Bitauto Announces Fourth Quarter and Fiscal Year 2015 Results

Mar 08, 2016, 05:10 ET from Bitauto Holdings Limited

BEIJING, March 8, 2016 /PRNewswire/ -- Bitauto Holdings Limited ("Bitauto" or the "Company") (NYSE: BITA), a leading provider of internet content and marketing services for China's fast-growing automotive industry, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 20151.

Fourth Quarter and Fiscal Year 2015 Highlights 

  • Revenue in the fourth quarter of 2015 was RMB1.24 billion (US$191.3 million), a 27.1% increase from the corresponding period in 2014. Revenue in fiscal year 2015 was RMB4.01 billion (US$619.3 million), a 63.1% increase from 2014.
  • Gross profit in the fourth quarter of 2015 was RMB902.8 million (US$139.4 million), a 35.2% increase from the corresponding period in 2014. Gross profit in fiscal year 2015 was RMB2.78 billion (US$429.5 million), a 49.4% increase from 2014.
  • Non-GAAP profit in the fourth quarter of 2015 was RMB112.2 million (US$17.3 million), compared to a non-GAAP profit of RMB197.4 million (US$30.5 million) in the corresponding period in 2014. Non-GAAP profit in fiscal year 2015 was RMB367.7 million (US$56.8 million), compared to a non-GAAP profit of RMB510.9 million (US$78.9 million) in 2014.
  • Non-GAAP basic and diluted profit per ADS in the fourth quarter of 2015 was RMB1.68 (US$0.26) and RMB1.63 (US$0.25), respectively. Non-GAAP basic and diluted profit per ADS in fiscal year 2015 was RMB5.86 (US$0.90) and RMB5.47 (US$0.84), respectively.

Mr. William Li, chief executive officer and chairman of Bitauto commented, "We are pleased to announce healthy results for the fourth quarter of 2015, with revenue growing 27.1% year-over-year. For the full year 2015, Bitauto made significant progress across our businesses and delivered strong growth. Our top-line grew 63.1% year-over-year, with revenue from our EP platform growing 122.3% year-over-year in 2015."

"In 2015, Bitauto generated over 100 million sales leads for our automobile customers, with approximately 70% of leads generated from mobile. Our EP platform maintained its industry leading position with peak paid customers exceeding 24,900 in 2015. We continued to make strategic investments and expanded our automobile transaction services offering in order to optimize consumers' automobile buying experience online and offline. We have successfully developed various growth initiatives in Bitauto's automobile transaction services business which have been well received by the market."

"Looking to 2016, we will continue to execute on Bitauto's core business strategies to strengthen our industry leadership. First, we will continue to optimize our offline service infrastructure, further develop our transaction services, including automobile transactions, CRM and automotive financing services, and improve the overall efficiency of our transaction services. Second, we will strive to further improve the automobile buying experience for customers and enhance Bitauto's brand in the automobile transaction market. Third, we will continue to increase our mobile monetization capability from core businesses, such as advertising and transaction services, through tighter integration with our mobile offerings."

Mr. Andy Zhang, chief operating officer and chief financial officer of Bitauto, said, "Over the past year, Bitauto continued to invest in building our brand and expanding our core businesses, especially the automobile transaction services business. In 2016, we will focus on maintaining growth while enhancing our operating efficiency and solidifying our long-term competitiveness. Beginning from the first quarter of 2016, Bitauto will change its accounting standards from International Financial Reporting Standards (IFRS) to accounting principles generally accepted in the United States of America (U.S. GAAP). In addition, in order to better reflect Bitauto's business structure and provide more clarity regarding its operating performance, beginning from the first quarter of 2016, the company will report financial results across three business segments: advertising and subscription business, transaction services business and digital marketing solutions business."

Fourth Quarter 2015 Results 

Bitauto reported revenue of RMB1.24 billion (US$191.3 million) for the fourth quarter of 2015, including advertising and subscription revenue of RMB1.06 billion (US$163.6 million) and agent service revenue2 of RMB179.6 million (US$27.7 million), representing a 27.1% increase from the corresponding period in 2014. The increase in revenue was primarily attributable to the growth of the Company's EP platform business and advertising business.

