Brilliance China Automotive Holdings Limited Announces 1998 Year-End Results
29 April 1999
Brilliance China Automotive Holdings Limited Announces 1998 Year-End Results
HONG KONG, April 28 -- The following was originally released
by Brilliance China Automotive on April 20:
Brilliance China Automotive Holdings Limited (the "Company")
announced today its results for the year ended December 31, 1998.
Consolidated net sales of the Company and its operating subsidiaries,
Shenyang JinBei Passenger Vehicle Manufacturing Company, Ltd. ("Shenyang
Automotive") and Ningbo Yuming Machinery Industrial Co., Ltd. ("Ningbo
Yuming"), for the year ended December 31, 1998, increased 32.7% to
Rmb3,227.3 million from Rmb2,431.7 million for the year ended December 31,
1997. The increase was mainly due to the over 100% increase in the unit sales
of the Company's Mid-priced Minibuses as well as the strong sales of the
Deluxe Minibus.
Shenyang Automotive sold a total of 29,911 minibuses in 1998, a 49.4%
increase over the 20,018 minibuses sold in 1997. The Company sold 22,384 of
its Mid-priced Minibuses in 1998, a 108.6% increase over the 10,729 units sold
in 1997. Unit sales of the Deluxe Minibus increased 3.1% from 5,059 units in
1997 to 5,214 units in 1998. Unit sales of the lower margin Standard Minibus
declined 45.3% from 4,230 units in 1997 to 2,313 units in 1998.
Operating income increased 72.5% to Rmb632.6 million in 1998 from Rmb366.7
million in 1997. This increase was mainly due to increased sales and cost
reductions resulting from improved economies of scale, improved operating
efficiencies and contributions from the two automotive components subsidiaries
acquired in 1998. Selling and administrative expenses rose 37.6% to Rmb414.9
million in 1998 from Rmb301.6 million in 1997, primarily stemming from
increased promotional expenses incurred during that period. Income before
income taxes and minority interest increased 78.1% to Rmb671.5 million in 1998
from Rmb377.0 million in 1997.
Net income increased 79.5% to Rmb309.5 million in 1998 from Rmb172.4
million in 1997. Earnings per share were US$2.15 in 1998, compared to
earnings of US$1.20 per share for 1997.
Mr. Yang Rong, Chairman and President of the Company, remarked, "We have
registered outstanding growth in all the important categories, i.e., sales,
market share, net income and EPS. What is more remarkable is that we achieved
all these milestones despite adverse economic conditions in China. In 1998,
China experienced the slowest GDP growth of the past few years due to the
continued negative impact of the regional financial crisis as well as the
effects of the floods that devastated vast areas of the country this past
summer. Our strong growth in a relatively flat market means that we have met
our competition head on, and taken away competitors' market share with our
better products and lower prices. In the coming year, the main focus of our
business strategy will remain the further reduction of costs and the
development of new products to continue the growth of our sales."
The Company incorporated in Bermuda, was established in 1992 to own a 51%
interest in Shenyang Automotive, a Sino-foreign joint venture enterprise
established in 1991. Shenyang Automotive, located in Shenyang, the capital of
Liaoning Province and the commercial centre of Northeast China, is the leading
maufacturer and distributor of minibuses in China. In May 1998, the Company
acquired an indirect interest in two automotive component suppliers: a 51%
equity interest in Ningbo Yuming, a wholly foreign-owned Chinese enterprise
primarily engaged in the production of automobile window molding and
stripping; and a 50% equity interest in Mianyang Xinchen Engine Co. Ltd., a
Sino-foreign equity joint venture manufacturer of gasoline engines for use in
passenger vehicles and light duty trucks. The Company was the first with
operations solely in China to list directly on the New York Stock Exchange.
Translation of amounts from Renminbi (Rmb) to U.S. dollars (US$) for the
convenience of the reader has been made at the rate of US$1.00 - Rmb8.28,
which is the rate announced by the People's Bank of China on December 31,
1998. No representation is made that the Renminbi amounts could have been or
could be converted into U.S. dollars at that rate or at any other rate.
Brilliance China Automotive Holdings Limited and Subsidiaries
Consolidated Statements of Income
For the Years Ended December 31, 1998 and 1997
(Amounts in thousands of Rmb,
except for share data) Year Ended Year Ended
December 31, 1998 December 31, 1997
Sales 3,227,324 2,431,693
Cost of sales 2,179,866 1,763,374
Gross Profit 1,047,458 668,319
Selling and administrative expenses 414,896 301,618
Operating income 632,562 366,701
Investment income 19,565 --
Other income (expenses), net 19,366 10,295
Income before income taxes
and minority interest 671,493 376,996
Income taxes 63,656 40,975
Income before minority interest 607,837 336,021
Minority interest in consolidated
subsidiaries 298,372 163,579
Net income 309,465 172,442
Earnings per share in Rmb Rmbl7.8 Rmb9.9
Earnings per share in US$ US$2.15 US$1.20
Dividend per share US$0.08 US$0.08
Weighted average number of
shares outstanding 17,391,304 17,391,304
Certain of the 1997 amounts have been reclassified to conform to the 1998
presentation.