CAR Inc. Announces Unaudited Interim Consolidated Results for the Six Months Ended 30 June, 2015

HONG KONG, Aug. 20, 2015 /PRNewswire/ -- CAR Inc. ("CAR" or the "Company", stock code: 0699) is pleased to announce the unaudited interim consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June, 2015.

Financial Highlights:
Six months ended 30 June, 2015

• Rental revenue was RMB1,983 million, an increase of 44% year-over-year.
• Gross profit was RMB974 million, an increase of 68% year-over-year. Gross margin was 49%, compared with 42% in the same period of 2014.
• Adjusted EBITDA [1] was RMB1,258 million, an increase of 58% year-over-year. Adjusted EBITDA margin[2] was 63%, compared with 58% in the same period of 2014.
• Adjusted net profit [1] was RMB461 million, an increase of 66% year-over-year. Adjust net profit margin [2] was 23%, compared with 20% in the same period of 2014.
• Basic earnings per share was RMB0.172.
• Total assets were RMB14,177 million as at 30 June, 2015, compared with RMB9,842 million as at 31 December, 2014.
• Total cash was RMB2,140 million, compared with RMB2,476 million as at 31 December, 2014.

Operational Highlights:

Six months ended 30 June, 2015

Recent Development:

• Total fleet size was 84,719 vehicles as at 30 June, 2015, compared with 63,522 vehicles as at 31 December, 2014. The operating fleet size was 80,646 vehicles as at 30 June, 2015, compared with 58,773 vehicles as at 31 December, 2014.
• The Group disposed of 5,014 used vehicles during the first half of 2015. Gross margin from used vehicle sales in the first half of 2015 was negative 0.3%, demonstrating the ability to effectively dispose of used vehicles at prices close to their estimated residual values.
• The Group's short-term rental business continued to perform strongly in the first half of 2015. Average daily rental revenue per short-term rental vehicle[3] ("RevPAC") and average daily rental rate [3] ("ADRR") were RMB176 and RMB275 in the first half of 2015, compared with RMB171 and RMB277 in the first half of 2014, respectively. The fleet utilization rate [3] increased to 63.9% in the first half of 2015, while still maintaining a deliberate balance to secure more license plates.
• The UCAR Collaboration commenced in January 2015. As at 30 June, 2015, a total of 16,136 rental vehicles were rented to UCAR under long-term rental terms. The Group also saw strong synergies between short-term self-drive rentals and UCAR's chauffeured car service by renting short-term rental fleet to UCAR during weekdays.

• On 1 July 2015, the Company, Sapphire Gem Holdings Limited, an affiliate of Warburg Pincus, Beinuo Limited, ultimately controlled by Legend Capital, Deqing Investments Limited, UCAR Group, Mr. Charles Zhengyao Lu and Haode Investment subscribed to an aggregate of 5,000,000 series A preferred shares of UCAR for a total consideration of US$250 million. The Company invested US$125.0 million for a 10% stake.
• On 3 August 2015, the Company issued US$300 million 6% senior notes that are due in 2021. The notes were rated Ba1, BB+ and BB+ by Moody's, Standard & Poor's and Fitch Ratings, respectively.

Mr. Charles Lu, the Chairman and CEO of CAR, commented, "We are pleased with the fast growing and consistent financial performance that we recorded in the first half of 2015. We have dedicated ourselves to becoming China's leading auto mobility provider and our results further strengthened and extended our leadership position in China's car rental market. Our solid growth momentum was also propelled by increasing auto mobility needs. Starting from the beginning of the year, our collaboration with UCAR allowed us to capture the growth opportunities in the fast-growing mobile-enabled chauffeured car service market in China. We have optimized our corporate structure by establishing two independent business and functional platforms, with one focusing on technology-driven fleet management and financial services and the other on O2O self-drive car rental and car sharing services. We are always committed to strengthening our technology capabilities, enhancing customer experience and increasing operating efficiency."

Mr. Wilson Li, the CFO of CAR, added, "For the first half of 2015, we are delighted to deliver robust financial and operational performance, which was mainly driven by the strong performance of our short-term rental business and the commencement of our collaboration with UCAR. Our profit margin continued to expand due to further optimized business mix, operational leverage, and increasing operating efficiency. The UCAR collaboration has brought us a large volume of committed long-term revenues, extensive business synergies between chauffeured services and car rental, extra license plate resources, increasing fleet efficiency and enhanced operating leverage. We have successfully diversified our funding sources and optimized our funding structure to support sustainable business growth, while maintaining a prudent financial policy to ensure balanced leverage ratios and credit metrics."

About CAR Inc. (http://ir.zuche.com)

CAR Inc. (699.HK) is a leading auto mobility provider in China, offering comprehensive services including short-term rentals, long-term rentals, leasing and chauffeured car services through a collaboration with UCAR Technology Inc. CAR Inc's best-in-class service has made it the most recognized and trusted brand in auto mobility industry 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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