China Zenix Auto International Reports 2016 Third Quarter Results

Mr. Martin Cheung, CFO of Zenix Auto, commented, "In the first nine months of 2016, we generated positive cash flow from operations and continued to strengthen our balance sheet in a volatile market environment. Our days sales outstanding ("DSO") improved as our ongoing stringent customer credit system and enhanced collections led to no receivables exceeding 3 months."

2016 Third Quarter Results

Revenue for the third quarter ended September 30, 2016 was RMB492.7 million (US$73.9 million) from RMB478.6 million for the third quarter of 2015. The increase in revenue on a year-over-year basis was mainly driven by the renewed growth in truck sales in China especially heavy-duty and medium-duty trucks.

Aftermarket sales in China decreased by 8.7% year-over-year to RMB227.9 million (US$34.2 million) in the third quarter of 2016 from RMB249.5 million in the third quarter of 2015. Total unit sales in the aftermarket decreased by 12.4% year-over-year while pricing started to stabilize. The aftermarket wheel segment remained weak as the logistic-used truck market remained sluggish and price competition stayed intense.

Sales to the Chinese OEM market increased by 21.7% year-over-year to RMB181.7 million (US$27.2 million) in the third quarter of 2016 compared to RMB149.3 million in the same quarter of 2015. Total unit sales in the OEM market increased by 14.9% year-over-year as a result of strong truck sales, especially heavy- and medium-duty trucks, during the third quarter of 2016.

International sales increased by 4.2% year-over-year to RMB 83.1 million (US$12.5 million) in the third quarter of 2016 compared to sales of RMB79.8 million in the third quarter of 2015. Total unit sales in the international sales also increased by 8.6% year-over-year in the third quarter of 2016 as the Company adjusted pricing and increased its marketing campaign in Southeastern Asian countries.

In the third quarter of 2016, domestic aftermarket sales, domestic OEM sales and international sales contributed 46.2%, 36.9% and 16.9% of revenue, respectively.

Sales of tubed steel wheels comprised 54.9% of 2016 third quarter revenue compared to 55.4% in the same quarter in 2015. Tubeless steel wheel sales represented 35.7% of third quarter revenue compared to 39.2% in the same quarter of 2015. Tubed and tubeless steel wheel sales remain the main sources of revenue for the Company. However, sales of aluminum wheels increased and accounted for 4.9% of third quarter revenue as compared to nil in the same quarter a year ago.

Third quarter gross profit increased by 36.1% to RMB 81.1 million (US$12.2 million), compared to RMB59.6 million in the same quarter in 2015. Gross margin was 16.5%, compared with 12.5% in the third quarter of 2015. The increase in gross margin on a year-over-year basis was mainly driven by the improvement of tubed wheel sales in the Chinese OEM market and tubeless wheel sales in the international market.

Selling and distribution expenses decreased by 11.0% to RMB41.4 million (US$6.2 million) from RMB46.5 million in the third quarter of 2015. The decrease in selling and distribution costs was primarily attributable to central procurement that led to lower transportation costs. As a percentage of revenue, selling and distribution costs were 8.4% in the third quarter of 2016, compared to 9.7% in the same quarter a year ago.

Research and development ("R&D") expenses increased by 44.0% to RMB19.7 million (US$3.0 million), compared to RMB13.7 million in the third quarter of 2015. R&D as a percentage of revenue was 4.0% in the third quarter of 2016, compared to 2.9% in last year's third quarter.

Administrative expenses increased by 15.7% to RMB36.4 million (US$5.5 million) from RMB31.5 million in the third quarter of 2015, mainly due to the depreciation of an office building in the aluminum wheel production facility completed in October 2015. As a percentage of revenue, administrative expenses were 7.4%, compared to 6.6% of revenue in the third quarter of 2015.

Net loss and total comprehensive loss for the third quarter of 2016 were RMB16.0 million (US$2.4 million), compared to net loss and total comprehensive loss of RMB23.8 million in the same quarter of 2015. 

Basic and diluted loss per ADS in the third quarter of 2016 was RMB0.31 (US$0.05) compared to basic and diluted loss per ADS of RMB0.46 in the same quarter of 2015.

In the third quarter of 2016, the Company recorded cash inflows from operating activities of RMB104.0 million (US$15.6 million). Capital expenditures for the purchase of property, plant and equipment in the third quarter were RMB3.0 million (US$0.5 million). Deposits paid for acquisition of property, plant and equipment in the third quarter were RMB6.4 million (US$1.0 million).

During the third quarter of 2016 and 2015, the weighted average number of ordinary shares was 206.5 million and the weighted average number of ADSs was 51.6 million.

2016 First Nine-Month Results

Revenue for the first nine months ended September 30, 2016, was RMB1,657.6 million (US$248.6 million) compared with RMB1,858.3 million in the first nine months in 2015.

