SHANGHAI, April 9, 2018 /PRNewswire/ -- eHi Car Services
Limited ("eHi" or the "Company") (NYSE: EHIC), a leading car rental
and car services provider in China, today announced its unaudited financial
results for the full year ended December 31,
2017.
Unaudited Full Year 2017 Financial Results
Net revenues for the full year of 2017 were
RMB2,739.5 million (US$421.1 million), up 29.9% compared with the
full year of 2016, attributable to increases in net revenues from
both car rentals and car services.
Revenues from car rentals for the full year of
2017 were RMB2,196.5 million
(US$337.6 million), up 32.0% compared
with the full year of 2016, primarily driven by the growing average
available fleet size for car rentals in response to customer
demand.
Revenues from car services for the full year of
2017 were RMB543.1 million
(US$83.5 million), up 21.9% compared
with the full year of 2016, primarily driven by increased demand
from existing and new customers for car services.
Cost of revenues (vehicle operating expenses) for
the full year of 2017 were RMB1,880.3
million (US$289.0 million), up
24.1% compared with the full year of 2016, primarily due to
increased depreciation and labor costs.
In 2017, 13,870 used vehicles were disposed of, and 936 used
vehicles were under sales contracts pending title transfer. The
Company recorded a disposal gain of RMB24.2
million (US$3.7 million) in
aggregate for these 14,806 vehicles1. The gain was
recognized as an adjustment to the vehicle related depreciation
expense as part of the cost of revenues.
Gross profit for the full year of 2017 was
RMB859.2 million (US$132.1 million), up 44.7% year-over-year.
Gross profit margin for the full year of 2017 was
31.4%, compared with 28.1% for the full year of 2016.
Selling and marketing expenses for
the full year of 2017 were RMB139.0
million (US$21.4 million), up
43.1% compared with the full year of 2016 primarily due to
increased sales and promotion activities in 2017.
General and administrative expenses
for the full year of 2017 were RMB270.7
million (US$41.6 million), up
7.4% compared with the full year of 2016, primarily due to
increases in employee-related costs such as salaries and welfare
expenses as a result of increased headcount.
Profit from operations for the full year of 2017
was RMB453.2 million (US$69.7 million), up 77.8% compared with the full
year of 2016.
Interest expense for the full year of 2017 was
RMB280.6 million (US$43.1 million), up 24.7% compared with the full
year of 2016, primarily attributable to the interest expense
associated with the Company's US$400
million senior unsecured notes that was issued in
August 2017.
Net income for the full year of 2017 was
RMB122.2 million (US$18.8 million), compared with RMB33.1 million for the full year of 2016.
Net income margin for the full year of 2017 was 4.5%,
up approximately 290 basis points from 1.6% for the full year of
2016.
Basic and diluted earnings per ADS for the full
year of 2017 were RMB1.76 and
RMB1.75 (US$0.27 and US$0.27), respectively, compared with basic and
diluted earnings per ADS of RMB0.48
each, for the full year of 2016.
Non-GAAP adjusted EBIT for the full year of 2017
was RMB472.7 million (US$72.7 million), up 73.6% compared with the full
year of 2016. Non-GAAP adjusted EBIT
margin for the full year of 2017 was 17.3%, compared with
12.9% for the full year of 2016.
Non-GAAP adjusted EBITDA for the full year of 2017
was RMB1,227.8 million (US$188.7 million), up 30.6% compared with the
full year of 2016. Non-GAAP adjusted
EBITDA margin for the full year of 2017 was 44.8%,
compared with 44.6% for the full year of 2016.
As of December 31, 2017 and 2016,
the Company's cash, cash equivalents and restricted
cash balance was RMB1,283.5
million (US$197.3 million) and
RMB786.6 million, respectively.
