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eHi Car Services net income rises 460% to $4.5 million in Q2 2017

08/30/2017| 10:40:52 AM| 中文

Net revenues increased by 27.6% year-over-year to RMB 639.7million.

eHi Car Services, a leading car rental and car services provider in China, announced its unaudited financial results for the second quarter ended June 30, 2017, on August 28.

  1. Net revenues increased by 27.6% year-over-year to RMB 639.7million
     
  2. Net income was RMB 30.4 million comparing to RMB 0.8 million year-over-year
     
  3. Non-GAAP adjusted EBITDA increased by 31.4% year-over-year to RMB 286.2 million
     
  4. Continued margin expansion by achieving non-GAAP adjusted EBITDA margin of 44.7%

Second Quarter 2017 Highlights

Net revenues
increased by 27.6% year-over-year to RMB 639.7 million (USD 94.4 million) for the second quarter of 2017, from RMB 501.3 million for the second quarter of 2016, driven by increased net revenues from both car rentals and car services.

In the second quarter of 2017, 2,591 used vehicles were disposed of, and 1,613 used vehicles were under sales contracts pending title transfer. The company recognized a disposal gain of RMB 2.5 million (USD 0.4 million) in aggregate for these 4,204 vehicles.

Gross profit for the second quarter of 2017 was RMB 186.0 million (USD 27.4 million), up 31.4% year-over-year. Gross profit margin for the second quarter of 2017 was 29.1%, compared with 28.2% for the second quarter of 2016.

Selling and marketing expenses for the second quarter of 2017 were RMB 35.8 million (USD 5.3 million), up 33.6% year-over-year, as it expanded advertising and branding activities in the second quarter of 2017.

General and administrative expenses for the second quarter of 2017 were RMB 59.9 million (USD 8.8 million), up 1.2% year-over-year, primarily due to increased employee-related costs including salaries and welfare expenses as a result of increased headcount in the second quarter of 2017.

Interest expense for the second quarter of 2017 slightly increased by 0.5% to RMB 56.7 million (USD 8.4 million), compared with the second quarter of 2016.

Provision for income taxes for the second quarter of 2017 increased by 206.7% to RMB 7.7 million (USD 1.1 million), compared with RMB2.5 million for the second quarter of 2016 due to the expansion of income before income taxes.

Net income for the second quarter of 2017 was RMB 30.4 million (USD 4.5 million), compared with a net income of RMB 0.8 million for the second quarter of 2016. Net income margin for the second quarter of 2017 was 4.7%, compared with a net income margin of 0.2% for the second quarter of 2016.

Basic and diluted earnings per ADS for the second quarter of 2017 were RMB 0.44 (USD 0.06) each, compared with basic and diluted earnings per ADS of RMB0.01 each for the second quarter of 2016.

Non-GAAP adjusted EBIT increased by 59.0% year-over-year to RMB 95.9 million (USD 14.1 million) for the second quarter of 2017, from RMB 60.3 million for the second quarter of 2016. Non-GAAP adjusted EBIT margin increased to 15.0% for the second quarter of 2017, from 12.0% for the second quarter of 2016.

Non-GAAP adjusted EBITDA increased by 31.4% year-over-year to RMB 286.2 million (USD 42.2 million) for the second quarter of 2017, from RMB 217.9 million for the second quarter of 2016. Non-GAAP adjusted EBITDA margin increased to 44.7% for the second quarter of 2017, from 43.5% for the second quarter of 2016.

As of June 30, 2017, the Company's cash, cash equivalents and restricted cash balance was RMB 571.3 million (USD 84.3 million).

Outlook

The Company estimates that net revenues for the third quarter of 2017 will range from RMB 780 million to RMB 800 million, and for full year of 2017 will be RMB 2.9 billion.

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TAGS: eHi Car Services | financial statement
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