Cost of revenue for the fourth quarter of 2015 was RMB336.6 million (US$52.0 million), representing a year-over-year increase of 9.4% from RMB307.7 million (US$47.5 million). Cost of revenue as a percentage of revenue in the fourth quarter of 2015 was 27.2%, compared to 31.6% in the corresponding period in 2014.

Gross profit for the fourth quarter of 2015 was RMB902.8 million (US$139.4 million), representing a 35.2% increase from the corresponding period in 2014.

Selling and administrative expenses were RMB1.17 billion (US$181.0 million) for the fourth quarter of 2015, representing an increase of 178.1% from the corresponding period in 2014. This increase was primarily attributable to the increase in headcount and related expenses, mobile marketing efforts, amortization of intangible assets relating to the strategic cooperation with JD.com as well as write-down of assets.

Product development expenses were RMB88.8 million (US$13.7 million) for the fourth quarter of 2015, a 74.7% increase from the corresponding period in 2014. The increase was primarily due to an increase in product development headcount and related expenses.

Share-based payment expenses, which were allocated to related operating expense line items, were RMB27.6 million (US$4.3 million) in the fourth quarter of 2015, compared to RMB34.0 million (US$5.2 million) in the corresponding period in 2014.

IFRS operating loss in the fourth quarter of 2015 was RMB364.1 million (US$56.2 million), compared to an operating profit of RMB194.2 million (US$30.0 million) in the corresponding period in 2014. This was primarily attributable to increased compensation expense resulting from an increase in both headcount and the level of salaries and benefits, marketing expense, amortization of intangible assets related to the strategic cooperation with JD.com, as well as write-down of assets.

Non-GAAP operating profit in the fourth quarter of 2015 was RMB108.7 million (US$16.8 million), compared to a non-GAAP operating profit of RMB239.4 million (US$37.0 million) in the corresponding period in 2014.

Income tax expense in the fourth quarter of 2015 was RMB7.3 million (US$1.1 million), compared to RMB38.5 million (US$5.9 million) in the corresponding period in 2014.

IFRS loss in the fourth quarter of 2015 was RMB314.3 million (US$48.5 million), compared to an IFRS profit of RMB150.0 million (US$23.2 million) in the corresponding period in 2014. Basic and diluted loss per ADS, each representing one ordinary share, in the fourth quarter of 2015 amounted to RMB5.30 (US$0.82) and RMB5.30 (US$0.82), respectively.

Non-GAAP profit in the fourth quarter of 2015 was RMB112.2 million (US$17.3 million), compared to a non-GAAP profit of RMB197.4 million (US$30.5 million) in the corresponding period in 2014. Non-GAAP basic and diluted profit per ADS in the fourth quarter of 2015 amounted to RMB1.68 (US$0.26) and RMB1.63 (US$0.25), respectively.

Fourth Quarter 2015 Business Segment Results 

Revenue from the advertising business for the fourth quarter of 2015 was RMB455.2 million (US$70.3 million), representing a 1.4% increase from the corresponding period in 2014.

Cost of revenue for the advertising business for the fourth quarter of 2015 was RMB83.3 million (US$12.9 million), compared to RMB109.9 million (US$17.0 million) for the corresponding period in 2014. Cost of revenue as a percentage of revenue in the fourth quarter of 2015 was 18.3%, compared to 24.5% in the corresponding period in 2014.

Gross profit from the advertising business for the fourth quarter of 2015 was RMB371.9 million (US$57.4 million), representing a 9.7% increase from the corresponding period in 2014.

Operating profit from the advertising business for the fourth quarter of 2015 was RMB134.6 million (US$20.8 million), representing a 19.7% increase from the corresponding period in 2014.

Revenue from the EP platform business for the fourth quarter of 2015 was RMB604.5 million (US$93.3 million), representing a 78.0% increase from the corresponding period in 2014. The increase was attributable to an increase in transaction services including automobile transactions, customer relationship management and automotive financing services, as well as an increase in the number of paid customers.

Cost of revenue for the EP platform business for the fourth quarter of 2015 was RMB167.0 million (US$25.8 million), representing a year-over-year increase of 17.8% from RMB141.7 million (US$21.9 million) for the corresponding period in 2014. Cost of revenue as a percentage of revenue in the fourth quarter of 2015 was 27.6%, compared to 41.7% in the corresponding period in 2014.