1 The gain of
RMB24.2 million is a net amount of (i) the disposal gain and loss
of the 13,870 used vehicles which were disposed of, and (ii) the
disposal loss of the 936 used vehicles which were under sales
contracts pending title transfer. If there is any disposal gain for
the vehicles pending title transfer, such a gain will be recognized
in the next period when the title transfer has been
completed.
|
About eHi Car Services Limited
eHi Car Services Limited (NYSE: EHIC) is one of the leading car
rental and car services providers in China. The Company's mission is to provide
comprehensive mobility solutions as an alternative to car ownership
by best utilizing existing resources and sharing economy to create
optimal value. eHi distinguishes itself in China's fast-growing car rental and car
services market through its complementary business model,
customer-centric corporate culture, broad geographic coverage,
efficient fleet management, leading brand name, and commitment to
technological innovation. eHi is the exclusive strategic partner in
China of Enterprise, the largest
car rental company in the world, and is the designated and
preferred business partner of Ctrip, a leader in the online travel
agency industry in China. For more
information regarding eHi, please visit http://en.1hai.cn.
About Non-GAAP Financial Measures
To supplement its unaudited condensed consolidated financial
statements which are presented in accordance with U.S. GAAP, the
Company uses adjusted EBIT and adjusted EBITDA as non-GAAP
financial measures. Adjusted EBIT represents net income or loss
before share-based compensation, interest expense, interest income,
provision for income taxes, debt extinguishment costs, cost related
to aborted offering. Adjusted EBITDA represents net income or loss
before depreciation and amortization, share-based compensation,
interest expense, interest income, provision for income taxes, debt
extinguishment costs, cost related to aborted offering. The
Company's management believes that adjusted EBIT and adjusted
EBITDA facilitate a better understanding of operating results from
quarter to quarter and provide management with a better capability
to plan and forecast future periods. For more information on the
non-GAAP financial measures, please see the table captioned
"Reconciliation of GAAP and Non-GAAP Results" set forth at the end
of this press release.
Non-GAAP information is not prepared in accordance with GAAP and
may be different from non-GAAP methods of accounting and reporting
used by other companies. The presentation of this additional
information should not be considered a substitute for GAAP results.
A limitation of using these Non-GAAP financial measures excludes
depreciation and amortization, share-based compensation, interest
expense, interest income and provision for income taxes, as
applicable, that have been and will continue to be significant
recurring portions of the Company's business for the foreseeable
future.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 2017, as amended, and the U.S. Private Securities
Litigation Reform Act of 2017. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. eHi may also make
written or oral forward-looking statements in its reports filed
with or furnished 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 to third
parties. Any statements that are not historical facts, including
statements about eHi's beliefs and expectations, are
forward-looking statements that involve factors, risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Such factors and
risks include, but not limited to the following: eHi's goals and
strategies; its future business development, financial condition
and results of operations; its ability to achieve and sustain
profitability; its heavy reliance on its proprietary technology
platform; its ability to compete successfully against current and
future competitors; the expected growth of China's car rentals and car services market;
its ability to sustain its growth rates and manage its expansion
plan; its ability to dispose used vehicles at desirable prices or
timing or through appropriate channels; its ability to raise
sufficient capital to fund and expand its operations at a
reasonable cost; various government policies on automobile control
and purchase restrictions in certain Chinese cities; its ability to
enhance its brand recognition and maintain a high level of customer
satisfaction; its ability to control the losses resulting from
customer violation of traffic rules; and its ability to obtain all
of the requisite permits, licenses or making all of the requisite
filings or registrations or meeting other regulatory requirements
for operating car rentals and car services business in China. Further information regarding these and
other risks, uncertainties or factors is included in the Company's
filings with the SEC. All information provided in this press
release is current as of the date of the press release, and eHi
does not undertake any obligation to update such information,
except as required under applicable law.
For investor and media inquiries, please contact:
eHi Car Services Limited
Tel: +86 (21) 6468-7000 ext. 8830
E-mail: ir@ehic.com.cn
The Piacente Group, Inc.