Aftermarket sales decreased by 14.8% to RMB772.9 million (US$115.9 million) in the first nine months of 2016, and represented 46.6% of total nine-month revenue. Sales to the Chinese OEM market decreased by 0.2% to RMB601.0 million (US$90.1 million) and represented 36.3% of revenue. International sales decreased by 18.7% to RMB283.7 million (US$42.6 million) compared to the same period last year, and represented 17.1% of revenue.

Tubed steel wheel sales for the first nine months ended September 30, 2016 accounted for 55.4% of revenue compared with 56.9% the same period in 2015. Tubeless steel wheel sales accounted for 36.7% of revenue compared with 37.9% the same period in 2015. Sales of aluminum wheels accounted for 3.4% of revenue for the first nine months ended September 30, 2016 as compared to nil in the same period last year.

Gross profit for the first nine months ended September 30, 2016, was RMB 298.7 million (US$44.8 million), compared with RMB250.9 million during the same period in 2015. Gross margin increased to 18.0% from 13.5% in the same period last year.  Loss before taxation was RMB12.2 million (US$1.8 million), compared with loss before taxation of RMB43.3 million during the first nine months of 2015.

Net loss and total comprehensive loss for the first nine months ended September 30, 2016 was RMB14.3 million (US$2.1 million), compared with net loss and total comprehensive loss of RMB37.2 million during the same period in 2015. Basic and diluted loss per ordinary share and per ADS for the first nine months ended September 30, 2016, were RMB0.07 (US$0.01) and RMB0.28 (US$0.04), respectively.

As of September 30, 2016, Zenix Auto had bank balances and cash of RMB951.8 million (US$142.7 million) and fixed bank deposits with a maturity period over three months of RMB290.0 million (US$43.5 million). Total bank loans were RMB558.0 million (US$83.7 million). Total equity attributable to owners of the Company was RMB2,549.2 million (US$382.3 million).

For the first nine months ended September 30, 2016, the Company recorded cash inflows from operating activities of RMB220.5 million (US$33.1 million). Capital expenditures for the purchase of property, plant and equipment for the first nine months were RMB11.4 million (US$1.7 million). Deposits paid for acquisition of property, plant and equipment for the nine months were RMB11.7 million (US$1.8 million).

Conference Call Information

The Company will host a conference call on Thursday, November 17, 2016 at 8:00 a.m. EST/ 9:00 p.m. Beijing Time. Interested parties may participate in the conference call by dialing +1-877-407-0782 (U.S. Toll Free) or +1-201-689-8567 (International). Please dial in five minutes before the call start time and ask to be connected to the "China Zenix Auto" conference call.

A replay will be available shortly after the conclusion of the conference call through December 17, 2016, at 11:59 p.m. EST. Interested parties may access the replay by dialing +1-877-481-4010 (U.S. Toll Free) or +1-919-882-2331 (International) and using Conference ID 10132 to access the replay.

Exchange Rate Information

The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. All translations from RMB to U.S. dollars are made at a rate of RMB6.6685 to US$1.00, the effective noon buying rate as of September 30, 2016 in The City of New York, for cable transfers of RMB as set forth in the H.10 weekly statistical release of the Federal Reserve Board. The percentages stated are calculated based on RMB amounts.

About China Zenix Auto International Limited

China Zenix Auto International Limited is the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sales volume. The Company offers more than 715 series of aluminum wheels, tubed steel wheels, tubeless steel wheels, and off-road steel wheels in the aftermarket and OEM markets in China and internationally. The Company's customers include large PRC commercial vehicle manufacturers, and it also exports products to over 80 distributors in more than 28 countries worldwide. With six large, strategically located manufacturing facilities in multiple regions across China, the Company has a designed annual production capacity of approximately 15.5 million units of steel and aluminum wheels as of September 30, 2016. For more information, please visit: www.zenixauto.com/en.

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. The Company may make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these risks is included in our filings with the SEC. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law. 

For more information, please contact

Investor Relations
Tel: +1-646-726-6511
Email:  zx@compassbell.com

- tables follow -

China Zenix Auto International Limited Unaudited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income
For the three months ended September 30, 2016 and 2015
(RMB and US$ amounts expressed in thousands, except number of shares and ADSs and per share data)
		2015 Q3	2016 Q3		2016 Q3
		RMB' 000	RMB' 000		US$' 000
Revenue		478,592	492,700		73,885
Cost of sales		(418,974)	(411,584)		(61,721)
Gross profit		59,618	81,116		12,164
Other operating income		6,332	3,346		502
Net exchange gain		1,630	142		21
Selling and distribution costs		(46,549)	(41,445)		(6,215)
Research and development expenses		(13,659)	(19,670)		(2,950)
Administrative expenses		(31,467)	(36,400)		(5,458)
Finance costs		(3,333)	(5,295)		(794)
Loss before taxation		(27,428)	(18,206)		(2,730)
Income tax credit		3,593	2,174		326 Werbung Mehr Nachrichten zur China Zenix Auto International ADR Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 19.04.24 - PR Newswire Redde Northgate Plc - Transaction in Own Shares 19.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc 19.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59