eHi Car Services, a leading car rentals and car services provider in China, announced its net revenues increased by 69.4% year-over-year to RMB339.9 million (US$54.8 million) for the second quarter of 2015 from RMB200.6 million for the second quarter of 2014 in its unaudited financial results for the Q2 ended June 30, 2015.
Second Quarter 2015 Highlights
Three months ended June 30, | Year-Over-Year | ||||
(RMB '000) | 2014 | 2015 | Comparison | ||
Car rentals | 137,228 | 251,982 | 83.6% | ||
Car services | 63,394 | 87,889 | 38.6% | ||
Total Net Revenues | 200,622 | 339,871 | 69.4% | ||
· Net income for the second quarter of 2015 was RMB699.1 million (US$112.8 million), compared with a net loss of RMB2.8 million for the second quarter of 2014. Net income for the second quarter of 2015 included RMB803.1 million (US$129.5 million) in gains from sale of cost method investment.
· Total period-end fleet size increased by 98.1% year-over-year to 30,530 vehicles as of June 30, 2015 from 15,409 vehicles as of June 30, 2014.
· Average available fleet size increased by 63.5% year-over-year to 24,175 vehicles for the second quarter of 2015 from 14,785 vehicles for the second quarter of 2014.
· Total fleet RevPAC increased to RMB155 for the second quarter of 2015 from RMB149 for the second quarter of 2014.
· Fleet utilization rate for car rentals was 71.7% for the second quarter of 2015, compared with 70.0% for the second quarter of 2014.
Mr. Ray Zhang, eHi's Chairman and Chief Executive Officer, said, "Our car rentals and car services businesses continued to thrive during the second quarter as we executed on our strategic initiatives to further penetrate the market and expand our fleet size, while maintaining industry-benchmark operating efficiency. We will continue to build on our strong foundation as there are many exciting growth opportunities ahead of us. With the support from our equity financing, sales of investments and credit facility from China Development Bank in the second quarter of 2015, we have the resources to further expand our network and fleet size, and fulfill our future business development needs. "
Mr. Colin Sung, eHi's Chief Financial Officer, said, "During the second quarter, we continued to drive significant revenue growth by expanding fleet size both in car rentals and car services, while leveraging our services network. Second quarter revenues increased by 69.4% year-over-year with growth from each of our business segments. We are also exploring investment opportunities in our related industries."
Recent Developments
On June 24, 2015,. eHi transferred 100% equity interest in its wholly owned subsidiary Elite Plus Developments Limited to Eagle Legend Global Limited, an independent third party, for gross proceeds of US$160.9 million. Elite Plus currently holds a stake in Xiaoju Kuaizhi Inc., which eHi invested in April 2014 at a consideration of approximately US$25 million. The net proceeds received from this transaction will be used to further expand eHi's car rental and car services fleets and to fund eHi's operations across China.
On June 30, 2015, eHi held an extraordinary general meeting of shareholders in Shanghai and announced that eHi's shareholders approved the issuance of 10,900,000 Class A common shares to Tiger Global Mauritius Fund, SRS Partners I Mauritius Limited and SRS Partners II Mauritius Limited.
On July 20, 2015, the Company announced that it entered into a five-year framework agreement with China Development Bank Shanghai Branch that will include various financing products for an aggregate amount of RMB1.5 billion. The agreement also allows eHi and China Development Bank Shanghai Branch to establish an innovative strategic cooperation in various areas, including vehicle fixed-asset investment.
Outlook
eHi estimates that its fiscal year 2015 net revenues will be in the range of RMB1.5 billion to RMB1.6 billion, which would represent an increase of approximately 76% to 88% from RMB851.2 million in 2014. Total period-end fleet size as of December 31, 2015 will be in the range of 37,000 to 40,000 vehicles, which would represent an increase of approximately 87% to 103% from 19,746 vehicles as of December 31, 2014. This forecast reflects the Company's current and preliminary view, which is subject to change.
Original press release
