Financial Performance - In 2020, the company achieved new car sales of 36,573 units, representing a year-on-year growth of 11.5%, surpassing the industry average growth rate[15]. - Total revenue reached RMB 15.09 billion, an increase of 16.8% compared to the previous year[15]. - The net profit (excluding non-recurring items) was RMB 506.3 million, reflecting a year-on-year growth of 31.3%[15]. - The net cash generated from operating activities was RMB 779.5 million, a significant increase of 239.0% year-on-year[15]. - The total sales volume for the group in 2020 was 36,573 vehicles, representing a year-on-year increase of 11.5% compared to 2019[35]. - The group's revenue for 2020 was RMB 14,746.9 million, an increase of 16.8% from RMB 12,621.8 million in 2019[41]. - New car sales revenue reached RMB 12,893.0 million, growing by 18.2% compared to 2019[41]. - The gross profit for 2020 was RMB 1,298.8 million, up 19.5% from RMB 1,087.1 million in 2019[43]. - The gross margin for 2020 was 8.8%, an increase of 0.2% from 8.6% in 2019[45]. - The net profit attributable to the company's owners for 2020 was RMB 410.7 million, with a 32.7% increase in net profit excluding non-recurring items[49]. Operational Efficiency - Inventory turnover days decreased to 32 days, down by 5 days compared to the previous year[15]. - The average inventory turnover days decreased to 32 days in 2020, down by 5 days from 2019, indicating improved inventory management[54]. - The company aims to optimize its dealer network and improve efficiency through digitalization and better inventory management, focusing on core business growth[32]. - The company emphasizes performance and capability as its core operational principles, aiming to enhance shareholder value and societal contributions[24]. - The company is committed to deep reforms in organizational structure, budget targets, and performance compensation to improve operational efficiency[24]. Market Expansion and Strategy - The company expanded its network by adding 10 new outlets in 2020, including 5 BMW, 3 Bentley, 1 Ferrari, and 1 Lincoln outlet, primarily in new first-tier and second-tier cities[15]. - The company plans to achieve mass production of its electric vehicles by the first quarter of 2022, with current annual production capacity at 150,000 units, expandable to 300,000 units[18]. - The company has established strategic partnerships with 10 brands, including NIO, Tesla, and Xpeng, for its after-sales service network, which currently has 50 locations nationwide[18]. - The company focuses on luxury and ultra-luxury brand 4S store operations, achieving significant growth in this segment[18]. - The company’s long-term strategy involves a dual-wing approach, focusing on both luxury vehicle sales and the development of electric vehicle manufacturing and after-sales services[18]. - The company plans to open new outlets for BMW, Lexus, and Ferrari, primarily in first and second-tier cities in China, to enhance market presence[32]. - The group plans to continue expanding into the new energy vehicle sector, including strategic investments in brands like Byton and Dangdang[36]. Industry Trends - In 2020, China's overall passenger car sales were 21 million units, a year-on-year decline of 6.8%, marking the third consecutive year of decline since 2018[27]. - Luxury brand retail sales in China reached 2.5 million units in 2020, an increase of 14.7% compared to 2019, highlighting a strong growth segment in the market[27]. - The penetration rate of electric vehicles in China was approximately 6% by the end of 2020, with a target of 20% by 2025 as per the government's "14th Five-Year Plan"[29]. - The post-pandemic era is expected to drive consumption upgrades in China, fueling growth in the luxury car market, which is seen as a key growth driver for the company[33]. Governance and Compliance - The board of directors has complied with the listing rules regarding the appointment of at least three independent non-executive directors, ensuring proper governance standards[75]. - The audit committee held four meetings during the year ending December 31, 2020, to review interim and annual financial performance and reports[87]. - The remuneration committee conducted two meetings in the year ending December 31, 2020, to review the compensation of executive directors and senior management[89]. - The nomination committee is responsible for reviewing the composition of the board and providing recommendations for board diversity, considering factors such as gender, age, and professional experience[91]. - The company emphasizes the importance of continuous professional development for directors to ensure informed contributions to the board[83]. - The audit committee includes three independent non-executive directors, ensuring oversight of financial reporting and internal controls[87]. - The company has established a board diversity policy to support