SMM News: may 30, change car holding Co., Ltd. released 2019 first quarter results. Revenue in the first quarter of fiscal year 2019 was 2.735 billion yuan, up 26.0 percent from a year earlier; gross profit was 1.669 billion yuan, up 23.6 percent from a year earlier; and net profit was 92.8 million yuan, compared with a net loss of 288 million yuan in the same period last year. Excluding Non-GAAP, net profit in the first quarter of 2019 was $285 million, up from $37.1 million in the same period last year.
In 2018, retail sales of new passenger cars in China registered negative growth for the first time. After the cold winter, the car market did not get off to a good start in the first quarter of 2019. According to the China Association of Automobile Industries and the China Automobile Circulation Association, new car sales in China fell 14% in the first quarter of 2019 compared with the same period last year, while used car sales increased by only 2% compared with the same period last year.
In this context, as the main operator of the car exchange service, the revenue of Yixin Group reached 1.66 billion yuan in the first quarter of 2019, an increase of 35% over the same period last year, and the gross profit increased by 41% over the same period last year to 843 million yuan. Adjusted net profit reached 233 million yuan in the current quarter, compared with a loss of 62.3 million yuan in the same period last year. Net profit under the General Accounting Standards of the United States reached 104 million yuan this quarter, compared with a loss of more than 200 million yuan in the same period last year.
In response, Xu Ming, chief financial officer of Yiche Holdings, said: "the profit of Yiche has improved in the first quarter, mainly due to the improvement of Yixin's profitability and the effective control of sales and marketing expenses."
In terms of trading volume, the trading volume of Yixin Auto Finance reached 147000 units in the first quarter, an increase of 30 per cent over the same period last year. Among them, the financial trading volume of new cars increased by 23% compared with the same period last year, and the financial trading volume of used cars achieved a year-on-year growth rate of 39%, surpassing the overall car market.
The reporter noted that Yixin's profitability has greatly improved, mainly due to the growth of loan assistance and self-financing leasing business, as well as the company's ability to control the quality of assets. Yi Xin's outstanding loan assistance business, which has been relaunched since 2018, continued to grow steadily in the first quarter of this year. In the first quarter, Yi Xin's loan assistance business facilitated about 97000 auto financial transactions for cooperative banks, an increase of nearly 10 times over the same period last year, accounting for about 66 per cent of the total trading volume in the first quarter.
It is worth mentioning that, in terms of asset quality and risk control, as at 31 March 2019, The overdue rate of more than 90 days (including more than 180 days) and the overdue rate of more than 180 days in all businesses, including loan assistance and proprietary financing, were 0.9% and 0.43%, respectively. Overall asset quality remained stable compared with 0.92 per cent and 0.42 per cent at the end of 2018.