Brilliance China Announces 1999 Year-End Results
27 April 2000
Brilliance China Automotive Holdings Limited Announces 1999 Year-End Results; Proposed Payment Of Cash Dividend
HONG KONG, April 27 Brilliance China Automotive Holdings
Limited (the "Company") (NYSE: CBA; SEHK: 1114) announced today its results
for the year ended December 31, 1999 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") and Shenyang XingYuanDong Automobile Component Co., Ltd. ("Xing Yuan
Dong") for the year ended December 31, 1999 were Rmb 4,351.2 million, a 34.8%
increase from sales of Rmb 3,227.3 million for the year ended December 31,
1998. 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 42,199 minibuses in 1999, a
41.1% increase over the 29,911 minibuses sold in 1998. Shenyang Automotive
sold 33,547 of its Mid-priced Minibuses in 1999, a 49.9% increase over the
22,384 vehicles sold in 1998. Unit sales of the Deluxe Minibus increased
41.7% from 5,214 vehicles in 1998 to 7,387 in 1999. Shenyang Automotive sold
1,265 Standard Minibuses in 1999.
Consolidated operating income in 1999 increased 51.9% to Rmb 960.7 million
from Rmb 632.6 million in 1998. The increase was due primarily to
contributions from Xing Yuan Dong and Ningbo Yuming, as well as increased
sales and cost reductions resulting from improved economies of scale in
production and improved operating efficiencies. Cost of sales as a percentage
of sales declined from 67.5% in 1998 to 65.9% in 1999. Selling and
administration expenses were Rmb 524.3 million, or 12.0% of sales in 1999,
compared with Rmb 414.9 million, or 12.9% of sales, in 1998.
Net income increased 109.7% to Rmb 649.0 million in 1999 from Rmb 309.5
million in 1998. Earnings per share were US$0.029 in 1999 compared to
earnings of US$0.014 per share in 1998. Earnings per American depositary
share ("ADS") were US$2.91 in 1999, compared to earnings of US$1.43 per ADS
for 1998.
Mr. Yang Rong, Chairman and President of the Company, said, "1999 has been
another record-setting year for the Company in terms of sales, market share,
net income and EPS. These results were achieved through the introduction of
new and better products onto the market as well as further reductions in our
production costs. As we enter into the new millennium, we have become one of
the most profitable automotive manufacturers in China. To ensure long-term
growth for the Company, we will continue to invest in new technologies and
products to meet the needs of our customers."
Looking forward to this first fiscal year of the new century, the Company
stands well positioned to achieve another year of outstanding growth. This is
the result of a combination of past and current efforts in enhancing the
competitiveness of the operating subsidiaries of the Company.
The research and development at Shenyang Automotive resulted in the launch
of an electronic fuel injection Mid-priced Minibus model in January 2000 as
well as other new models that will be introduced during the course of the
year. The performance of the new electronic fuel injection Mid-priced Minibus
exceeds the prevailing national gasoline vehicle emission standards in
anticipation of the enforcement of more stringent environmental protection
regulations by Chinese authorities. The introduction of this new technology
well ahead of its competitors in China has given Shenyang Automotive a clear
advantage in the area of environmental compliance of its products.
The Company has continued to push forward with the establishment of its
new and more advanced "3 S" sales center system, combining showrooms, spare
parts and after-sales services in one location. In addition, the Company will
also continue to strive to improve the quality and efficiency of its
distribution networks. Strengthening cross regional marketing and sales
co-ordination will also be among our top priorities.
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 Wednesday, June 28, 2000 at 10:00 a.m. the payment of a cash dividend
of HK$0.0021 per share of the Company's ordinary shares (US$0.0269 per ADS).
The dividend, if approved by the shareholders, will be paid on or before
June 30, 2000 to holders of record on June 23, 2000.
The Company, incorporated in Bermuda, was established in 1992 to own a
51% interest in Shenyang Automotive, a Sino-foreign joint venture enterprise
established in 1991. Shenyang Automotive, located in Shenyang, the capital of
Liaoning Province and the commercial centre of northeastern region of China,
is the leading manufacturer and distributor of minibuses in China. In May
1998, the Company acquired an indirect interest in two components
manufacturers: a 51% equity interest in Ningbo Yuming, a wholly foreign-owned
Chinese enterprise primarily engaged in the production of automobile window
molding and stripping; and a 50% equity interest in Mianyang Xinchen Engine
Co., Ltd., a Sino-foreign joint venture manufacturer of gasoline engines for
use in passenger vehicles and light duty trucks. In October 1998, the Company
established Xing Yuan Dong as its wholly owned subsidiary to centralize and
consolidate the sourcing of auto parts and components for Shenyang Automotive.
Translation of amounts from Renminbi (Rmb) to U.S. dollars (US$) for the
convenience of the reader has been made at the rate of US$1.00=Rmb 8.28, which
is the rate announced by the People's Bank of China on December 31, 1999. No
representation is made that the Renminbi amounts could have been, or could be
converted into U.S. dollars at that rate or at any other rate. In addition,
all financial information presented herein has been prepared in accordance
with United States generally accepted accounting principles.
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 1999 and 1998
US GAAP
Year Ended Year Ended
(Amounts in thousands of RMB,
except for share and ADS data) Note December 31, December 31,
1999 1998
Sales 4,351,169 3,227,324
Cost of sales 2,866,202 2,179,866
Gross profit 1,484,967 1,047,458
Selling and administrative
expenses 524,284 414,896
Operating income 960,683 632,562
Equity in earnings of
associated companies 45,429 19,565
Other income, net 9,400 19,366
Income before income taxes and
minority interests 1,015,512 671,493
Income taxes 72,227 63,656
Income before minority
interests 943,285 607,837
Minority interests in
consolidated subsidiaries 294,266 298,372
Net income 649,019 309,465
Earnings per share in Rmb 1 0.2408 0.1186
Earnings per share in US$ 1 0.0291 0.0143
Earnings per ADS in US$ 2 2.9077 1.4327
Adjusted weighted average
number of shares outstanding 1 2,695,692,900 2,608,692,900
Adjusted weighted average
number of ADSs outstanding 2 26,956,929 26,086,929
Notes
1.The calculation of earnings per share is based on the adjusted weighted
average number of shares outstanding during the years presented.The
adjusted weighted average number of shares outstanding for the year
ended December 31, 1999 was 2,695,692,900 shares after retrospectively
taking into account the effect of the stock split effected on April 14,
2000.The adjusted weighted average number of shares in 1998 has been
retrospectively adjusted for the stock splits which took place in 1999
and on April 14, 2000.
2. The calculation of earnings per ADS is based on the adjusted weighted
average number of ADSs outstanding during the years presented. The
weighted average 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 of the outstanding shares were held in the
form of ADSs (at the ratio of 100 ordinary shares for each ADS).