Brilliance China Automotive Holdings Limited Announces Interim Results; Semi-Annual Dividend
19 September 2000
Brilliance China Automotive Holdings Limited Announces Interim Results; Semi-Annual Dividend
HONG KONG, Sept. 19 Brilliance China Automotive Holdings
Limited (the "Company") announced today interim
results for the six months ended June 30, 2000 and the payment of a
semi-annual dividend.
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 Xing Yuan Dong Automotive Component Co., Ltd. ("Xing Yuan Dong")
in the first six months of 2000 were Rmb 2,909.7 million (US$351.4 million), a
56.8% increase from sales of Rmb 1,855.8 million (US$224.1 million) for the
same period in 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 30,008 minibuses in the first half of
2000, a 65.9% increase over the 18,084 minibuses sold during the same period
in 1999. Shenyang Automotive sold 25,638 of its Mid-priced Minibuses in the
first six months of 2000, an increase of 81.1% over the 14,154 units sold
during the same period in 1999. Unit sales of the Deluxe Minibus increased
39.0% from 3,143 in the first six months of 1999 to 4,370 units for the same
period in 2000.
Consolidated operating income for the first six months of 2000 increased
68.4% to Rmb 648.9 million (US$78.4 million) from Rmb 385.5 million
(US$46.6 million) for the same period in 1999. The increase was due primarily
to contributions from Xing Yuan Dong, Ningbo Yuming and its other components
manufacturer, Mianyang Xinchen Engine Co., Ltd. ("Mianyang Xinchen"), 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 was 66.4% in the first half of 2000, which was the same as
that in the first half of 1999. Selling and administration expenses plus
Stock-based compensation expense were Rmb 329.0 million (US$39.7 million), or
11.3% of sales, in the first half of 2000, compared with Rmb 237.8 million
(US$28.7 million), or 12.8% of sales, for the same period in 1999.
Net income increased 36.6% to Rmb364.2 million (US$44.0 million) in the
first half of 2000 from Rmb 266.7 million (US$ 32.2 million) in the first half
of 1999.
On January 13, 2000, the Company granted stock options to certain
directors and employees to subscribe for a total of 304,360,000 ordinary
shares at a discount of 20% to the average closing price of the ordinary
shares on the Stock Exchange of Hong Kong Limited for the 5 business days
immediately preceding the date of the grant of the options. According to U.S.
SFAS 123, the discounts granted were recognized as compensation and charged as
an expense. Such compensation expense amounting to RMB 88.3 million
(US$10.7 million) was charged to the Company's income statement during the
period and impacted the net income accordingly. However, the same amount was
credited to additional paid-in capital and therefore does not impact the
shareholders' equity as a whole. Under Hong Kong GAAP, there is no specific
accounting standard for compensation expenses relating to stock options.
On April 14, 2000, the Company issued a dividend of nineteen bonus shares
for every then existing share of the Company and the Company's shares traded
on The New York Stock Exchange Inc. were converted to ADSs at a ratio of 100
shares to 1 ADS.
Earnings per ADS were US$1.45 for the first half of 2000, a 17.0% increase
over the earnings of US$1.24 (as adjusted by various bonus share issues) in
the first half of 1999.
Mr. Yang Rong, Chairman and President of the Company, said: "We are happy
to deliver to our shareholders another set of favorable interim results.
Thanks to the implementation of a forward-looking product strategy that has
addressed market demands, improved efficiency of our operations, and vigorous
efforts at cost control, we have been able to achieve record growth and
further consolidate our leading position in China's minibus market. As
always, management will continue to explore ways to sustain long- term high
growth for the Company."
The Company adopted a resolution at a meeting of its Board of Directors on
September 19, 2000 to pay a cash dividend of HK$0.0030 per ordinary share of
the Company's common stock (HK$0.30 per ADS). The dividend will be paid on
October 31, 2000 to holders of record on October 16, 2000.
The Company, incorporated in Bermuda, was established in 1992 to own
a 51% interest in Shenyang Automotive, a Sino-foreign joint venture enterprise
established in 1991. Shenyang Automotive, located in Shenyang, the capital of
Liaoning Province and the commercial center of northeastern region of China,
is the leading manufacturer and distributor of minibuses in China. In May
1998, the Company acquired an indirect interest in two components
manufacturers: a 51% equity interest in Ningbo Yuming, a wholly foreign-owned
Chinese enterprise primarily engaged in the production of automobile window
molding and stripping; and a 50% equity interest in Mianyang Xinchen, a
Sino-foreign joint venture manufacturer of gasoline engines for use in
passenger vehicles and light duty trucks. In October 1998, the Company
established Xing Yuan Dong as its wholly owned subsidiary to centralize and
consolidate the sourcing of auto parts and components for Shenyang Automotive.
Translation of amounts from Renminbi (Rmb) to U.S. dollars (US$) for the
convenience of the reader has been made at the rate of US$1.00=Rmb 8.28, which
is the rate announced by the People's Bank of China on June 30, 2000. No
representation is made that the Renminbi amounts could have been, or could be
converted into U.S. dollars at that rate or at any other rate. In addition,
all financial information presented herein has been prepared in accordance
with United States generally accepted accounting principles.
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Six-Month Period Ended June 30, 1999 and 2000
US GAAP
6-month 6-month
period ended period ended
(Amounts in thousands, except June 30, 2000 June 30, 1999
for share data) Rmb Rmb
Sales 2,909,679 1,855,803
Cost of sales (1,931,789) (1,232,580)
Gross profit 977,890 623,223
Stock-based compensation expense (88,265) --
Selling and administrative expenses (240,689) (237,772)
Operating income 648,936 385,451
Equity in earnings of associated companies 32,505 18,311
Other income, net (2,770) 7,622
Income before income taxes and
minority interests 678,671 411,384
Income taxes (166,187) (27,345)
Income before minority interests 512,484 384,039
Minority interests in consolidated
subsidiaries (148,284) (117,339)
Net income 364,200 266,700
Earnings per share in Rmb - Basic 0.1197 0.1022
Earnings per share in US$ - Basic 0.0145 0.0124
Earnings per ADS in US$ - Basic 1.4451 1.2351
Earnings per share in Rmb - Diluted 0.1094 0.1022
Earnings per share in US$ - Diluted 0.0132 0.0124
Earnings per ADS in US$ - Diluted 1.3216 1.2351
Adjusted weighted average number of
shares outstanding - Basic 3,043,692,900 2,608,692,900
Adjusted weighted average number of
ADSs outstanding - Basic 30,436,929 26,086,929
Adjusted weighted average number of
shares outstanding - Diluted 3,328,094,867 2,608,692,900
Adjusted weighted average number of
ADSs outstanding - Diluted 33,280,949 26,086,929
On April 14, 2000, the Company's shares traded on the New York Stock
Exchange Inc. were converted to ADSs at a ratio of 100 shares to 1 ADS. 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 periods presented and that all
of the outstanding shares were held in the form of ADSs (at the ratio of 100
shares for each ADS).