Brilliance China Automotive Holdings Limited Announces 2000 Year-End Results; Proposed Payment of Cash Dividend
NEW YORK--April 25, 2001--Brilliance China Automotive Holdings Limited (the "Company") announced today its results for the year ended December 31, 2000 and its Board's recommendation for a cash dividend payment.Consolidated net sales of the Company and its operating subsidiaries, Shenyang JinBei Passenger Vehicle Manufacturing Company Ltd. ("Shenyang Automotive"), Ningbo Yuming Machinery Industrial Company Ltd. ("Ningbo Yuming"), Shenyang XingYuanDong Automobile Component Co., Ltd. ("Xing Yuan Dong"), Ningbo Brilliance Ruixing Auto Components Co., Ltd. ("Ruixing") and Mianyang Brilliance Ruian Automotive Components Co., Ltd. ("Ruian") for the year ended December 31, 2000 were Rmb 6,306.4 million, a 44.9% increase from sales of Rmb 4,351.2 million for the year ended December 31, 1999. The increase in sales was primarily attributable to the increase in the unit sales of Shenyang Automotive's Mid-priced Minibus as well as strong sales of the Deluxe Minibus.
Shenyang Automotive sold a total of 60,018 minibuses in 2000, a 42.2% increase over the 42,199 minibuses sold in 1999. Shenyang Automotive sold 49,873 of its Mid-priced Minibuses in 2000, a 48.7% increase over the 33,547 vehicles sold in 1999. Unit sales of the Deluxe Minibus increased 37.3% from 7,387 vehicles in 1999 to 10,145 in 2000. Shenyang Automotive discontinued production and sale of its lower end Standard Minibus at the end of 1999.
Consolidated operating income in 2000 increased 27.7% to Rmb 1,226.8 million from Rmb 960.7 million in 1999. The increase was due primarily to contributions from Xing Yuan Dong, as well as increased sales of minibuses. Cost of sales as a percentage of sales increased from 65.9% in 1999 to 70.3% in 2000. Selling and administration expenses were Rmb 643.4 million, or 10.2% of sales in 2000, compared with Rmb 524.3 million, or 12.0% of sales, in 1999.
Net income increased 34.1% to Rmb 870.0 million in 2000 from Rmb 649.0 million in 1999. Basic earnings per American depositary share ("ADS") were US$3.34 in 2000, compared to basic earnings of US$2.91 per ADS for 1999. Diluted earnings per ADS (which takes into account the potential dilutive effect of outstanding stock options) were US$3.24 in 2000.
Mr. Yang Rong, Chairman and President of the Company, said, "In 2000, the Company's primary operating vehicle, Shenyang Automotive, further consolidated its leading position in China's minibus market with increased sales volumes as well as profitability. These record-setting results were achieved amidst an economic environment of overall improved economic conditions in China but increased pressure from our competitors in the Chinese market. Our foresight in developing new technologies and new products specific to the Chinese market over the past few years has paid off, giving a healthy boost to our sales.
Looking forward to the coming year, despite increased competition in the Chinese automobile market in general, the Company is in a solid position to enjoy further growth. The improvements we have made in our products and distribution networks in the past will enable us to offer better value to our customers."
The Board of Directors will recommend at the forthcoming Annual General Meeting to be held at the Grand Hyatt Hong Kong, 1 Harbour Road, Wanchai, Hong Kong on Friday, June 22, 2001 at 9:00 a.m. the payment of a cash dividend of HK$0.005 per share of the Company's ordinary shares (US$0.0641 per ADS). The dividend, if approved by the shareholders, will be paid on or before June 29, 2001 to the shareholders of record at the close of trading in Hong Kong on June 21, 2001.
