Financial Performance - The net profit for BetterLife Holding Limited for the year ended December 31, 2021, was approximately RMB 560.7 million, an increase of about 82.9% compared to RMB 306.5 million for the year ended December 31, 2020[30]. - Revenue from automobile sales reached approximately RMB 8,728.0 million, representing an increase of about 17.0% from RMB 7,462.5 million in the previous year, accounting for approximately 87.6% of total revenue[54]. - After-sales service revenue amounted to approximately RMB 1,234.9 million, up about 15.3% from RMB 1,070.7 million in the previous year, contributing approximately 12.4% to total revenue[54]. - Gross profit increased by approximately 36.5% to about RMB 1,178.5 million, with a gross profit margin rising from approximately 10.1% to about 11.8%[56]. - The company's pre-tax profit rose by approximately 73.1% to about RMB 727.3 million for the year ended December 31, 2021[65]. - Net profit for the year increased by approximately 82.9% to about RMB 560.7 million, with a net profit margin of approximately 5.6%[68]. - The company proposed a final dividend of RMB 0.22 per share, totaling approximately RMB 137.0 million, subject to shareholder approval[70]. - The company's financial costs decreased by approximately 52.2% to about RMB 19.6 million, primarily due to reduced bank and other borrowings[64]. - As of December 31, 2021, the total equity of the group was approximately RMB 2,807.6 million, an increase of about 65.7% from RMB 1,694.2 million as of December 31, 2020[74]. - The group's current assets were approximately RMB 2,623.9 million as of December 31, 2021, compared to RMB 1,589.1 million as of December 31, 2020, while current liabilities were approximately RMB 966.1 million, down from RMB 1,000.7 million[74]. - Interest-bearing bank and other borrowings decreased by approximately 31.5% to RMB 223.5 million as of December 31, 2021, from RMB 326.1 million as of December 31, 2020, primarily due to significant cash generated from operating activities[75]. - The debt-to-equity ratio was approximately 8.0% as of December 31, 2021, down from 19.2% as of December 31, 2020[75]. - Cash and cash equivalents, restricted cash, cash in transit, and pledged deposits totaled RMB 1,358.1 million as of December 31, 2021, compared to RMB 262.3 million as of December 31, 2020[76]. - The total capital expenditure for the year ended December 31, 2021, was RMB 183.4 million, an increase from RMB 169.5 million in 2020[80]. - The company reported a distributable reserve of approximately RMB 582.0 million as of December 31, 2021, with RMB 137.0 million proposed for the final dividend[123]. Business Operations - The company operates 14 4S dealerships for luxury and ultra-luxury brands such as Porsche, Audi, and Mercedes-Benz across seven provinces in China, indicating a strong market presence[30]. - The company aims to enhance its market position through strategies including internal growth and selective acquisitions to expand its dealership network and brand portfolio[34]. - The company plans to further expand its new energy vehicle business to capitalize on the growing market for electric vehicles[34]. - The company has implemented an ERP system to integrate business information, enhancing operational efficiency and customer relationship management[32]. - BetterLife Holding Limited focuses on improving customer satisfaction and aims to be a one-stop supplier for automotive products and services[31]. - The company emphasizes the importance of recruiting, training, and retaining employees to support future growth and expansion[34]. - The Chinese government's promotion of passenger vehicle consumption is expected to stimulate demand for the company's products and services[31]. - The company has opened two new Jaguar-Land Rover 4S stores in Shanghai and Chengdu, both of which commenced operations in January 2022[36]. - The company plans to establish new showrooms for Mercedes-Benz, Jaguar-Land Rover, and SAIC Audi in Beijing and Shanghai, with expected openings in Q2 and Q3 of 2022[45]. - The company operates 14 4S dealerships for luxury and ultra-luxury brands across seven provinces and cities in China, strategically located in affluent urban areas[42]. - The company aims to acquire additional 4S dealerships for luxury brands such as Porsche, Mercedes-Benz, and Bentley, targeting locations similar to new store openings[36]. - The company is focused on enhancing operational efficiency and profitability to maximize shareholder returns[37]. - The company has implemented standardized central management across its extensive 4S dealership network, covering investment, pricing, procurement, and inventory management[46]. - The company emphasizes customer retention as a key performance indicator, utilizing technology to improve customer service experiences[48]. - The company has a seasoned management team with an average tenure of approximately 14 years in the automotive dealership industry[49]. - The company provides a comprehensive range of automotive-related products and services, including sales, after-sales service, and value-added services like financing and insurance[45]. - The company is committed to cultivating local talent, with most dealership general managers promoted internally and having an average tenure of about 10 years[49]. - The company sold a total of 14,158 passenger cars for the year ended December 31, 2021, an increase of approximately 5.0% compared to 13,480 passenger cars sold in the previous year[50]. Market Outlook - According to a Frost & Sullivan report, the sales of luxury and ultra-luxury passenger vehicles in China are projected to grow at a compound annual growth rate (CAGR) of 10.2% and 3.3% from 2020 to 2025, reaching approximately 5.7 million and 118,400 units respectively by 2025[31]. - The company aims to further explore business opportunities and expand its dealership network to drive future growth[53]. Corporate Governance - The company has a management team with extensive experience in the automotive industry, including leadership roles in various dealerships[110]. - The company’s independent non-executive directors bring over 30 years of professional accounting and management experience, enhancing corporate governance[107]. - The company has issued a total of 172,500,000 shares at a price of HKD 4.4 each during the global offering[156]. - The company has no arrangements that would cause directors or senior management to hold any interests in the company's shares or related securities, apart from those disclosed[148]. - The company has established several non-exempt continuing connected transactions as of December 31, 2021[180]. - The external auditor has issued an unqualified opinion letter regarding the group's continuing connected transactions in accordance with the relevant standards[199]. Shareholder Information - The board proposed a final dividend of RMB 0.22 per share for the year ended December 31, 2021, totaling approximately RMB 137.0 million[84]. - The board recommended a final cash dividend of RMB 0.22 per share for the year, pending shareholder approval[124]. - The company has not established any fixed dividend payout ratio at present[124]. - As of December 31, 2021, Chou Dynasty holds 450,000,000 shares, representing 72.29% of the issued share capital[150]. Environmental and Social Responsibility - The company emphasizes strict environmental protection measures to comply with current laws and regulations[118]. - The company made charitable donations of approximately RMB 2.5 million during the fiscal year ending December 31, 2021[127].
百得利控股(06909) - 2021 - 年度财报