Brilliance China Automotive Holdings Limited Announces 1997 Year-End Results; Semi-Annual Dividend
18 March 1998
Brilliance China Automotive Holdings Limited Announces 1997 Year-End Results; Semi-Annual Dividend
HONG KONG, March 18 -- Brilliance China Automotive Holdings
Limited (the "Company") announced today its results for the year
ended December 31, 1997.
Consolidated net sales of the Company and its operating subsidiary,
Shenyang JinBei Passenger Vehicle Manufacturing Company, Ltd. ("Shenyang
Automotive"), for the year ended December 31, 1997, increased 112.3% to
Rmb2,431.7 million from Rmb1,145.3 million for the year ended
December 31, 1996. The increase was mainly due to strong sales of the
Company's Mid-priced Minibuses as well as the increased sales of the Deluxe
Minibus.
Shenyang Automotive sold a total of 20,018 minibuses in 1997, a
95.7% increase over the 10,230 minibuses sold in 1996. The Company sold
10,729 of its Mid-priced Minibuses in 1997, an almost five-fold increase over
the 1,841 units sold in 1996. Unit sales of the Deluxe Minibus increased
55.0% from 3,263 units in 1996 to 5,059 units in 1997. Unit sales of the
Standard Minibus declined 17.5% from 5,126 units in 1996 to 4,230 units in
1997.
Operating income increased 245.1% to Rmb364.4 million in 1997 from
Rmb105.6 million in 1996. This increase was mainly due to increased sales and
cost reductions resulting from improved economies of scale and improved
operating efficiencies. Selling and administrative expenses rose 65.4% to
Rmb303.1 million in 1997 from Rmb183.2 million in 1996, primarily stemming
from increased advertising and sales promotional expenses incurred during that
period. Income before income taxes and minority interest increased 233.5% to
Rmb377.0 million in 1997 from Rmb113.1 million in 1996.
Net income increased 201.8% to Rmb172.4 million in 1997 from
Rmb57.1 million in 1996. Earnings per share were US$1.20 in 1997, triple the
earnings of US$0.40 per share for 1996.
Mr. Yang Rong, Chairman and President of the Company, said, "We have
witnessed another banner year in 1997. Shenyang Automotive experienced robust
growth in its sales and profitability. This is a testament to the new market-
oriented management system we put into place in 1995. With a sound product
strategy and improved operating efficiencies, Shenyang Automotive has achieved
its current position as the leading Chinese minibus manufacturer in terms of
production, sales and profitability. As a result, we are well-positioned for
strong growth in a competitive market in the coming years."
The Company adopted a resolution at a meeting of its board of directors on
March 16, 1998 to pay a cash dividend of US$0.04 per share of the Company's
common stock. The dividend is payable on April 30, 1998 to holders of record
on April 15, 1998.
The Company, incorporated in Bermuda, was established in 1992 to own a
51% interest in Shenyang Automotive, a Sino-foreign joint venture enterprise
established in 1991. Shenyang Automotive, located in Shenyang, the capital of
Liaoning Province and the commercial center of Northeast China, is the leading
manufacturer and distributor of minibuses within the People's Republic of
China. The Company was the first with operations solely in China to list
directly on the New York Stock Exchange.
Translation of amounts from Renminbi (Rmb) to U.S. dollars (US$) for the
convenience of the reader has been made at the rate of US$1.00=Rmb8.28,
announced by the People's Bank of China on December 31, 1997. No
representation is made that the Renminbi amounts could have been, or could be
converted into U.S. dollars at that rate or at any other rate.
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED AND SUBSIDIARY
Consolidated Statement of Income
For the Years Ended December 31, 1997 and 1996
(Amounts in thousands, except for share data)
Year Ended Year Ended
December 31, 1997 December 31, 1996
Rmb Rmb
Sales 2,431,693 1,145,295
Cost of sales 1,774,408 861,811
Gross profit 657,285 283,484
Selling and administrative expenses 303,092 183,243
Interest income, net 10,190 5,339
Operating income 364,383 105,580
Other income, net 12,613 7,471
Income before income taxes and
minority interest 376,996 113,051
Income taxes 40,975 7,286
Income before minority interest 336,021 105,765
Minority interest in
consolidated subsidiary 163,579 48,631
Net income 172,442 57,134
Earnings per share in Rmb Rmb9.9 Rmb3.3
Earnings per share in US$ US$1.20 US$0.40
Dividend per share US$0.08 US$0.08
Weighted average number of
shares outstanding 17,391,304 17,391,304
Certain of the 1996 amounts have been reclassified to conform to the
1997 presentation.
SOURCE Brilliance China Automotive Holdings Limited