017.
- Revenue from the transaction services business for the
first quarter of 2018 was RMB1.17
billion (US$186.9 million),
representing a 101.0% increase from RMB583.4
million (US$93.0 million) in
the corresponding period in 2017, primarily driven by the fast
growth of transaction volume.
- Revenue from the digital marketing solutions business
for the first quarter of 2018 was RMB211.3
million (US$33.7 million),
representing a 28.2% increase from RMB164.9
million (US$26.3 million) in
the corresponding period in 2017.
Cost of revenue for the first quarter of 2018 was
RMB821.4 million (US$130.9 million), representing a year-over-year
increase of 95.6% from the corresponding period in 2017. The
increase was primarily due to increased funding costs related to
the growth of transaction services. Cost of revenue as a percentage
of revenue in the first quarter of 2018 was 37.8%, compared to
29.5% in the corresponding period in 2017.
Gross profit for the first quarter of 2018 was
RMB1.35 billion (US$215.2 million), representing a 34.3% increase
from the corresponding period in 2017.
Selling and administrative expenses were RMB1.51 billion (US$240.8
million) for the first quarter of 2018, representing a 64.0%
increase from the corresponding period in 2017. This increase was
primarily attributable to an increase in expenses relating to the
Company's marketing efforts, provision for credit losses of finance
receivables, and headcount and related expenses.
Product development expenses were RMB160.4 million (US$25.6
million) for the first quarter of 2018, representing a 37.3%
increase from the corresponding period in 2017. The increase was
primarily due to increases in product development headcount and
related expenses.
Share-based compensation, which was allocated to related
operating expense line items, was RMB150.1
million (US$23.9 million) in
the first quarter of 2018, compared to RMB65.2 million (US$10.4
million) in the corresponding period in 2017. The increase
was mainly due to options granted by Yixin Group Limited ("Yixin")
(SEHK: 2858) to its employees in the third quarter of 2017.
Loss from operations in the first quarter of 2018 was
RMB313.3 million (US$50.0 million), compared to a loss from
operations of RMB10.9 million
(US$1.7 million) in the corresponding
period in 2017.
Non-GAAP income from operations in the first quarter of
2018 was RMB8.0 million (US$1.3 million), compared to a Non-GAAP income
from operations of RMB223.1 million
(US$35.6 million) in the
corresponding period in 2017.
Income tax benefit in the first quarter of 2018 was
RMB12.5 million (US$2.0 million), compared to an income tax
expense of RMB59.3 million
(US$9.5 million) in the corresponding
period in 2017. The income tax benefit mainly arose from net
operating loss for certain subsidiaries.
Net loss in the first quarter of 2018 was RMB288.3 million (US$46.0
million), compared to a net loss of RMB50.1 million (US$8.0
million) in the corresponding period in 2017. Basic and
diluted net loss per ADS, each representing one ordinary share, in
the first quarter of 2018 amounted to RMB2.34 (US$0.37)
and RMB2.35 (US$0.37), respectively, taking into
consideration of the accretion to redeemable noncontrolling
interests amounting to RMB6.9 million
(US$1.1 million).
Non-GAAP net income in the first quarter of 2018 was
RMB37.1 million (US$5.9 million), compared to a Non-GAAP net
income of RMB156.9 million
(US$25.0 million) in the
corresponding period in 2017. Non-GAAP basic and diluted net income
per ADS in the first quarter of 2018 amounted to RMB0.88 (US$0.14)
and RMB0.84 (US$0.13), respectively, taking into
consideration of the accretion to redeemable noncontrolling
interests amounting to RMB6.9 million
(US$1.1 million).
As of March 31, 2018, the Company
had cash and cash equivalents and restricted cash of
RMB10.21 billion (US$1.63 billion). Cash provided by operating
activities, cash used in investing activities, and cash provided by
financing activities in the first quarter of 2018 were
RMB181.8 million (US$29.0 million), RMB4.17
billion (US$664.3 million),
and RMB3.35 billion (US$534.5 million), respectively.
The number of employees totaled 8,962 as of March 31, 2018, including employees of entities
in which Bitauto has acquired and holds controlling interests. This
represented a 17.0% year-over-year increase, primarily due to the
increase of personnel in the Company's fast-growing transaction
services business and more headcount in product development.