strategic goals and sustainable development[91]. - The remuneration committee's main responsibilities include reviewing the compensation policies for all directors and senior management[89]. - The nomination committee evaluates candidates for board positions based on qualifications, skills, and experience relevant to the company's business strategy[92]. - The company provides training and reading materials to all directors to ensure they are familiar with their responsibilities under listing rules[82]. - The board has established three committees: audit, remuneration, and nomination, each with defined written terms of reference[84]. - The company’s independent auditor confirmed no significant uncertainties affecting the company's ability to continue as a going concern[105]. - The board believes that the current risk management and internal control systems are effective and sufficient[110]. - The company established a three-tier risk control structure to implement internal control and risk management policies[112]. - The audit committee conducted a review of the effectiveness of the company's risk management and internal control systems during the year[110]. - The company has a dedicated internal audit department responsible for monitoring internal governance and conducting regular audits[110]. Shareholder Relations - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[117]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[122]. - The company has adopted a dividend policy but does not have a preset payout ratio, allowing the board to propose dividends based on financial conditions and other factors[122]. - The board of directors and committee chairs will attend the annual general meeting to engage with shareholders and address their inquiries[122]. - The company maintains a website that provides updates on financial information, corporate governance, and other relevant data[122]. - The company has not made any changes to its articles of association for the year ending December 31, 2020[122]. Employee and Supplier Relations - The company emphasizes the importance of employees as its most valuable asset, providing competitive salaries and a favorable work environment to retain talent[171]. - The company conducts performance assessments of suppliers to ensure quality and promote continuous improvement[170]. - The company maintains long-term stable relationships with major automotive suppliers, including luxury brands such as BMW, Maserati, and Ferrari, ensuring stable business development[170]. - The largest supplier of the company has been in a business relationship for over 15 years, indicating strong supplier stability[174]. - The company does not rely on any single customer, diversifying its customer base to mitigate risks[173]. - The company has a stock option plan established in June 2015, aimed at attracting and retaining talented employees by offering them the opportunity to purchase shares[185]. - The company regularly reviews its salary policies based on employee performance and profitability, providing bonuses to encourage contributions[171]. Stock Options and Share Issuance - The total number of stock options granted was 82,631,000, with 4,940,000 exercised during the year[190]. - As of December 31, 2020, 22,675,000 stock options remained unexercised from the total granted[190]. - The exercise price for the stock options granted on May 9, 2017, was HKD 3.00 per share[190]. - The stock options granted on December 17, 2019, total 20,000,000, with a vesting period starting from February 16, 2020[194]. - 32,400,000 stock options were canceled on April 7, 2020, and October 9, 2020, both with an exercise price of HKD 3.00[195]. - The company’s stock option plan allows for the granting of options to eligible employees and directors, with specific terms outlined[193].

Financial Performance - In 2020, the company achieved new car sales of 36,573 units, representing a year-on-year growth of 11.5%, surpassing the industry average growth rate[14]. - Total revenue reached RMB 15.09 billion, an increase of 16.8% compared to the previous year[14]. - The net profit (excluding non-recurring items) was RMB 5.063 billion, reflecting a year-on-year growth of 31.3%[14]. - The net cash generated from operating activities was RMB 7.795 billion, a significant increase of 239.0% year-on-year[14]. - The group’s capital expenditure for 2020 was RMB 404.6 million, primarily for new sales network establishment[52]. - The company’s net profit attributable to shareholders was RMB 410.7 million for 2020, a 32.7% increase compared to the previous year[48]. - Revenue for 2020 was RMB 14,746.9 million, a growth of 16.8% from RMB 12,621.8 million in 2019[40]. - The group’s gross profit for 2020 was RMB 1,298.8 million, up 19.5% from RMB 1,087.1 million in 2019[42]. - The gross margin improved to 8.8% in 2020, compared to 8.6% in 2019[44]. Market Expansion and Strategy - The company