Gross profit from the EP platform business for the fourth quarter of 2015 was RMB437.5 million (US$67.5 million), representing a 121.1% increase from the corresponding period in 2014.

Operating loss from the EP platform business for the fourth quarter of 2015 was RMB502.5 million (US$77.6 million), compared to an operating profit of RMB12.2 million (US$1.9 million) in the corresponding period in 2014. This was primarily attributable to the increased investment in transaction services on the EP platform, an increase in amortization of intangible assets relating to the strategic cooperation with JD.com as well as write-down of assets.

Revenue from the digital marketing solutions business for the fourth quarter of 2015 was RMB179.6 million (US$27.7 million), compared to RMB186.6 million (US$28.8 million) for the corresponding period in 2014.

Cost of revenue for the digital marketing solutions business for the fourth quarter of 2015 was RMB86.3million (US$13.3 million), representing a year-over-year increase of 53.9% from RMB56.1 million (US$8.7 million) for the corresponding period in 2014. The increase was mainly due to an increase in personnel expenses of employees directly engaged in revenue-generating activities.

Gross profit from the digital marketing solutions business for the fourth quarter of 2015 was RMB93.3 million (US$14.4 million), compared to a gross profit of RMB130.5 million (US$20.2 million) for the corresponding period in 2014.

Operating profit from the digital marketing solutions business for the fourth quarter of 2015 was RMB3.8 million (US$0.6 million), compared to RMB69.5 million (US$10.7 million) for the corresponding period in 2014. This was mainly due to an increase in direct costs for the customer support services such as marketing activities and website design and maintenance for our customers, and personnel expenses of employees.

As of December 31, 2015, the Company had cash and cash equivalents, time deposits and restricted cash of RMB3.39 billion (US$523.6 million). Cash used in operating activities, cash from investing activities, and cash from financing activities in the fourth quarter of 2015 were RMB500.5 million (US$77.3 million), RMB141.0 million (US$21.8 million), and RMB84.5 million (US$13.0 million), respectively.

Gross billings3 in the fourth quarter of 2015 was RMB1.68 billion (US$259.8 million), compared to RMB1.30 billion (US$201.2 million) in the corresponding period in 2014.

Fiscal Year 2015 Results

Revenue in 2015 was RMB4.01 billion (US$619.3 million), including advertising and subscription revenue of RMB3.56 billion (US$548.8 million) and agent service revenue of RMB456.5 million (US$70.5 million), representing a 63.1% increase from 2014. The increase was mainly attributed to the growth of the EP platform business, the advertising business and the digital marketing solutions business.

Cost of revenue in 2015 was RMB1.23 billion (US$189.8 million), representing a year-over-year increase of 106.0% from RMB597.0 million (US$92.2 million) in 2014. Cost of revenue as a percentage of revenue in 2015 was 30.7%, compared to 24.3% in 2014. The increase was mainly due to an increase in direct costs in transaction services on the EP platform and other higher-direct-cost services.

Gross profit in 2015 was RMB2.78 billion (US$429.5 million), representing a 49.4% increase from 2014.

Selling and administrative expenses in 2015 were RMB2.99 billion (US$462.0 million), representing an increase of 154.5% from 2014. This increase was primarily attributable to the increase in headcount and related expenses, mobile marketing efforts, amortization of intangible assets relating to the strategic cooperation with JD.com as well as write-down of assets.

Product development expenses in 2015 were RMB312.1 million (US$48.2 million), a 110.8% increase from 2014. The increase was primarily due to an increase in product development headcount and related expenses.

Share-based payment expenses in 2015, which were allocated to related operating expense line items, were RMB120.0 million (US$18.5 million), compared to RMB57.1 million (US$8.8 million) in 2014. The increase was mainly due to the granting of restricted share units in 2014 and 2015.

IFRS operating loss in 2015 was RMB479.6 million (US$74.0 million), compared to an operating profit of RMB527.3 million (US$81.4 million) in 2014. This was primarily attributable to increased compensation expense resulting from an increase in both headcount and the level of salaries and benefits, marketing expense, direct costs in transaction services on the EP platform, amortization of intangible assets related to the strategic cooperation with JD.com as well as write-down of assets.

