HK000KL3_ShortHK000KL3 Interim report 2007 30 Aug 2007.
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Transcript of HK000KL3_ShortHK000KL3 Interim report 2007 30 Aug 2007.
HK000KL3_ShortHK000KL3
Interim report 2007Interim report 200730 Aug 200730 Aug 2007
HK000KL3_Short
I 、 PRC Auto Industry Overview in 1H2007 II 、 DFG Business Overview in 1H2007 III 、 DFG Financial Performance in 1H2007 IV 、 Outlook of DFG and PRC Auto Industry in 2007
I 、 PRC Auto Industry Overview in 1H2007 II 、 DFG Business Overview in 1H2007 III 、 DFG Financial Performance in 1H2007 IV 、 Outlook of DFG and PRC Auto Industry in 2007
HK000KL3_Short
I 、 PRC Auto Industry Overview in 1H2007 I 、 PRC Auto Industry Overview in 1H2007 1. Rapid Development of PRC Auto Industry
2. More Extensive Choices for Consumers with Constant Launch of New Models
3. CV Growth Higher than Industry Expectation, with Heavy Duty Truck Segment Recording Outstanding Increase
4. Overall Industry Profitability Improved , while Downward Price Pressure Still Exists
5. Auto Consumption Expands from 1st Tier Cities to 2nd Tier Cities, Which Rapidly Drives Auto Sales Growth
6. Rapidly Rising Self-owned Brands Which Targets at Low End Market
HK000KL3_Short- 4 -
1,2901,024
2,040
0500
1,0001,5002,0002,500
2006 1H2006 1H2007
Growth Rate:
25.9%
7,216
3,547
4,374
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2006 1H2006 1H2007
1. Rapid Growth of PRC Auto Industry 1. Rapid Growth of PRC Auto Industry
PRC Total Vehicle Sales VolumePRC Total Vehicle Sales Volume PRC Total PV Sales Volume1PRC Total PV Sales Volume1
000’ units 000’ units
PRC Total CV Sales VolumePRC Total CV Sales Volume
000’ units
China Association of Automobile Manufactures (CAAM)China Association of Automobile Manufactures (CAAM)Note1Note1 :: According to CAAM’s segmentation, passenger vehicles include passenger car, MPV, SUVAccording to CAAM’s segmentation, passenger vehicles include passenger car, MPV, SUV and cross-over vehiclesand cross-over vehicles
Growth rate: 23.3%
5,176
3,0842,523
0
2,000
4,000
6,000
2006 1H2006 1H2007
Growth Rate:
22.2%
HK000KL3_Short- 5 -
2. More Extensive Choices for Consumers with Constant Launch of New Models
2. More Extensive Choices for Consumers with Constant Launch of New Models
2
3
11
1
8
7
1
2
14
2
0123456789
J an Feb Mar Apr May J un
Brand new f ace- l i f t
FebFeb MarMar AprApr MayMay
Below 100,000Below 100,000
100,000—200,000100,000—200,000
200,000- 300,000200,000- 300,000
Brand New PV Models in 1H2007Brand New PV Models in 1H2007
RIORIO千里千里马马
长安天语长安天语
JanJan JunJun
荣荣威威
S-MAXS-MAX
三厢威志三厢威志两厢两厢 F3F3奇瑞奇瑞 A1A1骊威骊威两厢天语两厢天语
长安杰勋长安杰勋 卡罗拉卡罗拉
浪迪浪迪
明锐明锐海马海马 33
森雅森雅
瑞鹰瑞鹰
16, 49%
9, 27%
2, 6%
4, 12%2, 6%
bel ow10 10—15 15- - 20 20—30 above30
Model Launches and Price Range DistributionModel Launches and Price Range Distribution
RMB0,000RMB0,000
HK000KL3_Short- 6 -
3. CV Growth Higher than Industry Expectation, with Heavy Duty Truck Segment Recording Outstanding Increase
3. CV Growth Higher than Industry Expectation, with Heavy Duty Truck Segment Recording Outstanding Increase
Favorable Macro Economy Boosted Fast Growth of HDTFavorable Macro Economy Boosted Fast Growth of HDT
