On January 20, luxury car dealer BetterLife Holding Limited (BetterLife Holding Limited, hereinafter referred to as "BetterLife Holding") submitted a listing application to the Hong Kong Stock Exchange and disclosed the prospectus.
It is understood that the main domestic entity of Baideli Holdings is Beijing Baideli Automobile Import and Export Group Co., Ltd., which was established in 1998 with a registered capital of 60 million yuan and the legal representative is Zhou Xiaobo. At the same time, Zhou Xiaobo is also the chairman of Baideli Group and Baideli Holdings.
According to the prospectus, Baideli Holdings operates 12 Porsche, Audi, Mercedes-Benz, Bentley, Volvo and Jaguar-Land Rover 4S dealerships in six provinces and cities in China, including Beijing, Tianjin, Shandong and Sichuan. , Zhejiang and Guangdong.
In 2018 and 2019, Baideli Holdings' operating income was 8.409 billion yuan and 8.179 billion yuan, and net profits were 270 million yuan and 225 million yuan respectively. In the first nine months of 2020 (first three quarters), its revenue was 5.789 billion yuan, compared with 5.903 billion yuan in the same period in 2019; net profit was 218 million yuan, compared with 217 million yuan in the same period in 2019.
From this point of view, Baideli Holdings' operating performance has declined since 2019. Among them, revenue in 2019 decreased by about 2.7% compared with 2018, and net profit decreased by about 16.7%. In 2020, Baideli Holdings' revenue will also decrease, and its net profit will be basically the same as that of the same period in 2019.
Regarding the decline in revenue in 2019, Baideli Holdings stated that it was mainly due to the conversion of vehicle models in order to comply with the new regulations of "Light-Duty Vehicle Pollutant Emission Limits and Measurement Methods (China Phase VI)" (ie National VI). Due to decreased sales.
According to the Frost & Sullivan Report, Baideli Holdings is the second largest luxury and ultra-luxury car dealership group in the Beijing-Tianjin-Hebei region in terms of revenue in 2019, and among all the ultra-luxury brand car dealership service providers in China Ranked sixth.
Based on the average revenue per store in 2019, Baideli Holdings ranked first compared with the top ten enterprise groups mainly engaged in the business of ultra-luxury brand 4S dealership stores in China. Baideli Holdings stated that it can provide a full range of auto-related products and services (sales, after-sales, and value-added services including financial leasing and second-hand cars).
According to the prospectus, Baideli Holdings' revenue is mainly composed of automobile sales and after-sales service. In 2018, 2019 and the first three quarters of 2020, its revenue from auto sales was 7.347 billion yuan, 7.069 billion yuan, and 5.042 billion yuan, accounting for 87.4%, 86.4%, and 87.1%, respectively.
During the reporting period, Baideli Holdings' revenues through after-sales service were 1.062 billion yuan, 1.109 billion yuan, and 5.788 billion yuan. Among them, repair and maintenance are the main components of after-sales service. During the reporting period, they contributed 7.995 billion yuan, 8.762 billion yuan, and 5.698 billion yuan respectively.
Taken together, Baideli Holdings has a gross profit margin of 9.9% and a net profit margin of 3.8%. Among them, the gross profit margin of automobile sales is the lowest, about 4%. The gross profit margin of after-sales service for license plate registration services, repairs and maintenance is around 50%.
Baideli Holdings disclosed in its prospectus that its inventories during the reporting period accounted for approximately 42.8%, 37.5% and 28.1% of the total current assets. During the same period, the average inventory turnover days were approximately 37.6 days, 36.9 days, and 28.9 days.
In terms of equity, before the IPO, the Zhou Family Trust represented by Zhou Xiaobo held 100% of Baideli Holdings' shares through Red Dynasty and was a wholly-owned shareholder of the company. After the IPO is completed, Zhou Xiaobo is still the actual controller of Baideli Holdings.
According to the prospectus, Zhou Xiaobo is the executive director, chairman and CEO of Baideli Holdings, responsible for the overall strategy and operation of the group. At the same time, its management also includes executive director and chief financial officer Zou Guoqiang, executive directors Sun Jing and Wei Hongjing, as well as sales president Xu Tao and after-sales president Luo Chao.
Among them, Zhou Xiaobo's nationality is Germany. Baideli Holdings stated that Zhou Xiaobo is subject to relevant restrictions as a foreign investor. He has entered into arrangements with relatives and friends to serve as the relevant registered shareholders, which represents Zhou Xiaobo's holding of equity in these companies.