expanded its network by adding 10 new outlets, including 5 BMW, 3 Bentley, 1 Ferrari, and 1 Lincoln, primarily in new first-tier and second-tier cities in China[14]. - The company plans to achieve mass production of its electric vehicles by the first quarter of 2022, with current annual production capacity at 150,000 units, expandable to 300,000 units[17]. - The company is focusing on expanding its business into western and eastern China to tap into new car and replacement demand[31]. - The company plans to open new outlets for BMW, Lexus, and Ferrari, primarily in first and second-tier cities in China[31]. - The company aims to enhance operational efficiency and profitability through digitalization and improved inventory and customer relationship management[31]. - The company plans to continue expanding into the new energy vehicle sector, including strategic investments in brands like Byton and Dangdang[35]. Industry Context - In 2020, China's overall passenger car sales were 21 million units, a year-on-year decline of 6.8%, marking the third consecutive year of decline since 2018[26]. - Luxury brand retail sales in China reached 2.5 million units in 2020, an increase of 14.7% compared to 2019, highlighting a strong growth segment[26]. - The penetration rate of electric vehicles in China was approximately 6% by the end of 2020, with a target of reaching 20% by 2025 according to the government's "14th Five-Year Plan"[28]. Corporate Governance - The board of directors has complied with the corporate governance code and maintained high standards of corporate governance throughout the year[67]. - The audit committee held four meetings during the year ending December 31, 2020, to review interim and annual financial performance and reports[86]. - The remuneration committee conducted two meetings in the year ending December 31, 2020, to review the compensation of executive directors and senior management[88]. - The nomination committee is responsible for reviewing the composition of the board and providing recommendations for board member diversity, including factors such as gender and professional experience[90]. - The company emphasizes the importance of continuous professional development for directors to ensure informed contributions to the board[82]. - The audit committee includes three independent non-executive directors, ensuring oversight of financial reporting and internal controls[86]. Risk Management - The company faces interest rate risk due to fluctuations in debt interest rates, which could adversely affect financial expenses and profitability[59]. - The company has established a three-tier risk control structure to implement internal control and risk management policies[111]. - The board believes that the current risk management and internal control systems are effective and adequate[109]. - The company has faced major risks and uncertainties during the year, which were discussed in the business review section of the annual report[143]. Employee Relations - The company emphasizes employee relations, providing competitive salaries and a favorable work environment to enhance retention and productivity[170]. - The group employed a total of 4,206 employees as of December 31, 2020, compared to 3,589 employees in 2019, indicating business expansion[63]. - Employee costs for 2020 were approximately RMB 352.8 million, down from RMB 380.2 million in 2019, which included employee equity awards of RMB 26.2 million and RMB 85.6 million respectively[63]. - The company has a stock option plan established in June 2015, aimed at attracting and retaining talented employees[184]. Shareholder Communication - The company is committed to continuous communication with shareholders through various platforms, including the annual general meeting and its website[121]. - The annual general meeting provides an opportunity for the board to communicate with shareholders, with the chairman and committee heads present to address inquiries[121]. - The company ensures that all significant independent matters are presented as independent resolutions at the shareholders' meeting[115]. - The company has a policy to ensure that no insider information is disclosed to the public without board approval[112]. Financial Instruments and Capital Structure - The group has not utilized any derivative financial instruments to hedge its foreign exchange risk exposure[62]. - As of December 31, 2020, the total bank loans and other borrowings of the group amounted to RMB 2,604.4 million, representing a year-on-year increase of 4.4% compared to RMB 2,493.7 million as of December 31, 2019[55]. - The capital-to-debt ratio of the group as of December 31, 2020, was 38.9%, an increase of 3.0% from the ratio as of December 31, 2019[56]. - The company has adopted a dividend policy without a preset payout ratio, allowing the board to propose dividends based on financial conditions and other factors[121].

