EX-99.1 2 tv490678_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

eHi Car Services Announces Full Year 2017 Results

 

SHANGHAI, April 09, 2018 – 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.

 

 

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.

 

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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.

 

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.

 

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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

 

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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 

 

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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

 

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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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