As of March 31, 2018, the Company
had a total of 72,739,966 ordinary shares, with 37,439,685 ADSs
issued and outstanding. Each ADS represents one ordinary share of
the Company. Non-GAAP basic and diluted per ADS figures for the
first quarter of 2018 were calculated using a weighted average of
72,294,688 and 79,049,160 ADSs, respectively.
Yixin First Quarter 2018 Highlights
In the first quarter of 2018, Bitauto's controlled subsidiary
Yixin, the primary operator of the Company's transaction services
business, facilitated over 110,000 financed automobile
transactions, through its loan facilitation services and its
self-operated financing services.
In the first quarter of 2018, under U.S. GAAP, Yixin's total
revenues reached RMB1.23 billion
(US$195.8 million); gross profit
reached RMB598.7 million
(US$95.5 million); net loss was
RMB221.4 million (US$35.3 million) and Non-GAAP net loss was
RMB62.3 million (US$9.9 million). Yixin's
Non-GAAP net loss is calculated by net loss excluding share-based
compensation of RMB109.8 million
(US$17.5 million), amortization of
intangible assets resulting from asset and business acquisitions of
RMB49.9 million (US$7.9 million), and offset by tax effect of
RMB0.5 million (US$0.1 million). In the first quarter of
2018, Yixin entered into certain transactions with other
subsidiaries of Bitauto, which have been eliminated upon Bitauto's
consolidation of Yixin. The revenue Yixin recorded for the services
provided to those subsidiaries of Bitauto amounted to RMB29.3 million (US$4.7
million).
As of March 31, 2018, Yixin had
cash and cash equivalents and restricted cash of RMB5.44 billion (US$867.5
million), total finance receivables of RMB33.81 billion (US$5.39
billion), and total borrowings (including bank borrowings
and asset-backed securitization debt) of RMB28.49 billion (US$4.54
billion).
As of March 31, 2018, Yixin's 30+
days past due ratio, 90+ days past due ratio, and 180+ days past
due ratio was 1.45%, 0.93%, and 0.39%, respectively.
Management Change
Bitauto today also announced the appointment of Mr. Ming Xu as the chief financial officer of the
Company (the "CFO"), succeeding Ms. Cynthia
He, who will remain with the Company in the coming weeks to
ensure a smooth transition.
Commenting on the new appointment, Mr. Andy Zhang, stated, "We are delighted that Ming
will be joining us as our chief financial officer. Given his deep
familiarity with China's internet
and automobile industries and his rich capital markets experience,
I am confident that Ming will be a valuable addition to our
management team. We also greatly appreciate Cynthia's contributions
over the past two years through various milestones and wish her the
best in her future endeavours."
Mr. Xu joins Bitauto from UBS AG, where he covered U.S.- and
Hong Kong-listed Chinese internet
companies since 2014 and most recently served as the Co-Head of its
Hong Kong and China Internet
Research. Prior to that, Mr. Xu worked in the China Auto Research
team of UBS AG from 2011 to 2014, responsible for the coverage of
Hong Kong-listed automakers,
dealers and auto component makers. Before joining UBS AG, Mr. Xu
worked in Nomura Holdings from 2008 to 2011 and in Lehman Brothers
in 2008, where he also covered the China automobile industry. Mr. Xu holds a
master's degree in economics and a bachelor's degree in finance,
both from Fudan University.
Recent Updates
- Change of government supervision authority
The Ministry of Commerce of the People's Republic of China
recently announced that effective April 20,
2018, the China Banking and Insurance Regulatory Commission would take over the function of
supervising financial lease companies. Following this announcement,
Bitauto expects stricter regulatory supervision over its financial
lease business and has thus adopted a set of more stringent
delinquency management methods for monitoring the asset quality of
its finance receivables.