Economic Performance - In the first half of 2020, China's GDP growth rate dropped to -1.6%, with a recovery of 3.2% in Q2 compared to Q1[8]. - The contribution rate of final consumption expenditure to economic growth in 2019 was 57.8%, indicating strong domestic demand potential[11]. - The automotive industry remains a pillar of the national economy, with a focus on stabilizing and expanding automobile consumption[11]. Automotive Sales and Market Trends - The retail sales of passenger cars in China decreased by 22.5% year-on-year, totaling 7.7 million units in the first half of 2020[8]. - The luxury car market showed a V-shaped recovery, with retail sales increasing by 1% year-on-year, reaching 1.05 million units[8]. - The luxury car segment is increasingly favored by consumers, with a significant rise in purchasing intent observed post-COVID-19[9]. - The penetration rate of automotive financial loans is increasing, lowering the barriers for purchasing luxury vehicles[9]. - The luxury car market in China has seen a compound annual growth rate of 22% over the past eleven years, significantly outpacing the overall passenger car market's 8%[17]. Company Sales and Revenue - BMW's sales in China were 329,000 units, a decline of 5.8% year-on-year, but Q2 sales increased by 17.1%[9]. - Lexus achieved a year-on-year sales growth of 4.8%, selling 97,000 units in the first half of 2020[9]. - New car sales volume for the first half of 2020 reached 14,613 units, a year-on-year decline of 5.5%, with BMW (including MINI) sales down 5.4% and Lexus sales up 7.4%[15]. - Revenue for the first half of 2020 was RMB 5,754.7 million, a slight decrease of 2.3% compared to RMB 5,891.5 million in the same period of 2019[21]. - New car sales revenue accounted for 87.3% of total revenue, amounting to RMB 5,021.4 million, while after-sales service revenue was RMB 717.9 million, down 13.6%[21]. Profitability and Financial Performance - The gross profit for the first half of 2020 was RMB 519.8 million, a decrease of 10.0% from RMB 577.6 million in the same period of 2019[23]. - The gross margin for the group in the first half of 2020 was 9.0%, down from 9.8% in the previous year[23]. - The profit attributable to the owners of the parent company for the first half of 2020 was approximately RMB 2,348 million, a decrease of 18.0% compared to the same period in 2019[29]. - The net profit for the six months ended June 30, 2020, was RMB 242,252,000, compared to RMB 293,958,000 for the same period in 2019, representing a decline of 17.6%[86]. - Basic earnings per share for the period was RMB 0.15, down from RMB 0.19 in the previous year[86]. Expenses and Cost Management - In the first half of 2020, the group's administrative expenses were RMB 758 million, remaining stable compared to the same period last year[26]. - The group's financial expenses for the first half of 2020 were RMB 571 million, an increase of 2.8% from RMB 555 million in the same period of 2019[28]. - The company’s total tax expense for the six months ended June 30, 2020, was RMB 65,388,000, compared to RMB 69,621,000 in the same period of 2019, a decrease of 6.4%[127]. - The company’s advertising and promotional expenses decreased to RMB 18,810,000 for the six months ended June 30, 2020, down from RMB 27,437,000 in the same period of 2019, a decline of 31.6%[126]. Cash Flow and Liquidity - As of June 30, 2020, the total cash and deposits amounted to RMB 18,016 million, with a net cash inflow from operating activities of RMB 7,291 million[32]. - The net cash generated from operating activities was RMB 729,108 thousand, an increase of 27% compared to RMB 574,595 thousand for the same period in 2019[104]. - Cash and cash equivalents at the end of the period amounted to RMB 1,801,591 thousand, up from RMB 1,163,500 thousand at the end of June 30, 2019, representing a 55% increase[104]. - The company reported a net cash outflow from investing activities of RMB 118,496 thousand, compared to RMB 72,651 thousand in the same period of 2019[104]. Inventory and Asset Management - Inventory decreased from RMB 12,619 million as of December 31, 2019, to RMB 10,251 million as of June 30, 2020, reflecting improved order management[35]. - The total inventory as of June 30, 2020, was RMB 1,025,138,000, down from RMB 1,261,867,000 as of December 31, 2019, a decrease of 18.7%[139]. - Current assets amounted to RMB 5,746,148,000, up from RMB 5,548,083,000, indicating an increase of about 3.57%[92]. - The company's goodwill increased to RMB 141,791,000 from RMB 57,911,000, showing a significant rise of approximately 144.5%[92]. Shareholder and Stock Options - The company has granted a total of 70,000,000 stock options under the stock option plan, with an exercise price of HKD 3.00 per share[57]. - The stock options granted on December 17, 2019, total 20,000,000 shares with an exercise price of HKD 4.00 per share[58]. - The stock options have a validity period until June 28, 2025, unless the relevant grantees cease to be employees[65]. - The company aims to attract and retain capable employees through the stock option plan, which was adopted on June 26, 2015[57]. Future Strategies and Expansion Plans - The group plans to expand its dealership network with 8 new authorized locations in key cities, enhancing its presence in the luxury car market[12]. - Future strategies include focusing on core business, expanding dealership operations through acquisitions, and increasing after-sales market value[20]. - The group aims to enhance customer retention and satisfaction while improving operational efficiency through data-driven management strategies[16]. Acquisitions and Goodwill - The group acquired 100% equity of several automotive sales service companies for a total consideration of RMB 154,057,000 during the reporting period[174]. - The goodwill arising from the acquisition is provisionally estimated at RMB 83,880,000, reflecting the expected synergies and future market developments[179].