Non-GAAP operating profit in 2015 was RMB410.3 million (US$63.3 million), compared to a non-GAAP operating profit of RMB599.5 million (US$92.6 million) in 2014.

Income tax expense in 2015 was RMB64.5 million (US$10.0 million), compared to RMB97.6 million (US$15.1 million) in 2014.

IFRS loss in 2015 was RMB416.5 million (US$64.3 million), compared to an IFRS profit of RMB489.1 million (US$75.5 million) in 2014. Basic and diluted loss per ADS, each representing one ordinary share, in fiscal year 2015 amounted to RMB7.30 (US$1.13) and RMB7.30 (US$1.13), respectively.

Non-GAAP profit in 2015 was RMB367.7 million (US$56.8 million), compared to a non-GAAP profit of RMB510.9 million (US$78.9 million) in 2014. Non-GAAP basic and diluted profit per ADS in fiscal year 2015 amounted to RMB5.86 (US$0.90) and RMB5.47 (US$0.84), respectively.

Fiscal Year 2015 Business Segment Results

Revenue from the advertising business in 2015 was RMB1.62 billion (US$250.0 million), representing a 31.3% increase from 2014. The increase was attributable to better brand recognition of the bitauto.com website due to its leading position as one of the most effective auto vertical destinations in China as well as an increase in advertising spending by automaker customers.

Cost of revenue for the advertising business in 2015 was RMB321.8 million (US$49.7 million), representing a year-over-year increase of 45.5% from RMB221.2 million (US$34.1 million) in 2014. This was mainly due to an increase in higher-direct-cost services, as well as an increase in fees paid to partners' websites to distribute dealer customers' automobile pricing and promotional information. Cost of revenue as a percentage of revenue in 2015 was 19.9%, compared to 17.9% in 2014.

Gross profit from the advertising business in 2015 was RMB1.30 billion (US$200.3 million), representing a 28.2% increase from 2014.

Operating profit from the advertising business in 2015 was RMB390.0 million (US$60.2 million), representing a 18.0% increase from 2014.

Revenue from the EP platform business in 2015 was RMB1.94 billion (US$298.8 million), representing a 122.3% increase from 2014, primarily due to an increase in transaction services including automobile transactions, customer relationship management and automotive financing services, as well as an increase in the number of paying customers.

Cost of revenue for the EP platform business in 2015 was RMB672.3 million (US$103.8 million), representing a year-over-year increase of 197.9% from RMB225.7 million (US$34.8 million) in 2014. This was mainly due to an increase in direct costs in transaction services on the EP platform. Cost of revenue as a percentage of revenue in 2015 was 34.7%, compared to 25.9% in 2014.

Gross profit from the EP platform business in 2015 was RMB1.26 billion (US$195.0 million), representing a 95.8% increase from 2014.

Operating loss from the EP platform business in 2015 was RMB907.4 million (US$140.1 million), compared to an operating profit of RMB135.4 million (US$20.9 million) in 2014. This was primarily attributable to the increased investment in transaction services on the EP platform and an increase in amortization of intangible assets relating to the strategic cooperation with JD.com as well as write-down of assets.

Revenue from the digital marketing solutions business in 2015 was RMB456.5 million (US$70.5 million), representing a 28.6% increase from 2014, which was primarily due to an increase in the number of advertising customers.

Cost of revenue for the digital marketing solutions business in 2015 was RMB235.5 million (US$36.4 million), representing a year-over-year increase of 56.9% from RMB150.2 million (US$23.2 million) in 2014. The increase was mainly due to an increase in direct costs of the customer support services such as marketing activities and website design and maintenance for our customers.

Gross profit from the digital marketing solutions business in 2015 was RMB221.0 million (US$34.1 million), compared to a gross profit of RMB204.9 million (US$31.6 million) in 2014.

Operating profit from the digital marketing solutions business in 2015 was RMB37.9 million (US$5.8 million), compared to an operating profit of RMB61.4 million (US$9.5 million) in 2014. This was mainly due to an increase in direct costs of the customer support services and personnel expenses of employees.

Cash used in operating activities, cash used in investing activities such as capital expenditures, and cash from financing activities in 2015 were RMB2.15 billion (US$332.3 million), RMB1.40 billion (US$216.0 million), and RMB5.27 billion (US$813.8 million), respectively.