Impact from Implementation of Weight TollingImpact from Implementation of Weight Tolling
Upgrade of Highway Transportation Network and Demand Growth Upgrade of Highway Transportation Network and Demand Growth for Highway Freight for Highway Freight
Pre-consumption of HDT Due to Coming Implementation of Pre-consumption of HDT Due to Coming Implementation of National III Emission StandardNational III Emission Standard
HK000KL3_Short- 7 -
4. Overall Industry Profitability Improved , while Downward Price Pressure Still Exists
4. Overall Industry Profitability Improved , while Downward Price Pressure Still Exists
Improved Improved AAuto Industry Profitabilityuto Industry Profitability
Mid 2007 Mid 2006 Growth/rate
Number of Enterprises
288 249 39
Loss-making Enterprises
60 74 -14
Major Business Revenue( 100mn)
4863.76 3842.59 26.58%
Sales Profit Margin
6.21% 4.74% 1.47%
Total Profit (000mn)
302.06 182.19 65.79%
ROE 8.54% 6.06% 2.48%
StabilizingStabilizing A Auto Industry Profitabilityuto Industry Profitability
Source: CICC Research ReportSource: CICC Research Report
SourceSource :: CAACCAAC
HK000KL3_Short- 8 -
5. Rapidly Rising Self-owned Brands Which Targets at Low End Market
5. Rapidly Rising Self-owned Brands Which Targets at Low End Market
Market Position of Self-owned Brands Market Position of Self-owned Brands Rapidly EnhancedRapidly Enhanced
22%20%
24% 25%29%
0%
5%
10%
15%
20%
25%
30%
35%
2003 2004 2005 2006 1H2007
Market Share
Sel f - ownedbrand, 29%
J apanese,26%
German, 20%
Amer i can,14%
Korean, 6%French, 4%
Sel f - owned brand J apanese German
Amer i can Korean French
Self-owned Brands Target at Low Self-owned Brands Target at Low Medium End MarketsMedium End Markets
Source : CICC Auto Industry Report
HK000KL3_Short- 9 -
6. Auto Consumption Expands from 1st Tier Cities to 2nd Tier Cities, Which Rapidly Drives Auto Sales Growth
6. Auto Consumption Expands from 1st Tier Cities to 2nd Tier Cities, Which Rapidly Drives Auto Sales Growth
0
10
20
30
40
50
Bei j i ng Shanghai Guangzhou Shenzhou100 househol ds ownershi p rate
Ownership Rate in 1Ownership Rate in 1stst Tier Cities Tier Cities
0
10
20
30
40
50
100 househol ds ownershi p rate
Ownership Rate in 1st Tier CitiesOwnership Rate in 1st Tier Cities
Source:CICC Auto Industry Report
HK000KL3_Short
II 、 DFG Business Overview in 1H2007II 、 DFG Business Overview in 1H2007
1. Stable Growth of DFG Business in 1H2007
2. Segments Sales and Market Share of DFG
3. Stable Growth of DFG PV Business
4. Constant Launch of Competitive New Models
5. Steady Production Capacity Expansion Plan
6. Continuous Improvement of Local Content Ratio
HK000KL3_Short- 11 -
Steady Growth of PV SalesSteady Growth of PV SalesSteady Growth of Auto SalesSteady Growth of Auto Sales
Rapid Growth of CV BusinessRapid Growth of CV Business
1. Stable Growth of DFG Business in 1H20071. Stable Growth of DFG Business in 1H2007
DFG’s total sales reached 460,000 units in 1H2007, representing a YoY growth of 28.5%, higher than the industry average of 23.3%. Among which, PV sales grew by 28.3%, and CV sales grew by 28.8%.
