Thu 04/29/2021 09:02 AM
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eHi Car Services Limited reported a total revenue of RMB 6.171 billion ($953.4 million) for 2020, up from RMB 5.722 billion in 2019, representing a 7.9% year-over-year growth. It recorded a gross profit of RMB 805 million, down 28.3% from RMB 1.123 billion in 2019, according to an annual report seen by Reorg. Continue reading for the Asia Core Credit team's analysis of eHi Car Services Limited and request a trial to access to reporting and analysis of many more high-yield situations in the region.

Loss for 2020 was RMB 299.6 million, widening a loss of RMB 33.1 million in 2019.

In 2020, total fleet size declined by 17.3% year over year to 69,011 vehicles, with utilization rate down by seven percentage points to 68%. Adjusted EBITDA decreased by 4.5% year over year to RMB 1.649 billion. Adjusted EBITDA margin increased by one percentage point to 48%, on stable fleet utilization and pricing discipline.


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Cash and cash equivalents stood at RMB 792.5 million as of Dec. 31, and restricted cash amounted to RMB 109.8 million versus current liabilities of RMB 4.55 billion.

Total assets were RMB 11.681 billion, and total liabilities were RMB 7.778 billion as of Dec. 31.

Operating activities generated RMB 1.422 billion net cash inflow, reversing a net cash outflow of RMB 28.1 million in 2019 as the company only spent RMB 1.445 billion in purchasing vehicles, compared with RMB 2.67 billion a year earlier.

Investment activities cost eHi RMB 39.6 million, narrowing from RMB 107.1 million in 2019. It recorded a net outflow of RMB 907.4 million from financing activities, reversing a net inflow of RMB 166 million a year earlier, mainly attributable to repayment of syndicated loans and payment by instalments for vehicle purchases with a sale-back option, which cost the company RMB 553 million and RMB 655.7 million, respectively.

Bank borrowings bear annual interest rates ranging from 3.45% to 6.65%, compared with 4.75% to 6.65% in 2019. Other borrowings bear annual interest rates of 4.62% to 9.5%.

The company repaid a principal amount of $58.5 million in August under its $180 million three-year syndicated loan facility, which bears a floating interest rate and credit monitoring fee of LIBOR plus 4.25%. The outstanding amount under the loan is $136.5 million, of which $58.5 million is due in April and $78 million due in November.

The loan required a cash deposit of $3.1 million, which constitutes restricted cash.

An updated capitalization structure of eHi is listed below:





























































































































































eHi Car Services


12/31/2020

EBITDA Multiple

(CNY in Millions)

Amount

US$ Amt.

Maturity

Rate

Book


Secured bank borrowings

326.4

50.3



Unsecured bank borrowings

569.8

87.8



Secured other borrowings

559.4

86.2



Syndicated loans

1,152.1

177.5



Total Bank and Other Loans

2,607.7

401.8

1.8x

$398 Million 5.875% Senior Notes Due 2022

2,583.0

398.0

Aug-14-2022

5.875%

Total Offshore Bonds

2,583.0

398.0

3.5x

Total Debt

5,190.7

799.8

3.5x

Less: Cash and Equivalents

(902.3)

(139.0)

Plus: Restricted Cash

109.8

16.9

Net Debt

4,398.2

677.7

3.0x

Operating Metrics

US$ Amt.

LTM Reorg EBITDA

1,470.2

226.5


Liquidity

Plus: Cash and Equivalents

902.3

139.0

Less: Restricted Cash

(109.8)

(16.9)

Total Liquidity

792.5

122.1

Credit Metrics

Gross Leverage

3.5x

Net Leverage

3.0x


Notes:
Source: Company filings, Wind, Cbonds; 2020 EBITDA Calculated based on company filings
US$ Translation: CNY/USD rate used for USD conversion is 6.49.


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