China Harmony New Energy Auto Holding Limited 中國和諧新能源汽車控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 3836 2019 年度報告 102 2 1 2012 1 Card ( 目錄 公司資料 2 主席致辭 4 管理層討論與分析 9 企業管治報告 17 董事及高級管理層 29 董事會報告 > 34 2019年度環境·社會及管治報告 52 74 78 80 82 84 87 186 獨立核數師報告 | --- | |--------------------------| | | | | | 綜合損益及其他全面收入表 | | 綜合財務狀況表 | | 綜合權益變動表 | | 綜合現金流量表 | | 綜合財務報表附註 | | | 五年財務概要 公司資料 執行董事 馮長革先生(主席) 王能光先生(於2019年2月4日獲委任) 馮長革先生(主席) 陳英龍先生(於2020年3月27日獲委任) 劉風雷先生(總裁) 薛國平先生(於2020年3月27日辭任) 馬林濤女士(副總裁) 肖 長 年 先 生 ( 於 2019年 2 月 4 日 辭 任 ) 馮 果女士(副 ...

Market Performance - In the first half of 2019, the overall production and sales of passenger cars in China decreased by 15.8% and 14% respectively, with a total of 9.978 million and 10.127 million units sold[12]. - The luxury car market saw a demand increase, with over 1.4 million units sold in the first half of 2019, representing a year-on-year growth of 7.2%[12]. - The sales of new energy vehicles reached 614,000 units, with a year-on-year increase of 48.5%[12]. - The luxury car market is expected to maintain strong growth despite overall market challenges, driven by consumer upgrades and increased brand offerings[16]. - The luxury and ultra-luxury vehicle market is expected to continue positive growth, with the company focusing on expanding its brand portfolio and dealer network[20]. Company Sales and Revenue - During the reporting period from January 1 to June 30, 2019, BMW sales accounted for the largest share at 11,606 units, up 33.1% year-on-year[15]. - Lexus, as the second-largest brand, achieved sales of 1,723 units, reflecting a year-on-year growth of 30.7%[15]. - Ferrari's sales increased by 172.7% and Rolls Royce's sales rose by 90% during the same period[15]. - The company's revenue for the first half of 2019 was RMB 5,891.5 million, a 25.7% increase from RMB 4,687.4 million in the same period of 2018[23]. - New car sales revenue grew by 26.2% to RMB 5,048.8 million, accounting for 85.7% of total revenue[23]. - Revenue from automobile sales reached RMB 5,048,817 thousand for the six months ended June 30, 2019, compared to RMB 3,999,083 thousand for the same period in 2018, representing a growth of approximately 26.3%[138]. - Revenue from after-sales services increased to RMB 710,935 thousand for the six months ended June 30, 2019, up from RMB 606,357 thousand in the previous year, reflecting a growth of about 17.2%[138]. - Total revenue for the six months ended June 30, 2019, was RMB 5,891,521 thousand, compared to RMB 4,687,357 thousand for the same period in 2018, indicating an overall increase of approximately 25.7%[138]. Financial Performance - The gross profit for the first half of 2019 increased by 21.0% to RMB 577.6 million, compared to RMB 477.2 million in the same period of 2018[25]. - Operating profit decreased to RMB 440,162, down 25.3% from RMB 588,347 in the previous year[82]. - Net profit for the period was RMB 293,958, a decline of 31.9% compared to RMB 431,269 in the prior year[82]. - Basic earnings per share for the six months ended June 30, 2019, was RMB 0.19, down from RMB 0.28 in the same period of 2018[82]. - The company’s total comprehensive income for the period included a profit of RMB 424,424,000, contributing to a total comprehensive income of RMB 426,650,000[92]. - The income tax expense for the six months ended June 30, 2019, was RMB 69,621 thousand, down from RMB 