751
358
460
0
100
200
300
400
500
600
700
800
2006 1H2006 1H2007
000’units
Growth rate:
28.5%
495
233
299
0
100
200
300
400
500
600
2006 1H2006 1H2007
Growth rate:
28.3%
000’units
256
125
161
0
50
100
150
200
250
300
2006 1H2006 1H2007
Growth rate:
28.8%
000’units
HK000KL3_Short- 12 -
43. 80
2. 35 3. 336. 70 5. 00
10. 10
20. 5
1. 1 1. 7 3. 3 2. 35. 2
26
1. 7 2. 24. 4 3. 2
6. 4
0. 00
5. 00
10. 00
15. 00
20. 00
25. 00
30. 00
35. 00
40. 00
45. 00
50. 00
Basi c MPV SUV HDT MDT LCV
2006 1H2006 1H2007
■ 11.4% ■ 11.3% ■11.4%
■ 12.3% ■ 11.6% ■15.9% ■ 14% ■ 14.9% ■13.9%■ 21.8% ■ 21.6% ■17.2%
■ 24.8% ■ 23.7% ■26%
■ 10.6% ■ 10.5% ■11.3%
000’ units
2. Segments Sales and Market Share of DFG 2. Segments Sales and Market Share of DFG
HK000KL3_Short- 13 -
0’unit0’unit
3. Stable Growth of DFG PV Business3. Stable Growth of DFG PV Business
DFG total sales reached 299,000 units in 1H2007, representing a YoY increase of 28.3%
99,231128,168
0
100,000
200,000
1H2006 1H2007
Dongfeng Nissan Company LtdDongfeng Nissan Company Ltd
Growth rate:
29.16%
100,173
101,729
98,000
100,000
102,000
1H2006 1H2007
Growth rate:
1.55%
Dongfeng Peugeot Citroen Co.,LtdDongfeng Peugeot Citroen Co.,LtdPSA Peugeot Citroën
20,006
53,822
0
50,000
100,000
1H2006 1H2007
Dongfeng Honda Automobile Dongfeng Honda Automobile Co.,LtdCo.,Ltd
Growth rate:
169.03%
HK000KL3_Short- 14 -
4. Constant Launch of Competitive New Models4. Constant Launch of Competitive New Models
1H20071H2007
Model
3 brand-new models were launched in 1H3 brand-new models were launched in 1H
20062006
New Peugeot3
07
New Teana
Peugeot 206
Civic
C-Triomph
e
Sylphy
C2
Livina GenissN
ew m
odel
s la
unch
ed in
200
6
New PicassoNew Picasso
LivinaLivina
New CRVNew CRV
Newly launched models were well Newly launched models were well received by the marketreceived by the market
Dongfeng Peugeot Citroen (DPCA)
On March 24th, brand new Sara Picasso was launched to the market. By the end of July, aggregate sales reached approximately 4000 units
Dongfeng Motor Company (DFL)
On April 22nd, DFL’s brand new Livina made its debut. By the end of July, aggregate sales reached 19585 units
Dongfeng Honda Automobile Co.,Ltd (DHAC)
On April 18th , Dongfeng Honda new CRV went to the market. It has been warmly received by the market ever since its debut. By the end of July, aggregate sales reached 15047 units.