Gross billings in 2015 was RMB5.39 billion (US$831.8 million), compared to RMB3.45 billion (US$533.0 million) in 2014.

Bills receivables, representing short-term notes receivable issued by financial institutions that entitle the Company to receive the full face amount from the financial institutions at maturity, which generally range from three to six months from the date of issuance, was RMB147.7 million (US$22.8 million) as of December 31, 2015, compared to RMB104.7 million (US$16.2 million) as of December 31, 2014.

Trade receivables was RMB1.90 billion (US$293.3 million) as of December 31, 2015, compared to RMB1.34 billion (US$207.4 million) as of December 31, 2014. This increase was in line with gross billings growth.

The number of employees totaled 5,282 as of December 31, 2015, including employees of the entities in which Bitauto acquired and holds controlling interests. This represented an 81.6% increase from the same period in 2014, which was primarily due to higher headcount in Bitauto's customer support service teams as the Company expands its offline service infrastructure to enhance the automobile buying experience, as well as increased headcount in Bitauto's mobile product development team.

Days sales outstanding ("DSO")4 were approximately 115 days in 2015, compared to 105 days in 2014.

As of December 31, 2015, the Company had a total of 63,311,294 ordinary shares, with 34,388,244 ADSs issued and outstanding. Each ADS represents one ordinary share of the Company. Non-GAAP basic and diluted per ADS figures for the fourth quarter of 2015 were calculated using a weighted average of 60,568,015 and 62,477,303 ADSs, respectively. Non-GAAP basic and diluted per ADS figures for fiscal year 2015 were calculated using a weighted average of 58,142,432 and 60,300,058 ADSs, respectively.

Changes in Accounting Standards and Segment Reporting Disclosure

Bitauto announced that beginning from the first quarter of 2016, it will change the Company's accounting standards from International Financial Reporting Standards (IFRS) to accounting principles generally accepted in the United States of America (U.S. GAAP).

In addition, in order to better reflect Bitauto's business structure and provide more clarity regarding its operating performance, beginning from the first quarter of 2016 the Company will report financial results across three business segments: advertising and subscription business, transaction services business and digital marketing solutions business.

First Quarter 2016 Outlook 

Bitauto currently expects to generate revenue in the range of RMB1.05 billion (US$162.4 million) to RMB1.09 billion (US$167.8 million) in the first quarter of 2016. Bitauto currently expects non-GAAP profit attributable to ordinary shareholders of the parent to be in the range of RMB58.0 million (US$9.0 million) to RMB68.0 million (US$10.5 million) in the first quarter of 2016.

This forecast takes into consideration seasonality factors in Bitauto's business, and excludes any impact of foreign currency fluctuation. It reflects management's current and preliminary view, which is subject to change.

Conference Call Information

Bitauto's management will hold an earnings conference call on March 8, 2016, at 7:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

US:                           

+1-845-675-0437 or +1-866-519-4004

Hong Kong:              

+852 3018-6771 or 800-906-601

China:                       

800-8190-121 or 400-6208-038

International:      

+65-6713-5090      



Conference ID:       

37750415

A replay of the conference call may be accessed by phone at the following number until March 17, 2016:

US:                           

+1-855-452-5696 or +1-646-254-3697

International:    

+61-2-8199-0299    



Conference ID:       

37750415

Additionally, a live and archived webcast of this conference call will be available at http://ir.bitauto.com.

1 This announcement contains translations of certain amounts in Renminbi into U.S. dollars at specified rates solely for the convenience of the readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB6.4778 to US$1.00, the effective noon buying rate as of December 31, 2015 in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York.

2 The agent service revenue is primarily derived from fees received for assisting customers in placing advertisements, organizing promotional activities to promote their products, and from performance–based rebates from the media vendors.