83,393 thousand in the previous year, a decrease of 16.5%[152]. Cash Flow and Liquidity - The cash and deposits as of June 30, 2019, totaled RMB 1,489.8 million, with a net cash inflow from operating activities of RMB 574.6 million for the first half of 2019[29]. - As of June 30, 2019, the net cash flow from operating activities was RMB 574,595 thousand, a significant improvement from a net cash outflow of RMB 233,869 thousand in the same period of 2018[99]. - The cash and cash equivalents at the end of the period increased to RMB 1,163,500 thousand from RMB 866,981 thousand year-over-year, reflecting a positive cash position[101]. - The total cash and bank balances presented in the consolidated balance sheet were RMB 1,363,500 thousand, compared to RMB 971,481 thousand in the previous year[101]. Inventory and Asset Management - Inventory decreased from RMB 1,124.4 million on December 31, 2018, to RMB 991.5 million on June 30, 2019, a reduction of RMB 132.9 million[33]. - Average inventory turnover days improved from 44 days in 2018 to 36 days in the first half of 2019, reflecting better inventory management[33]. - The company has pledged inventory with a total carrying value of approximately RMB 500,195,000 as collateral for bank loans as of June 30, 2019, down from RMB 596,072,000 at the end of 2018[169]. Debt and Liabilities - Total bank loans and borrowings decreased by 8.3% from RMB 2,137.6 million on December 31, 2018, to RMB 1,961.1 million on June 30, 2019[34]. - The debt-to-asset ratio increased to 39.9% as of June 30, 2019, up from 37.2% on December 31, 2018, primarily due to the adoption of new lease accounting standards[35]. - Total liabilities amounted to RMB 4,658,809,000 as of June 30, 2019, compared to RMB 4,100,789,000 at the end of 2018, indicating an increase of about 13.6%[89]. - The total lease liabilities amounted to RMB 473,879,000 as of June 30, 2019, a decrease from RMB 497,285,000 at the beginning of the year[196]. Employee and Corporate Governance - Employee costs for the first half of 2019 were approximately RMB 148.0 million, compared to RMB 140.0 million in the same period of 2018[39]. - The company had 3,372 employees as of June 30, 2019, down from 3,693 employees on December 31, 2018[39]. - The company has established an audit committee in compliance with listing rules and corporate governance codes[77]. - The company continues to review and monitor its corporate governance practices to maintain high standards[74]. Shareholder and Equity Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2019[76]. - The company declared a final dividend of HKD 0.12 per share, totaling approximately RMB 156,079,000[156]. - As of June 30, 2019, the company had a total of 81,791,000 shares outstanding[57]. - The company repurchased a total of 5,852,500 shares at an average price of HKD 3.22, with a total cost of approximately HKD 18,413,850 during the six months ended June 30, 2019[70].

HARMONY AUTO 和諧汽車 China Harmony New Energy Auto Holding Limited 中國和諧新能源汽車控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號：3836 2018 | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | r proposion 目 錄 公司資料 2 主席致辭 4 管理層討論與分析 6 企業管治報告 16 董事及高級管理層 29 董事會報告 34 2018年度環境、社會及管治報告 51 獨立核數師報告 71 綜合損益表 77 綜合全面收益表 78 綜合財務狀況表 79 綜合權益變動表 81 綜合現金流量表 83 財務報表附註 86 an | --- | --- | --- | |-------|-------------------------------------------------| ...