- Provision for credit losses of finance receivables
Bitauto reviews the quality of its finance receivables at each
balance sheet date through past due ratio based on the nature of
relevant business activities and industry practice. In accordance
with U.S. GAAP, Bitauto currently applies an "incurred loss" model
which assesses the provision for credit losses of finance
receivables that have become past due based on estimates of the
respective loss probability derived from historical experience. A
new guidance ASC Topic 326, "Financial Instruments-Credit Losses,"
will be effective for fiscal years, and interim periods within
those fiscal years, beginning after December
15, 2019. Early application will be permitted for all
entities for fiscal years, and interim periods within those fiscal
years, beginning after December 15,
2018. ASC Topic 326 introduces a new model to assess the
provision for credit losses of finance receivables. While Bitauto
is currently evaluating the impact ASC 326 will have on its
consolidated financial statements, it is generally expected that
the adoption will likely increase the level of provision for credit
losses of finance receivables. Under U.S. GAAP, Yixin's provision
for credit losses of finance receivables in the first quarter of
2018 was RMB179.4 million
(US$28.6 million), and the balance of
provision for credit losses of finance receivables was RMB275.0 million (US$43.8
million) as of March 31, 2018.
These measures reflected management's best estimates of credit
losses of finance receivables, taking into consideration all
currently available information and expectation of asset
quality.
As Bitauto's controlled subsidiary listed on the Hong Kong Stock
Exchange, Yixin prepares its consolidated financial statements
under IFRS. Under IFRS, in prior periods, Yixin also applied the
"incurred loss" model to assess the provision for credit losses on
finance receivables that have become past due, which would reach
the same results as under U.S. GAAP. However, commencing on
January 1, 2018, Yixin adopted the
new standard IFRS 9 Financial Instruments, which introduces an
"expected credit losses" model to assess the provision for credit
losses. According to the new standard, Yixin incorporates both
available forward-looking information and historical patterns to
estimate the expected credit losses for all finance receivables,
including those that have not become past due. Yixin adopted the
new standard by applying the retrospective approach, and the
accumulated impact on provisions for credit losses as of
December 31, 2017 would be recorded
in equity on Yixin's consolidated balance sheet.
Under IFRS, Yixin's provision for credit losses of finance
receivables in the first quarter of 2018 was estimated to be
RMB130.0 million (US$20.7 million), and the balance of provision
for credit losses was estimated to be RMB416.0 million (US$66.3
million) as of March 31, 2018.
These estimates are based on assumptions, judgments and estimation
techniques that remain subject to change until Yixin finalizes its
financial statements for the year ended December 31, 2018.
Going forward, when assessing the provision for credit losses on
finance receivables, the "incurred loss" model will continue to be
used by Bitauto before adoption of ASC Topic 326 under U.S. GAAP
while the "expected credit losses" model will be used by Yixin
under IFRS. This will yield a GAAP difference between the
provisions for credit losses recognized in consolidated financial
statements of Bitauto and Yixin, as illustrated and compared in
this announcement. Bitauto is currently evaluating the impact of
the adoption of ASC Topic 326.
- Yixin's subscription for the convertible note, the business
cooperation agreement, and the framework agreement with
Yusheng
On June 13, 2018, Yixin entered
into the convertible note purchase agreement, the business
cooperation agreement, and the framework agreement with Yusheng
Holdings Limited ("Yusheng").
Pursuant to the convertible note purchase agreement, Yusheng
agreed to issue to Yixin an interest-free convertible note with a
term of 20 years in the principal amount of US$260 million for a consideration of (i)
provision of the cooperation to Yusheng and/or its affiliates
pursuant to the terms of the business cooperation agreement, and
(ii) a cash consideration of US$21
million. The convertible note is interest free and
convertible into 13 million non-voting Series Pre-A preferred
shares at the conversion price of US$20.00. Assuming full conversion, the Series
Pre-A preferred shares convertible under the convertible note
will represent an interest of
approximately 40.63% in the share capital of Yusheng assuming full
subscription of the Series A-1 and Series A-2 preferred shares
certain under the investors under
the securities subscription
agreement and that all the equity
securities which Yusheng intends to reserve for issuance pursuant
to its future the employee equity
incentive plan have been issued.
Pursuant to the business cooperation agreement, Yixin shall provide the cooperation to Yusheng
and/or its affiliates for a term of 20 years from the date of the
business cooperation agreement. For the avoidance of doubt, actions
in connection with respect to such cooperation include (i) Yixin
shall provide certain traffic support in relation to the used
automobile transaction business to Yusheng and/or its affiliates;
(ii) Yixin shall provide certain automobile database related
services to Yusheng and/or its affiliates on a non-exclusive basis;
and (iii) Yixin shall not engage in, invest in, own, manage,
operate or provide assistance to businesses that may compete with
the used automobile transaction business during the term of the
business cooperation agreement or until Yixin holds less than 10%
equity interest in Yusheng on an as converted and fully diluted
basis, which ever comes earlier.