3 For the advertising agent services the Company provides, the Company acts as an agent in placing advertisements on the websites of the media vendors on behalf of the automaker customers. The Company receives fees in the capacity of an agent for assisting automaker customers in placing advertisements on media vendors' websites, and therefore, records the fees on a net basis in its consolidated financial statements. The net fees recognized from each such transaction amount to a relatively small percentage of the related trade receivables or payables recorded on a gross basis. For the advertising services the Company provides, the Company acts as the principal in the arrangement and records revenues on a gross basis in its consolidated financial statements. Revenues are recognized only after the amount has been contractually agreed with the customers, the advertisements have been published and when the collectability is reasonably assured. For both the advertising agent services and advertising services provided, the Company enters into publishing schedule agreements with its automaker and automobile dealer customers, and related advertising agreements with the media vendors who are then obligated to place the advertisements according to the Company's customers' publishing schedule agreements. At such time, the Company records receivables from the customers and, in the same amount, corresponding payables due to the media vendors on a gross basis. Such payments are conducted through the Company. Gross billings include the gross value of advertisements placed by the Company's customers that correspond to the gross payables recorded due to the media vendors.

4 The Company's annual DSO is defined as average trade receivables divided by gross billings, multiplied by 365 days.

About Bitauto Holdings Limited 

Bitauto Holdings Limited (NYSE: BITA) is a leading provider of internet content and marketing services for China's fast-growing automotive industry. Bitauto manages its businesses in three segments: its advertising business, EP platform business, and digital marketing solutions business. 

Bitauto's advertising business offers a variety of advertising services mainly to automakers through its bitauto.com and taoche.com websites, which provide consumers with up-to-date automobile pricing and promotional information, specifications, reviews and consumer feedback. Bitauto's EP platform business provides web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The platform enables dealer customers to create their own online showrooms, list pricing and promotional information, provide dealer contact information, place advertisements and manage customer relationships to help them reach a broad set of purchase-minded customers and effectively market their automobiles to consumers online. In 2014, the platform began providing automobile customers with additional transaction services, including automobile transaction, customer relationship management and automotive financing services, which are intended to optimize the automobile purchase experience and facilitate completion of transactions. Bitauto's digital marketing solutions business provides automakers with one-stop digital marketing solutions, including website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

For more information, please visit ir.bitauto.com.

Safe Harbor Statement 

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for first quarter of 2016 and the quotations from management in this announcement, as well as Bitauto's strategic and operational plans, contain forward-looking statements. Bitauto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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. Statements that are not historical facts, including statements about Bitauto's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the automobile industry and the internet marketing industry in China; our expectations regarding demand for and market acceptance of our services and service delivery model; our expectations regarding enhancing our brand recognition; our expectations regarding keeping and strengthening our relationships with major customers, partner websites and media vendors; relevant government policies and regulations relating to our businesses, automobile purchases and ownership in China; our ability to attract and retain quality employees; our ability to stay abreast of market trends and technological advances; competition in our industry in China and internationally; general economic and business conditions in China; and our ability to effectively protect our intellectual property rights and not infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Bitauto's filings with the Securities and Exchange Commission, including its annual report on Form 20-F. Bitauto does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Bitauto undertakes no duty to update such information, except as required under applicable law.

Use of Non-GAAP Financial Measures 

Bitauto's management supplements the data it receives regarding IFRS profit with non-GAAP profit, which excludes from IFRS profit the charges relating to (i) share-based payments; (ii) amortization of intangible assets resulting from asset and business acquisitions; (iii) fair value adjustment of contingent considerations; (iv) changes in fair value of financial instruments; (v) gain from deemed disposal of equity investments; (vi) gain from step acquisition arising from revaluation of previously held equity interest; and (vii) share of amortization of equity investments' intangible assets not on their books; and (viii) assets write-down. This non-GAAP financial measure provides Bitauto's management with the ability to assess its operating results without considering the impact of non-cash charges resulting from share-based payments. Furthermore, this non-GAAP financial measure eliminates the impact of item(s) that Bitauto does not consider indicative of the performance of its business.

The use of non-GAAP profit has certain limitations. Share-based payments have been and will continue to be incurred and are not reflected in the presentation of the non-GAAP profit. This non-GAAP financial measure should be considered in addition to results prepared in accordance with IFRS, and should not be considered a substitute for or superior to IFRS results. In addition, non-GAAP profit may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as Bitauto does.

Reconciliation of this non-GAAP financial measure to the most directly comparable IFRS financial measure is set forth at the end of this release.

