OFFCN EDU(SZ:002607)2022-12-06 02:36Business Overview - The main business of Asia Automotive is primarily vehicle sales through 4S stores, accounting for approximately 90% of revenue in 2016 [1] - The company also engages in automotive repair and parts, driver training, automotive insurance, and automotive finance [2] Profitability by Segment - Gross profit margins for various segments in 2016 were as follows: - Vehicle sales: 1.02% - Repair and parts: 30.52% - Driver training: 32.74% - Brokerage and consulting services: 73.51% - Financial services: 100% (with capital of 760 million yuan and no financing costs) [2] Future Growth Areas - The company aims to enhance performance by focusing on automotive financing leasing and insurance businesses, which have higher gross profit margins compared to vehicle sales [2] - In 2016, the company completed a targeted issuance of 1 billion yuan, with 560 million yuan allocated for developing automotive financing leasing [2] - The capital scale of the financing leasing company reached 760 million yuan, providing a cost advantage [2] Strategic Partnerships and Expansion - The company has formed strategic partnerships with well-known internet companies to develop ride-hailing services, expanding its financing leasing business in cities like Shanghai, Nanjing, Suzhou, and Chongqing [2] - The growth of financing leasing is expected to have a positive impact on automotive insurance brokerage and after-sales repair services [2] Revenue Growth in Insurance Brokerage - The company achieved over 92 million yuan in revenue from insurance brokerage last year, more than doubling from the previous year [3] - Despite stricter regulations in the insurance industry, the rapid growth of financing leasing is expected to drive insurance brokerage revenue to exceed 100 million yuan [3] Competitive Advantages and Strategic Direction - The company possesses unique advantages in the automotive industry chain, regional sales service network, and brand agency [3] - The company plans to actively pursue industry consolidation and prioritize acquisitions in related automotive sectors and the new energy vehicle industry [3] - The company has a significant presence in driver training with over 10 driving schools, indicating potential for growth in automotive vocational training [3]