CAR Inc. reports huge increase in profit for Q3
Rental revenue was RMB3,214 million, an increase of 50% y-o-Net profit was RMB1,001 million, compared with RMB327 million in the same period of 2014.
CAR Inc. announced it unaudited consolidated Q3 results for the nine months that ended 30 September 2015.
Rental revenue was RMB3,214 million, an increase of 50% y-o-Net profit was RMB1,001 million, compared with RMB327 million in the same period of 2014. Basic earnings per share was RMB0.423, compared with RMB0.175 for the same period of 2014. Total assets were RMB17,082 million as at 30 September, 2015 compared with RMB9,842 million as at 31 December 2014.
Total fleet size was 93,204 vehicles as at 30 September, 2015, compared with 63,552 vehicles as at 31 December, 2014. CAR Inc’s short-term rental business continued to perform strongly. Average daily rental revenue per short-term rental vehicle and average daily rental rate were RMB175 and RMB274 during the period, compared with RMB173 and RMB277 in the same period of 2014, respectively. The fleet utilization rate increased to 64.1% from 62.5% in the same period of 2014.
Additionally, CAR Inc continued to see strong synergies between short-term rentals and chauffeured car services through fleet sharing during weekdays. On 16 September 2015, CAR Inc further invested $50 million in UCAR’s Series B fund raising. It held approximately 9.85% of the total issued and outstanding shares of UCAR as of 30 September 2015.
CAR Inc’s chairman and CEO Charles Lu, commented, “I am pleased to announce yet another successful quarter for CAR. Our core rental revenue remained solid as our operating metrics continued to improve. Through our collaboration with UCAR, we are establishing an intelligent mega fleet management platform for auto mobility solutions, which will allow us to capture the growth opportunities in both self-drive and on-demand chauffeured service markets. Through technology innovation along with our industry expertise, such transformation will enable us to maximize fleet efficiency and utilization, as well as enjoy greater cost advantages.”
“As a critical component of our strategy in expanding along the value chain, we launched offline pilot stores in eight third-tier cities in October to build our own used car direct sales and service network. Our vision is to become the No.1 B2C used car brand in China. With our premium brand and reliable products offerings, we are confident that we will be able to streamline intermediate costs and realize higher residual values. Meanwhile, this initiative will enable us to better manage the full life cycle of rental vehicles and capture the growth potentials in China’s used car market.”
CAR Inc’s CFO Wilson Li, added, “For the first nine months of 2015, we recorded robust revenue growth and strong profitability. We expanded our adjusted net margin to 23% and adjusted EBITDA margin to 64%, through optimizing business mix, improving operating leverage and increasing operating efficiencies. During the period, we continued to enhance internal controls and implement comprehensive corporate governance initiatives to support new business and ensure shareholder value. Finally, we are delighted to see a very strong and healthy balance sheet with more diversified and sustainable funding source.”