For investor and media inquiries, please contact:

China

IR Department
Bitauto Holdings Limited
Tel: +86-10-6849-2145
ir@bitauto.com

SELECTED CONSOLIDATED FINANCIAL DATA

Consolidated statements of comprehensive income data



For the Three Months Ended



December 31,
2014


December 31,
2015



RMB


RMB



Unaudited


Unaudited











Revenue 


975,215,055


1,239,348,186

Cost of revenue


(307,703,280)


(336,580,712)

Gross profit


667,511,775


902,767,474






Selling and administrative expenses


(421,553,927)


(1,172,192,359)

Product development expenses


(50,832,074)


(88,793,642)

Other losses, net


(900,703)


(5,912,444)

Operating profit/(loss)


194,225,071


(364,130,971)






Interest income


2,929,591


5,217,774

Interest expense


(5,493,530)


(2,980,760)

Changes in fair value of financial instruments


-


(2,520,748)

Share of losses of associates and joint ventures


(3,182,738)


(9,792,803)

Gain from deemed disposal of equity investments


-


49,758,106

Gain from the adjustment of contingent consideration


-


17,419,234

Profit/(loss) before tax


188,478,394


(307,030,168)






Income tax expense


(38,476,266)


(7,290,036)

Profit/(loss) for the period


150,002,128


(314,320,204)

Total comprehensive income/(loss) for the period


153,093,254


(228,543,845)






Profit/(loss) for the period attributable to:





 Ordinary shareholders of the parent


148,205,456


(320,973,055)











Total comprehensive income/(loss) for the period attributable to:





 Ordinary shareholders of the parent


151,296,582


(235,196,696)











Other financial data (unaudited)





Non-GAAP profit for the period


197,426,394


112,209,294





















Reconciliation of IFRS profit/(loss) to non-GAAP profit












For the Three Months Ended



December 31,
2014


December 31,
2015



RMB


RMB



Unaudited


Unaudited






Profit/(loss) for the period


150,002,128


(314,320,204)

Share-based payments


33,970,980


27,587,826

Amortization of intangible assets resulting from asset and business
acquisitions


11,219,807


164,671,592

Fair value adjustment of contingent considerations


2,001,429


888,622

Changes in fair value of financial instruments


-


2,520,748

Gain from deemed disposal of equity investments


-


(49,758,106)

Share of amortization of equity investments'
intangible assets not on their books


232,050


27,606

Assets write-down


-


280,591,210

Non-GAAP profit for the period


197,426,394


112,209,294

 

 

SELECTED CONSOLIDATED FINANCIAL DATA

Consolidated statements of comprehensive income data



For the Year Ended



December 31,
2014


December 31,
2015



RMB


RMB



Audited


Unaudited











Revenue 


2,458,938,024


4,011,553,742

Cost of revenue


(597,010,464)


(1,229,622,979)

Gross profit


1,861,927,560


2,781,930,763






Selling and administrative expenses


(1,175,686,612)


(2,992,475,829)

Product development expenses


(148,078,746)


(312,099,631)

Other (losses)/gains, net


(10,904,146)


43,088,556

Operating profit/(loss)


527,258,056


(479,556,141)






Interest income


13,606,952


24,980,457

Interest expense


(6,339,436)


(8,140,243)

Changes in fair value of financial instruments


-


(31,617,868)

Share of losses of associates and joint ventures


(1,341,336)


(16,215,835)

Gain from deemed disposal of equity investments


-


141,194,852

Gain from step acquisition arising from revaluation of previously held
equity interest


53,581,440


-

Gain from the adjustment of contingent consideration


-


17,419,234

Profit/(loss) before tax


586,765,676


(351,935,544)






Income tax expense


(97,643,152)


(64,517,403)

Profit/(loss) for the period


489,122,524


(416,452,947)

Total comprehensive income/(loss) for the period


498,262,161


(37,574,197)






Profit/(loss) for the period attributable to:





 Ordinary shareholders of the parent


485,190,724


(424,351,291)











Total comprehensive income/(loss) for the period attributable to:





 Ordinary shareholders of the parent


494,330,361


(45,472,541)











Other financial data (unaudited)





Non-GAAP profit for the period


510,869,854


367,672,736





















Reconciliation of IFRS profit/(loss) to non-GAAP profit












For the Year Ended



December 31,
2014


December 31,
2015



RMB


RMB



Unaudited


Unaudited






Profit/(loss) for the period


489,122,524


(416,452,947)