Ms. Brandi Piacente
Tel: +1-212-481-2050
E-mail: ehi@tpg-ir.com
eHi Car Services
Limited
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2017
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
529,518,517
|
|
671,350,459
|
|
103,184,676
|
Restricted
cash
|
|
257,059,302
|
|
612,121,936
|
|
94,081,419
|
Accounts receivable,
net
|
|
214,767,818
|
|
446,223,596
|
|
68,583,311
|
Prepayments and other
current assets
|
|
727,787,345
|
|
1,505,857,012
|
|
231,445,985
|
Short term loans
receivable
|
|
50,000,000
|
|
50,000,000
|
|
7,684,859
|
Assets held for
sale
|
|
160,732,289
|
|
78,904,246
|
|
12,127,361
|
Deferred tax assets,
current
|
|
1,839,973
|
|
-
|
|
-
|
Total current
assets
|
|
1,941,705,244
|
|
3,364,457,249
|
|
517,107,611
|
|
|
|
|
|
|
|
Cost method
investment
|
|
-
|
|
10,800,000
|
|
1,659,930
|
Property and
equipment, net
|
|
5,723,569,175
|
|
7,057,045,317
|
|
1,084,648,005
|
Intangible
assets
|
|
64,101,470
|
|
66,505,752
|
|
10,221,747
|
Vehicle purchase
deposits
|
|
420,922,908
|
|
367,839,691
|
|
56,535,925
|
Deferred tax assets,
non-current
|
|
649,675
|
|
-
|
|
-
|
Other non-current
assets
|
|
10,010,628
|
|
61,814,009
|
|
9,500,639
|
Total
assets
|
|
8,160,959,100
|
|
10,928,462,018
|
|
1,679,673,857
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
179,877,847
|
|
617,870,011
|
|
94,964,882
|
Accrued expenses and
other current liabilities
|
|
284,574,997
|
|
434,097,575
|
|
66,719,576
|
Income tax
payable
|
|
5,436,989
|
|
18,180,848
|
|
2,794,345
|
Short-term
debt
|
|
926,219,333
|
|
2,657,445,857
|
|
408,441,950
|
Total current
liabilities
|
|
1,396,109,166
|
|
3,727,594,291
|
|
572,920,753
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,767,822,989
|
|
2,957,056,474
|
|
454,491,258
|
Deferred tax
liabilities, non-current
|
|
1,061,542
|
|
27,638,307
|
|
4,247,930
|
Other non-current
liabilities
|
|
4,835,862
|
|
9,626,177
|
|
1,479,516
|
Total
liabilities
|
|
4,169,829,559
|
|
6,721,915,249
|
|
1,033,139,457
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Common
shares
|
|
878,463
|
|
878,663
|
|
135,048
|
Additional paid-in
capital
|
|
4,474,702,198
|
|
4,489,246,326
|
|
689,984,527
|
Accumulated other
comprehensive income
|
|
43,201,465
|
|
121,858,122
|
|
18,729,250
|
Accumulated
deficits
|
|
(527,652,585)
|
|
(405,436,342)
|
|
(62,314,425)
|
Total
shareholders' equity
|
|
3,991,129,541
|
|
4,206,546,769
|
|
646,534,400
|
Total liabilities
and shareholders' equity
|
|
8,160,959,100
|
|
10,928,462,018
|
|
1,679,673,857
|
eHi Car Services
Limited
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income
|
|
|
|
For the
Years Ended December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Net
revenues:
|
|
|
|
|
|
|
Car rentals
|
|
1,663,546,502
|
|
2,196,455,811
|
|
337,589,077
|
Car
services
|
|
445,397,923
|
|
543,066,377
|
|
83,467,774
|
Total net
revenues
|
|
2,108,944,425
|
|
2,739,522,188
|
|
421,056,851
