CAR Inc.

CAR Inc.
神州租車有限公司
CAR INC. REPORTS FIRST QUARTER 2015 UNAUDITED
FINANCIAL RESULTS
HONG KONG, May 19, 2015 – CAR Inc. (“CAR” or the “Company”, stock code: 699) is pleased to
announce the unaudited consolidated results of the Company and its subsidiaries (the “Group”) for the three
months ended March 31, 2015.
First Quarter Financial Highlights:


Rental revenue was RMB926 million, a 37% increase over the corresponding period of last year
Adjusted EBITDA1 was RMB577 million, a 51% increase over the corresponding period of last
year

Adjusted EBITDA margin2 was 62.4%, compared with 56.7% in the first quarter of 2014

Adjusted net profit1 was RMB210 million, a 59% increase over the corresponding period of last
year


Adjust net profit margin2 was 23%, compared with 20% in the first quarter of 2014
Basic earnings per share was RMB0.075
First Quarter Operational Highlights:

Total fleet size was 72,994 vehicles as of March 31, 2015, compared with 63,552 vehicles as of
December 31, 2014. The operating fleet size was 69,067 vehicles as of March 31, 2015, compared
with 58,773 vehicles as of December 31, 2014.

The Group disposed of 1,581 used vehicles during the first quarter of 2015. Gross margin from
used vehicle sales in the first quarter of 2015 was 4.3%, continue demonstrating the ability of
managing the full cycle of rental business.

The Group’s short-term rental business continued to perform strongly in the first quarter of 2015.
RevPAC increased to RMB175 in the first quarter of 2015, compared with RMB160 in the prior
3
quarter and 171 in the corresponding period of last year. Average daily rental rate (“ADRR”)
continued to remain relatively stable at RM275 in the first quarter of 2015, compared with
RMB260 in the prior quarter and 281 in the corresponding period of last year. The fleet utilization
3
rate increased to 63.7% in the first quarter of 2015, while still maintaining a deliberate balance to
secure more license plates.

The UCAR Collaboration in January 2015 helped to accelerate growth and bring benefits to the
Group by increasing revenue and profit margin, improving fleet efficiency and allowing the Group
to secure more license plate resources. As at 31 March, 2015, a total of 9,031 rental vehicles were
rented to UCAR under long-term rental terms. The Group has also seen strong synergies between
short-term self drive and UCAR chauffeured service by renting short-term rental fleet to UCAR
during weekdays.
1. Adjusted net profit and Adjusted EBITDA are non-IFRS measures. Please refer to section VI. Non-IFRS financial reconciliation in the
2015 First Quarter Results Announcement of CAR Inc. posted on May 19, 2015 for details.
2. These margins are presented as a percentage of rental revenue.
3. These terms have the same definitions as disclosed in the prospectus dated September 8, 2014 in connection with the Company’s IPO
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CAR Inc.
神州租車有限公司
Mr. Charles Lu, the CEO of CAR, said, “I am pleased to see that our business continued to deliver solid
results in the first quarter. During the quarter, we continued to strengthen and extend our leadership in
China’s short term rental business, enhance our customer experience with O2O innovation, and improve our
profitability. As an important part of our auto mobility solutions and smart travel ecosystem, our business
collaboration with UCAR has developed significantly and become an important driver to our growth.
The
collaboration has brought the Company a large volume of committed long term revenues, extensive business
synergies, license plate resources and increasing fleet efficiency and profit margin.
Since January 2015,
UCAR has expanded its market presence nationwide very quickly and continued to increase its penetration,
making it one of the major mobile applications in providing car chauffeured services in China.
In view of
UCAR’s successful development, we are in the process of evaluating the opportunity to invest in UCAR in its
next round of equity financing. Looking forward, we will remain committed to our vision of further building
China’s leading auto mobility platform and smart travel ecosystem by providing Chinese consumers
high-quality auto related services at competitive prices with an advanced technology platform.”
Mr. Wilson Li, the CFO of CAR, added, “We delivered another quarter with strong and consistent financial
and operational performance, which was mainly driven by our short-term rental business and the launch of
the UCAR chauffeured car service. Our profit margin continued to expand due to further optimized business
mix, operational leverage, and increasing operating efficiency. We also continued to demonstrate our ability
to effectively dispose of used vehicles at prices close to their estimated residual values. Over the past quarter,
we have also been strengthening our financial position by enhancing cash flow and diversifying funding
sources. We have achieved BB+ international credit rating from all 3 rating agencies and successfully issued
US$500 million public senior notes with 5 year tenor. Our total cash increased from RMB2,475.5 million as
at the end of last year to RMB4,206.0 by the end of the first quarter. We believe that our dominant market
position and strong profitability, combined with our strong financial position, will enable us further grow in
our long-term pursuit of excellence.”
About CAR Inc. (http://ir.zuche.com)
CAR Inc. (699.HK) is a leading car rental company in China, offering comprehensive services such as
short-term rentals, long-term rentals and leasing. CAR Inc’s best-in-class service has made it the most
recognized and trusted brand in China. Car Inc’s innovation-driven business model, combined with effective
strategies and extensive understanding of the market, enable it to promptly provide mobility solutions,
enhance the customer experience, and capture opportunities brought by increasing mobile and O2O demand.
CAR Inc’s mission is to enhance the quality of daily life through innovation as it builds China’s leading auto
mobility platform and smart travel ecosystem. Car Inc. will continue to explore new and innovative business
models and remains committed to providing high-quality auto-related services.
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For further enquiries, please contact
CAR Inc.
Email:
Christensen China Limited
ir@zuche.com
Tel:
Fax:
Email:
2
852-2117 0861
852-2117 0869
CAR@christensenir.com