HK000KL3_Short- 15 -
5. Steady Production Capacity Expansion Plan5. Steady Production Capacity Expansion Plan
SSteady Production Capacity Expansion Planteady Production Capacity Expansion Plan
000’units000’units
320
625
345
720
413
820
0
100
200
300
400
500
600
700
800
900
CV PV
2006 1H2007 2008E
DFG Production Capacity and Utilization Rate
716 745
9451065
422.4598.2
756.3
48559%
80.30% 80.03%91%
0
200
400
600
800
1000
1200
2004 2005 2006 1H2007
0%
20%
40%
60%
80%
100%
Capaci ty Turn out Ut i l i zat i on
Steady Growth of Utilization Steady Growth of Utilization RRateate
000’units000’units
HK000KL3_Short- 16 -
6. Continuous Improvement of Local Content Ratio6. Continuous Improvement of Local Content Ratio
Company
Models Localization Rate in 1H2007
Localization Rate by 2007 end
Future Improvement Plan
DPCA Fukang 89% 92% 94%
Elysee 88% 91% 95%
C2 79% 84% 85%
206 80% 84% 85%
Picasso 62% 64% 65%
C-Triomph 70% 82% 85%
307 81% 87% 89%
DFL Teana 66% 67%
Tiida/Tiida Hatchback
70% 75%
Sylphy 60% 66%
Livina Geniss 65% 71%
Livina 70% 70%
DHAC CIVIC 80% 80% 80%
CRV 66% 66% 70%
HK000KL3_Short
III. DFG Financial Performance in 1H2007III. DFG Financial Performance in 1H2007
1. Stable Growth of Major Business
2. Steady Growth of Gross Profit
3. Ever Enhanced Profitability and Operation Effectiveness
HK000KL3_Short- 18 -
1. Stable Growth of Major Business1. Stable Growth of Major Business
Sales Revenue Structure and BreakdownSales Revenue Structure and BreakdownSales Revenue GrowthSales Revenue Growth
23, 282
28, 809
0. 00
5, 000. 00
10, 000. 00
15, 000. 00
20, 000. 00
25, 000. 00
30, 000. 00
35, 000. 00
1H2006 1H2007
1系列
23.7%
Million RMB Million RMB
1633920727
7637
6534
0
5000
10000
15000
20000
25000
30000
1H2006 1H2007PV CV
2328223282
2880928809
70.81% 70.18% 71.94%
27.54% 28.06% 26.51%
1.66% 1.76% 1.55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 1H2006 1H2007
PV CV Others
HK000KL3_Short- 19 -
2. Steady Growth of Gross Profit2. Steady Growth of Gross Profit
PV GP MarginPV GP MarginDDFG Gross Profit and GP MarginFG Gross Profit and GP Margin
CV GP MarginCV GP Margin
Million RMBMillion RMB
6,096
8,206
4,0844,991
14.6%
17.0% 17.5% 17.3%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2005 2006 1H2006 1H2007
0%
4%
8%
12%
16%
20%
Gross Profit GP Margin
15.8%18.9% 19.6% 18.4%
0.0%
10.0%
20.0%
2005 2006 1H2006 1H2007
11.3% 12.0% 13.0% 14.8%
0.0%
10.0%
20.0%
2005 2006 1H2006 1H2007
HK000KL3_Short- 20 -
3. Ever Enhanced Profitability and Operation Effectiveness
3. Ever Enhanced Profitability and Operation Effectiveness
1601
2081
1114
1945
3.84% 4.31%4.80%
6.80%
0
500
1000
1500
2000
2500
2005 2006 1H2006 1H2007
0.00%
2.00%
4.00%
6.00%
8.00%
Net Profi t NP Margi n
13.12%14.56%
16.70%
24.50%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2005 2006 1H2006 1H2007
NP Margi n
Improved ROEImproved ROEImproved Net Profit & NP MarginImproved Net Profit & NP Margin
Improved Turnover RateImproved Turnover Rate
Million RMBMillion RMB
62
65
68
65
59
5456
5860
6264
6668
70
1H2005 2005 1H2006 2006年 1H2007
Turnover days
HK000KL3_Short
IV. Growth Prospect of PRC Auto Industry & DFG in 2007IV. Growth Prospect of PRC Auto Industry & DFG in 2007
HK000KL3_Short- 22 -
Growth Prospect of PRC Auto IndustryGrowth Prospect of PRC Auto Industry
According to the forecast of our Group’s business plan, total PRC auto demand would reach 8,573,000 units in 2007 ( including 157,000 units of imported vehicles); annual PV demand would reach 6,321,000 units( if imported PV 150,000 units excluded, sales of domestically manufactured PV would be 6,171,000 units), representing a growth of 16.96% compared with total sales of 5,404,000 units in 2006( including 227,700 units of imported PVs; total CV sales is expected to reach 2,252,000 units ( including 7000 units imported CV ), with a YoY growth of 9.8%.
Annual sales target of our Group is between 900,000 units to 950,000 units with a sales breakdown of 70:30 between PV and CV.
HK000KL3_Short- 23 -
Thanks