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
(1,515,281,510)
|
|
(1,880,348,975)
|
|
(289,004,346)
|
Gross
profit
|
|
593,662,915
|
|
859,173,213
|
|
132,052,505
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
(97,187,525)
|
|
(139,031,953)
|
|
(21,368,820)
|
General and
administrative expenses
|
|
(251,938,077)
|
|
(270,670,181)
|
|
(41,601,245)
|
Other operating
income
|
|
10,310,089
|
|
3,762,667
|
|
578,311
|
Total operating
expenses
|
|
(338,815,513)
|
|
(405,939,467)
|
|
(62,391,754)
|
Profit from
operations
|
|
254,847,402
|
|
453,233,746
|
|
69,660,751
|
|
|
|
|
|
|
|
Interest
income
|
|
8,413,945
|
|
14,962,132
|
|
2,299,638
|
Interest
expense
|
|
(224,959,389)
|
|
(280,584,832)
|
|
(43,125,099)
|
Other income,
net
|
|
1,444,129
|
|
1,957,019
|
|
300,788
|
Early extinguishment
of debt costs
|
|
-
|
|
(19,976,776)
|
|
(3,070,374)
|
Income before
income taxes
|
|
39,746,087
|
|
169,591,289
|
|
26,065,704
|
Provision for income
taxes
|
|
(6,610,971)
|
|
(47,375,046)
|
|
(7,281,411)
|
Net
income
|
|
33,135,116
|
|
122,216,243
|
|
18,784,293
|
|
|
|
|
|
|
|
Net
income
|
|
33,135,116
|
|
122,216,243
|
|
18,784,293
|
Changes in cumulative
foreign currency translation
adjustment, net of tax of nil
|
|
(31,353,357)
|
|
78,656,657
|
|
12,089,307
|
Comprehensive
income
|
|
1,781,759
|
|
200,872,900
|
|
30,873,600
|
|
|
|
|
|
|
|
Weighted average
number of common shares used
in computing net income per share
|
|
|
|
|
|
|
Basic
|
|
137,621,702
|
|
138,794,624
|
|
138,794,624
|
Diluted
|
|
138,552,031
|
|
139,593,917
|
|
139,593,917
|
|
|
|
|
|
|
|
Net income
per share attributable to common
shareholders
|
|
|
|
|
|
|
Basic
|
|
0.24
|
|
0.88
|
|
0.14
|
Diluted
|
|
0.24
|
|
0.88
|
|
0.13
|
|
|
|
|
|
|
|
Earnings per
ADS*
|
|
|
|
|
|
|
Basic
|
|
0.48
|
|
1.76
|
|
0.27
|
Diluted
|
|
0.48
|
|
1.75
|
|
0.27
|
|
|
|
|
|
|
|
* Each ADS
represents two Class A common shares
|
eHi Car Services
Limited
|
Reconciliation of
GAAP and Non-GAAP Results
|
|
|
|
|
For the Years Ended December
31,
|
|
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Net
Income
|
|
|
33,135,116
|
|
122,216,243
|
|
18,784,293
|
Add /
(subtract):
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
16,040,947
|
|
13,588,843
|
|
2,088,567
|
Interest
income
|
|
|
(8,413,945)
|
|
(14,962,132)
|
|
(2,299,638)
|
Interest
expense
|
|
|
224,959,389
|
|
280,584,832
|
|
43,125,099
|
Provision for income
taxes
|
|
|
6,610,971
|
|
47,375,046
|
|
7,281,411
|
Debt extinguishment
cost
|
|
|
-
|
|
19,976,776
|
|
3,070,374
|
Cost related to
aborted offering
|
|
|
-
|
|
3,923,420
|
|
603,019
|
Adjusted
EBIT
|
|
|
272,332,478
|
|
472,703,028
|
|
72,653,125
|
Depreciation and
amortization
|
|
|
668,018,252
|
|
755,065,789
|
|
116,051,487
|
Adjusted
EBITDA
|
|
|
940,350,730
|
|
1,227,768,817
|
|
188,704,612
|
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SOURCE eHi Car Services Limited