Pursuant to the framework agreement and
the asset transfer agreement, Yusheng agreed to purchase
from Yixin, either directly or through its affiliates, certain
fixed and intangible assets relating
to the used automobile transaction business of Yusheng,
including the Taoche App and
taoche.com, for an aggregate purchase price of US$20 million of RMB equivalent (exclusive any PRC tax).
Yixin understands that contemporaneous with its execution of the
above-mentioned agreements with Yusheng, Yusheng also entered into
a securities subscription agreement with certain other investors,
including entities affiliated with Tencent and JD.com, pursuant to which Yusheng
agreed to issue, and those investors agreed to subscribe for and/or
have the option to subscribe for the
Series A-1 and Series A-2 preferred shares. Pursuant to the securities subscription agreement,
each of Tencent and JD.com
holds no interest in Yusheng as of the
date of this announcement and will hold less than 30% voting
interests in Yusheng.
Second Quarter 2018 Outlook
Bitauto currently expects to generate revenue in the range of
RMB2.47 billion (US$393.8 million) to RMB2.52 billion (US$401.7 million) in the second quarter of
2018, representing a 23.8% to 26.3% increase from the
corresponding period in 2017.
This forecast reflects revenues net of VAT under the new revenue
guidance ASC Topic 606, which has been adopted by Bitauto starting
from January 1, 2018. If presented on
gross basis, as consistent with in year 2017, forecasted revenues
would be between RMB2.66 billion
(US$424.1 million) to
RMB2.71 billion (US$432.0 million) in the second quarter of
2018, representing a 22.5% to 24.9% increase from the
corresponding period in 2017.
This forecast takes into consideration of 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 June 13, 2018 U.S. Eastern Time (8:00 PM on June 13,
2018 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:
|
6085859
|
A replay of the conference call may be accessed by phone at the
following number until June 21,
2018:
US:
|
+1-855-452-5696 or
+1-646-254-3697
|
International:
|
+61-2-8199-0299
|
Conference
ID:
|
6085859
|
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 RMB6.2726 to US$1.00, the
effective noon buying rate as of March 30, 2018 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's business consists of three segments:
advertising and subscription business, transaction services
business and digital marketing solutions business.
Bitauto's advertising and subscription business provides a
variety of advertising services to automakers through the
bitauto.com website and corresponding mobile apps. The website and
mobile apps provide consumers with up-to-date automobile pricing
and promotional information, specifications, reviews and consumer
feedback. Bitauto also provides transaction-focused online
advertisements and promotional services to its business partners
via Yixin's online platform for automakers, automobile dealers,
auto finance partners and insurance companies. Bitauto offers
subscription services via its SaaS platform, which provides
web-based and mobile-based integrated digital marketing solutions
to automobile dealers in China.
The SaaS platform enables automobile dealer subscribers to create
their own online showrooms, list pricing and promotional
information, provide automobile 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, advertising agent services, big data
applications and digital image creation.
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, and uses Yixin's
Non-GAAP net loss as Non-GAAP financial measures to supplement the
disclosure of financial performance of Yixin. Non-GAAP income from
operations is defined as income from operations excluding (i)
share-based compensation; (ii) amortization of intangible assets
resulting from asset and business acquisitions. Non-GAAP net income
is defined as net income excluding (i) share-based compensation;
(ii) amortization of intangible assets resulting from asset and
business acquisitions; (iii) share of amortization of equity
investments' intangible assets not on their books; (iv) investment
income associated with non-cash investment matters; (v)
amortization of the BCF discount on the convertible notes; and (vi)