Share-based payments


57,103,866


120,044,603

Amortization of intangible assets resulting from asset and business
acquisitions


15,171,311


489,233,053

Fair value adjustment of contingent considerations


2,655,527


3,554,503

Changes in fair value of financial instruments


-


31,617,868

Gain from deemed disposal of equity investments


-


(141,194,852)

Gain from step acquisition arising from revaluation of previously held
equity interest


(53,581,440)


-

Share of amortization of equity investments'
intangible assets not on their books


398,066


279,298

Assets write-down


-


280,591,210

Non-GAAP profit for the period


510,869,854


367,672,736

 

Operating segment information



For the Three Months Ended



December
31, 2014

% of
Revenue

December
31, 2015

% of
Revenue

% Change


RMB000s


RMB000s




Unaudited


Unaudited



Advertising business






- Revenue

448,944


455,182


1.4%

- Gross profit

339,067

75.5%

371,926

81.7%

9.7%

- Operating profit

112,472

25.1%

134,617

29.6%

19.7%

- Non-GAAP operating profit

128,100

28.5%

144,742

31.8%

13.0%







EP platform business






- Revenue

339,654


604,531


78.0%

- Gross profit

197,919

58.3%

437,507

72.4%

121.1%

- Operating profit/(loss)

12,209

3.6%

(502,530)

(83.1%)

(4,216.1%)

- Non-GAAP operating profit/(loss)

35,285

10.4%

(43,804)

(7.2%)

(224.1%)







Digital marketing solutions business






- Revenue

186,617


179,635


(3.7%)

- Gross profit

130,526

69.9%

93,334

52.0%

(28.5%)

- Operating profit

69,543

37.3%

3,782

2.1%

(94.6%)

- Non-GAAP operating profit

76,031

40.7%

7,782

4.3%

(89.8%)

 

 

Operating segment information



For the Year Ended



December
31, 2014

% of
Revenue

December
31, 2015

% of
Revenue

% Change


RMB000s


RMB000s




Unaudited


Unaudited



Advertising business






- Revenue

1,233,190


1,619,463


31.3%

- Gross profit

1,011,997

82.1%

1,297,630

80.1%

28.2%

- Operating profit

330,470

26.8%

389,990

24.1%

18.0%

- Non-GAAP operating profit

358,249

29.1%

439,464

27.1%

22.7%







EP platform business






- Revenue

870,713


1,935,559


122.3%

- Gross profit

645,056

74.1%

1,263,307

65.3%

95.8%

- Operating profit/(loss)

135,361

15.5%

(907,437)

(46.9%)

(770.4%)

- Non-GAAP operating profit/(loss)

170,717

19.6%

(80,949)

(4.2%)

(147.4%)







Digital marketing solutions business






- Revenue

355,035


456,532


28.6%

- Gross profit

204,874

57.7%

220,994

48.4%

7.9%

- Operating profit

61,427

17.3%

37,891

8.3%

(38.3%)

- Non-GAAP operating profit

70,568

19.9%

51,799

11.3%

(26.6%)

 

 

SELECTED CONSOLIDATED FINANCIAL DATA

Consolidated statements of financial position data








December 31, 2014


December 31, 2015



RMB


RMB



Audited


Unaudited






Assets





  Trade receivables


1,343,373,607


1,899,789,400

  Bills receivables


104,716,846


147,660,156

  Restricted cash


-


350,654,400

  Time deposits


61,190,000


100,000,000

  Cash and cash equivalents


1,221,472,624


2,940,874,390

  Other current assets


186,260,356


2,446,069,562

  Non-current assets


758,293,805


5,204,405,266

  Total assets


3,675,307,238


13,089,453,174






Liabilities





  Trade payables


589,152,700


987,424,361

  Other current liabilities


838,380,130


1,673,076,583

  Non-current liabilities


86,859,499


1,813,708,760

  Total liabilities


1,514,392,329


4,474,209,704

Total equity


2,160,914,909


8,615,243,470

Total liabilities and equity


3,675,307,238


13,089,453,174

 

SOURCE Bitauto Holdings Limited



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