China Zenix Auto International Limited Reports First Quarter 2021 Financial Results
ZHANGZHOU, China, May 26, 2021 /PRNewswire/ -- China Zenix Auto International Limited (OTC: ZXAIY) ("Zenix Auto" or the "Company"), one of the largest commercial vehicle wheel manufacturers in China in both the aftermarket and OEM market by sales volume, announced today its unaudited financial results for the first quarter ended March 31, 2021.
Financial Highlights
First Quarter 2021:
- Revenue grew
23.8% year-over-year to RMB397.3 million (US$60.6 million ); - Total unit sales in the OEM market increased by
79.1% year-over-year as a result of a significant increase in the Company's wheel sales during the first quarter of 2021, especially in the heavy- and medium-duty categories; - Net loss and total comprehensive loss for the first quarter of 2021 was RMB128.4 million (US
$19.6 million ); - As of March 31, 2021, Zenix Auto had bank balances and cash of RMB528.2 million (US
$80.6 million ) and fixed bank deposits with a maturity period over three months of RMB210.0 million (US$32.1 million ), which were equivalent to RMB14.3 (US$2.18 ) in cash and fixed bank deposits per American Depositary Share ("ADS"); - Total equity attributable to owners of the Company was RMB1,906.3 million (US
$291.0 million ) as of March 31, 2021.
Mr. Junqiu Gao, Deputy CEO and Chief Sales and Marketing Officer of Zenix Auto, commented, "In the first quarter of 2021, our results reflect key drivers of the automotive industry in China and the lingering effects of COVID-19 in international markets."
"According to the China Association of Automobile Manufacturers, commercial vehicle sales in China rose by
"Our strong OEM sales in the first quarter of 2021 partially mitigated the continuing weakness in international markets and the Chinese aftermarket segment. There was lower international demand reflecting the impact of COVID-19. Many economies are still struggling and there is a preference for lower-priced wheels in price sensitive markets. Chinese aftermarket sales declined due to ongoing anti-overloading campaign creating demand for new vehicles as well as the mandate for newer and more environmental-friendly vehicles."
"We are well positioned in each of our markets and supply our industry-leading portfolio of advanced wheels to a large number of domestic OEMs. We have increased our research and development investment to further develop wheel materials and designs to improve performance and quality while taking steps to reduce unit costs concurrently."
Mr. Martin Cheung, CFO of Zenix Auto, commented, "We had bank balances of RMB528.2 million (US
2021 First Quarter Results
Revenue for the first quarter ended March 31, 2021 increased by
Aftermarket sales in China were RMB92.5 million (US
Sales to the Chinese OEM market were RMB279.9 million (US
International sales were RMB24.9 million (US
In the first quarter of 2021, domestic aftermarket sales, domestic OEM sales and international sales contributed
Sales of tubed steel wheels accounted for
Gross loss was RMB61.8 million (US
Selling and distribution expenses were RMB34.6 million (US
Research and development ("R&D") expenses were RMB18.4 million (US
Administrative expenses were RMB37.7 million (US
Net loss and total comprehensive loss for the first quarter of 2021 was RMB128.4 million (US
Basic and diluted loss per ADS in the first quarter of 2021 was RMB2.49 (US
During the first quarters of 2021 and 2020, the weighted average number of ordinary shares was 206.5 million and the weighted average number of ADSs was 51.6 million.
As of March 31, 2021, Zenix Auto had bank balances and cash of RMB528.2 million (US
For the first quarter ended March 31, 2021, the Company recorded cash outflows from operating activities of RMB158.7 million (US
Conference Call Information
The Company will host a conference call, to be simultaneously webcast, on Wednesday, May 26, 2021 at 8:00 a.m. ET/ 8:00 p.m. Beijing Time. Interested parties may participate in the conference call by dialing +1-877-407-0782 (U.S. Toll Free) or +1-201-689-8567 (International). Please dial in five minutes before the call starting time and ask to be connected to the "China Zenix Auto" conference call.
A replay will be available shortly after the conclusion of the conference call through June 26, 2021, at 8:00 a.m. ET. Interested parties may access the replay by dialing +1-877-481-4010 (U.S. Toll Free) or +1-919-882-2331 (International) and using Conference ID 41345 to access the replay.
Exchange Rate Information
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. All translations from RMB to U.S. dollars are made at a rate of RMB6.5518 to US
About China Zenix Auto International Limited
China Zenix Auto International Limited is one of the largest commercial vehicle wheel manufacturers in China in both the aftermarket and OEM market by sales volume. The Company offers more than 883 series of aluminum wheels, tubed steel wheels, tubeless steel wheels, and off-road steel wheels in the aftermarket and OEM markets in China and internationally. The Company's products are primarily sold to large PRC commercial vehicle manufacturers and exported to over 54 distributors in more than 24 countries worldwide. With six large, strategically located manufacturing facilities in multiple regions across China, the Company has a designed annual production capacity of approximately 15.5 million units of steel and aluminum wheels as of March 31, 2021. For more information, please visit: www.zenixauto.com/en.
Safe Harbor
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. The Company may make written or oral forward-looking statements in its periodic reports 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. Statements that are not historical facts, including statements about the Company'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. Further information regarding these risks is included in our filings with the SEC. The consequences of the coronavirus outbreak to economic conditions and the automobile industry in general, and the financial position and operating results of the Company in particular, have been material in 2020, are changing rapidly, and cannot be predicted. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.
For more information, please contact
Kevin Theiss
Awaken Advisors
Tel: +1-(212) 521-4050
Email: Kevin@awakenlab.com
- tables follow -
China Zenix Auto International Limited Unaudited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income For the three months ended March 31, 2021 and 2020 (RMB and US$ amounts expressed in thousands, except number of shares and per share data)
| |||||||
Three Months Ended March 31, | |||||||
2020 | 2021 | 2021 | |||||
RMB' 000 | RMB' 000 | US$' 000 | |||||
Revenue | 320,783 | 397,280 | 60,637 | ||||
Cost of sales | (322,874) | (459,097) | (70,072) | ||||
Gross loss | (2,091) | (61,817) | (9,435) | ||||
Other operating income | 3,059 | 3,212 | 490 | ||||
Net exchange gain (loss) | 72 | (15) | (2) | ||||
Selling and distribution costs | (25,565) | (34,633) | (5,286) | ||||
Research and development expenses | (11,855) | (18,402) | (2,809) | ||||
Administrative expenses | (31,217) | (37,659) | (5,748) | ||||
Finance costs | (5,985) | (5,707) | (871) | ||||
Loss before taxation | (73,582) | (155,021) | (23,661) | ||||
Income tax credit | 13,018 | 26,575 | 4,056 | ||||
Loss and total comprehensive loss for the period |
(60,564) |
(128,446) | (19,605) | ||||
Loss per share | |||||||
Basic | (0.29) | (0.62) | (0.09) | ||||
Diluted | (0.29) | (0.62) | (0.09) | ||||
Loss per ADS | |||||||
Basic | (1.17) | (2.49) | (0.38) | ||||
Diluted | (1.17) | (2.49) | (0.38) | ||||
Shares | 206,500,000 | 206,500,000 | 206,500,000 | ||||
ADSs | 51,625,000 | 51,625,000 | 51,625,000 | ||||
China Zenix Auto International Limited Unaudited Condensed Consolidated Statements of Financial Position (RMB and US$ amounts expressed in thousands)
| ||||||
December 31, | March 31, | March 31, | ||||
RMB'000 | RMB'000 | US$' 000 | ||||
ASSETS | ||||||
Current Assets | ||||||
Inventories | 90,351 | 170,735 |
| |||