tax effect of Non-GAAP line items. 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. Yixin's Non-GAAP net loss
is defined as net loss excluding (i) share-based compensation; (ii)
amortization of intangible assets resulting from asset and business
acquisitions; and (iii) tax effect of Non-GAAP line items. 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 or Yixin 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
|
|
|
March 31, 2017
*
|
|
March 31,
2018
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
(in thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,545,442
|
|
2,171,145
|
Cost of
revenue
|
|
(519,007)
|
|
(821,386)
|
Gross
profit
|
|
1,026,435
|
|
1,349,759
|
|
|
|
|
|
Selling and
administrative expenses
|
|
(920,996)
|
|
(1,510,233)
|
Product development
expenses
|
|
(116,840)
|
|
(160,435)
|
Other gains,
net
|
|
505
|
|
7,582
|
Loss from
operations
|
|
(10,896)
|
|
(313,327)
|
|
|
|
|
|
Interest
income
|
|
15,726
|
|
29,544
|
Interest
expense
|
|
(18,592)
|
|
(12,112)
|
Share of results of
equity investees
|
|
(13,359)
|
|
(10,857)
|
Investment
income
|
|
36,323
|
|
6,000
|
Profit/(Loss)
before tax
|
|
9,202
|
|
(300,752)
|
|
|
|
|
|
Income tax
(expense)/benefit
|
|
(59,315)
|
|
12,468
|
Net
loss
|
|
(50,113)
|
|
(288,284)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests
|
|
(13,054)
|
|
(127,638)
|
Accretion to
redeemable noncontrolling interests
|
|
80,312
|
|
6,918
|
Net loss
attributable to Bitauto Holdings Limited
|
|
(117,371)
|
|
(167,564)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
data
|
|
|
|
|
Non-GAAP net
income
|
|
156,940
|
|
37,059
|
Non-GAAP net loss
attributable to noncontrolling interests
|
|
(9,395)
|
|
(37,081)
|
Accretion to
redeemable noncontrolling interests
|
|
80,312
|
|
6,918
|
Non-GAAP net
income attributable to Bitauto Holdings Limited
|
|
86,023
|
|
67,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP to Non-GAAP results
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
March 31,
2017
|
|
March 31,
2018
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(10,896)
|
|
(313,327)
|
Share-based
compensation
|
|
65,153
|
|
150,141
|
Amortization of
intangible assets resulting from asset and business
acquisitions
|
|
168,839
|
|
171,149
|
Non-GAAP income
from operations
|
|
223,096
|
|
7,963
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(50,113)
|
|
(288,284)
|
Share-based
compensation
|
|
65,153
|
|
150,141
|
Amortization of
intangible assets resulting from asset and business
acquisitions
|
|
168,839
|
|
171,149
|
Share of amortization
of equity investments' intangible assets not on their
books
|
|
626
|
|
-
|
Investment income
associated with non-cash investment matters
|
|
(36,323)
|
|
-
|
Amortization of the
BCF discount on the convertible notes
|
|
8,758
|
|
7,116
|
Tax effect of
Non-GAAP line items
|
|
-
|
|
(3,063)
|
Non-GAAP net
income
|
|
156,940
|
|
37,059
|
|
|
|
|
|
Non-GAAP net
income per ADS
|
|
|
|
|
Basic
|
|
1.22
|
|
0.88
|
Diluted
|
|
1.09
|
|
0.84
|
|
|
|
|
|
|
|
|
|
|
*The operating
results for the first quarter of 2017 are not restated and are
presented on a gross basis under Topic 605, while those for the
first quarter of
2018 are presented on a net basis under Topic 606.
|
SELECTED
CONSOLIDATED FINANCIAL DATA
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
December 31,
2017
|
|
March 31,
2018
|
|
|
RMB
|
|
RMB
|
|
|
Audited
|
|
Unaudited
|
|
|
(in
thousands)
|
|
|
|
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
9,555,027
|
|
9,161,587
|
Restricted
cash
|
|
811,596
|
|
390,418
|
Accounts
receivable, net
|
|
2,854,410
|
|
2,464,778
|
Other current
assets
|
|
14,896,336
|
|
17,280,247
|
Non-current
assets
|
|
23,398,363
|
|
25,274,149
|
Total
assets
|
|
51,515,732
|
|
54,571,179
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Accounts
payable
|
|
2,176,627
|
|
2,028,172
|
Other current
liabilities
|
|
20,522,612
|
|
22,704,631
|
Non-current
liabilities
|
|
8,578,822
|
|
9,915,682
|
Total
liabilities
|
|
31,278,061
|
|
34,648,485
|
Redeemable
noncontrolling interests
|
|
301,953
|
|
338,871
|
Total
equity
|
|
19,935,718
|
|
19,583,823
|
Total liabilities,
redeemable noncontrolling
interests and equity
|
|
51,515,732
|
|
54,571,179
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/bitauto-announces-first-quarter-2018-results-300665508.html
SOURCE Bitauto Holdings Limited