Brilliance China Automotive Announces Interim Results; Semi-Annual Dividend
2 September 1997
Brilliance China Automotive Announces Interim Results; Semi-Annual Dividend
HONG KONG, Sept. 2 -- Brilliance China Automotive Holdings
Ltd. (the "Company") announced today interim results for the six
months ended June 30, 1997.
Consolidated net sales of the Company and its operating subsidiary,
Shenyang JinBei Passenger Vehicle Manufacturing Company Ltd. ("Shenyang
Automotive"), in the first six months of 1997 were Rmb 995.5 million, a
137.4% increase from sales of Rmb 419.4 million for the same period in 1996.
The increase in sales was primarily attributable to successful marketing of
the relatively new Mid-priced Minibus series and the strong sales of the
Deluxe Minibus. Unit sales of the Deluxe Minibus in the first six months of
1997 increased 88.9% as compared to the first six months of 1996, while unit
sales of the Standard Minibus declined by 3.1% for the same period. Unit
sales of the Mid-priced Minibus for the first six months of 1997 were more
than double the total 1996 unit sales of this series since its introduction to
the market in the second quarter of that year.
Operating income for the first six months of 1997 increased 460.7% to
Rmb 149.0 million from Rmb 26.6 million for the same period in 1996. The
increase was mainly due to the increased sales of both the Deluxe Minibus and
the Mid-priced Minibus combined with a proportionally lower increase in costs
and expenses. Cost of sales increased 109.0%, resulting from the increase in
production. Selling and administrative expenses rose in the first half of
1997 by 151.5% over the same period in 1996, primarily as a result of
increased advertising and promotional expenses.
Net income after tax and minority interest increased 392.5% to
Rmb 75.5 million in the first half of 1997 from Rmb 15.3 million in the first
half of 1996, as a result of the increased sales and improved operating
efficiencies. Earnings per share were US$0.52 for the first half of 1997, a
372.7% increase over the earnings of US$0.11 per share for the first half of
1996.
Mr. Rong Yang, Chairman and President of the Company, said: "The Company
has exhibited strong performance for the first six months of 1997. This is
the result of the continued strengthening of management at Shenyang
Automotive. The management team has focused on expanding our market share and
product range as well as the improvement of quality. Our Mid-priced Minibuses
have done particularly well in an increasingly competitive minibus market.
For the first six months of this year, our JinBei minibuses have been ranked
the number one selling minibuses in China.
"By providing better sales and after-sales services to our customers,
introducing an additional luxury model to our Deluxe Minibus line and
continuing to capitalize upon the positive reception of our Mid-priced Minibus
by the market, the Company expects to maintain healthy sales growth in the
second half of 1997."
The Company adopted a resolution at a meeting of its board of directors on
August 25, 1997 to pay a cash dividend of US$O.04 per share of the Company's
common stock. The dividend is payable on October 31, 1997 to holders of
record on October 9, 1997.
The Company, incorporated in Bermuda, was established in 1992 to own a
51% interest in Shenyang Automotive, a Sino-foreign equity joint venture
enterprise established in 1991. Shenyang Automotive, located in Shenyang, the
capital of Liaoning Province and the commercial center of the northeastern
region of China, is a leading manufacturer of minibuses in China and was the
first company with operations solely in China to list directly on the New York
Stock Exchange.
* Translation of amounts from Renminbi (Rmb) to U.S. dollars (US$) for the
convenience of the reader has been made at the rate of US$1.00 = Rmb 8.29, the
rate announced by the People's Bank of China on June 30, 1997. No
representation is made that the Renminbi amounts could have been, or may now
be converted into United States dollars at that or at any other rate.
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
For Six Months Ended June 30, 1997 and 1996
For six months ended For six months ended
June 30, 1997 June 30, 1996
(unaudited) (unaudited)
Rmb Rmb
(Amounts in thousands, except for share data)
Sales 995,519 419,402
Cost of sales (736,348) (352,288)
Gross profit 259,171 67,114
Selling and administrative
expenses (113,373) (45,077)
Pension expense (3,966) (3,582)
Interest income (expense), net 7,189 8,121
Operating income 149,021 26,576
Other income (expense), net 8,356 1,204
Income before income taxes
and minority interest 157,377 27,780
Income tax expense (11,443) (2,423)
Income before minority
interest 145,934 25,357
Minority interest in
consolidated subsidiary (70,484) (10,036)
Net income 75,450 15,321
Earnings per share in Rmb Rmb 4.3 Rmb 0.9
Earnings per share in US$ US$O.52 US$0.11
Dividend per share US$0.04 US$0.04
Weighted average number of
shares outstanding 17,391,304 17,391,304
Note: Certain of the 1996 amounts have been reclassified to conform to
the 1997 presentation.
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
As of June 30, 1997 and 1996
June 30, 1997 June 30, 1996
(unaudited) (unaudited)
Rmb Rmb
(Amounts in thousands, except for share data)
ASSETS
Current assets:
Cash and cash equivalents 217,665 99,262
Short-term bank deposits 228,146 260,310
Due from JinBei and affiliated
companies 392,840 137,644
Accounts receivable 233,313 172,858
Inventories 208,531 285,916
Prepayments and other current
assets 158,994 256,110
Total current assets 1,439,489 1,212,100
Prepayments for equipment -- --
Property, plant and equipment 722,965 759,315
Other assets 68,633 74,025
Total assets 2,231,087 2,045,440
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank loans 243,590 462,332
Current portion of long-term
loans 21,055 10,045
Notes payable 0 19,007
Accounts payable 265,200 121,487
Other payables and accrued
expenses 95,075 37,740
Due to affiliated companies 57,481 29,351
Taxes payable 20,394 37,823
Dividend payable 4,927 4,949
Total current liabilities 707,722 722,734
Long-term loans 2,453 16,552
Minority interest 653,407 544,327
Shareholders' equity:
Capital stock
Supervoting common stock, par value
US$0.01 each, 30,000,000 shares
authorized; 12,328,304 shares
outstanding 813 813
Common stock, par value $0.01 each,
50,000,000 shares authorized;
5,063,000 shares outstanding 362 362
Additional paid-in capital 618,933 618,933
Cumulative translation
adjustments 39,179 39,179
Retained earnings 208,218 102,540
Total shareholders' equity 867,505 761,827
Total liabilities and
shareholders' equity 2,231,087 2,045,440
Note: Certain of the 1996 amounts have been reclassified to conform to
the 1997 presentation.
SOURCE Brilliance China Automotive Holdings Ltd.