The Company, incorporated in Bermuda, was established in 1992 to own a 51% interest in Shenyang Automotive, a Sino-foreign joint venture enterprise established in 1991. Shenyang Automotive, located in Shenyang, the capital of Liaoning Province and the commercial centre of northeastern region of China, is the leading manufacturer and distributor of minibuses in China. In May 1998, the Company acquired an indirect interest in two components manufacturers: a 51% equity interest in Ningbo Yuming, a wholly foreign-owned Chinese enterprise primarily engaged in the production of automobile window molding and stripping; and a 50% equity interest in Mianyang Xinchen Engine Co., Ltd., a Sino-foreign joint venture manufacturer of gasoline engines for use in passenger vehicles and light duty trucks. In October 1998, June 2000 and July 2000, the Company established Xing Yuan Dong, Ruixing and Ruian, respectively, as its wholly owned subsidiaries to centralize and consolidate the sourcing of auto parts and components for Shenyang Automotive. In December 2000, the Company acquired a 50% equity interest in Shenyang Xinguang Brilliance Automobile Engine Co., Ltd., a sino-foreign equity joint venture manufacturer of gasoline engines for use in passenger vehicles. The Company was the first with operations solely in China to list directly on the New York Stock Exchange.
Translation of amounts, for the convenience of the reader, from Renminbi (Rmb) to U.S. dollars (US$) has been made at the rate of US$1.00=Rmb 8.28 and from Hong Kong dollars (HK$) to U.S. dollars has been made at the rate of US$1.00 = HK$7.80. No representation is made that the Renminbi or Hong Kong dollar amounts could have been, or can be converted into U.S. dollars at that rate or at any other rate. In addition, all financial information presented herein has been prepared in accordance with United States generally accepted accounting principles.
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 2000 and 1999
US GAAP
(Amounts in thousands of RMB,
except for share and ADS Note Year Ended Year Ended
data) December 31, December 31,
2000 1999
---- ----
Sales 6,306,430 4,351,169
Cost of sales 4,436,155 2,866,202
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Gross profit 1,870,275 1,484,967
Selling and administrative
expenses 643,432 524,284
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Operating income 1,226,843 960,683
Equity in earnings of associated
companies, net 62,264 45,429
Subsidy income 181,600
Other income (expenses), net (11,281) 9,400
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Income before income taxes
and minority interests 1,459,426 1,015,512
Income taxes 316,337 72,227
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Income before minority
interests 1,143,089 943,285
Minority interests in consolidated
subsidiaries 273,059 294,266
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Net income 870,030 649,019
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Basic earnings per share in Rmb 1 Rmb 0.2761 Rmb 0.2408
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Basic earnings per share in US$ 1 US$ 0.0334 US$ 0.0291
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Basic earnings per ADS in US$ 1,3 US$ 3.3359 US$ 2.9077
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Diluted earnings per share in Rmb 2 Rmb 0.2680 N/A
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Diluted earnings per share in US$ 2 US$ 0.0324 N/A
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Diluted earnings per ADS in US$ 2, 3 US$ 3.2387 N/A
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Weighted average number of
shares outstanding 3,151,418,900 2,695,692,900
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Weighted average number of
ADSs outstanding 3 31,514,189 26,956,929
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Adjusted weighted average number
of shares outstanding 2 3,245,981,803 N/A
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Adjusted weighted average number
of ADSs outstanding 2,3 32,459,818 N/A
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Notes
1. The calculation of basic earnings per share and per ADS is
based on the weighted average number of shares and ADSs
outstanding during the year. The effect of the bonus issue on
April 14, 2000 has been reflected retrospectively for the
purpose of the computation.
2. The diluted earnings per share and per ADS are calculated
based on the adjusted weighted average number of shares and
ADSs outstanding during the year. The adjusted weighted
average number of shares and ADSs is based on the weighted
average number of shares and ADSs outstanding, adjusted for
the dilutive potential ordinary shares outstanding as a result
of outstanding stock options during the year. Diluted earnings
per share and per ADS has not been presented for 1999 as there
were no dilutive potential ordinary shares outstanding.
3. The number of ADSs outstanding is calculated based on the
assumptions that the ADSs had been in existence throughout all
the years presented and that all the outstanding shares were
held in the form of ADSs (at the ratio of 100 ordinary shares
for each ADS).