Exhibit 99.1
Explanatory Note
Management Accounts for the First Half of Fiscal Year 2018.
In accordance with its obligations under NYSE Rule 203.03, eHi Car Services Limited (the “Company”) has furnished the Securities and Exchange Commission with a Form 6-K setting forth the Company’s balance sheet as of June 30, 2018 and interim results for the six months ended June 30, 2018.
These materials reflect management accounts and have not been prepared in accordance with U.S. GAAP, are not audited or reviewed, and may not be indicative of the Company’s results for the year ended December 31, 2018. Non-GAAP information is not prepared in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies.
To supplement its unaudited condensed consolidated financial statements, the Company uses adjusted EBITDA as a non-GAAP financial measure. Adjusted EBITDA represents net income or loss before depreciation and amortization, share-based compensation, interest expenses, interest income, provision for income taxes, gains from waiver of warrants and gains from sale of cost method investment. A limitation of using adjusted EBITDA is that adjusted EBITDA excludes the above-mentioned items that have been and will continue to be significant recurring portions of the Company’s business for the foreseeable future.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2017 | June 30, 2018 | |||||||
RMB | RMB | |||||||
unaudited | unaudited | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 671,350,459 | 388,305,451 | ||||||
Restricted cash | 612,121,936 | 433,453,466 | ||||||
Accounts receivable, net | 446,223,596 | 417,546,022 | ||||||
Prepaid expenses and other current assets | 1,505,857,012 | 1,692,382,610 | ||||||
Transaction related costs | - | 90,574,334 | ||||||
Short term loans receivable | 50,000,000 | - | ||||||
Assets held for sale | 78,904,246 | 87,976,183 | ||||||
Total current assets | 3,364,457,249 | 3,110,238,066 | ||||||
Cost method investment | 10,800,000 | 69,000,000 | ||||||
Property and equipment, net | 7,057,045,317 | 7,439,870,235 | ||||||
Intangible assets | 66,505,752 | 66,384,791 | ||||||
Vehicle purchase deposits | 367,839,691 | 367,839,691 | ||||||
Deferred tax assets, non-current | - | - | ||||||
Other non-current assets | 61,814,009 | 22,321,798 | ||||||
Total assets | 10,928,462,018 | 11,075,654,581 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | 617,870,011 | 574,930,198 | ||||||
Accrued expenses and other current liabilities | 434,097,575 | 321,024,606 | ||||||
Income tax payable | 18,180,848 | 12,120,702 | ||||||
Short-term debt | 1,376,807,390 | 2,723,079,355 | ||||||
Total current liabilities | 2,446,955,824 | 3,631,154,861 | ||||||
Long-term debt | 4,237,694,941 | 3,234,856,277 | ||||||
Deferred tax liabilities, non-current | 27,638,307 | 27,638,307 | ||||||
Other non-current liabilities | 9,626,177 | 8,782,681 | ||||||
Total liabilities | 6,721,915,249 | 6,902,432,126 | ||||||
Shareholders’ equity | ||||||||
Common shares | 878,663 | 878,663 | ||||||
Additional paid in capital | 4,489,246,326 | 4,493,290,358 | ||||||
Accumulated other comprehensive income | 121,858,122 | 72,521,815 | ||||||
Accumulated deficits | (405,436,342 | ) | (393,468,381 | ) | ||||
Total shareholders’ equity | 4,206,546,769 | 4,173,222,455 | ||||||
Total liabilities and shareholders’ equity | 10,928,462,018 | 11,075,654,581 |
2017 Half Year | 2018 Half Year | |||||||
RMB | RMB | |||||||
Net revenues: | ||||||||
Car Rentals | 997,057,810 | 1,209,730,091 | ||||||
Car Services | 258,263,689 | 290,891,484 | ||||||
Total net revenues | 1,255,321,499 | 1,500,621,575 | ||||||
Cost of revenues | (877,299,000 | ) | (1,057,813,571 | ) | ||||
Gross profit | 378,022,499 | 442,808,004 | ||||||
Selling and marketing expenses | (70,514,316 | ) | (64,175,909 | ) | ||||
General and administrative expenses | (126,993,963 | ) | (171,499,982 | ) | ||||
Other operating income | 1,469,013 | 4,012,358 | ||||||
Total operating expenses | (196,039,266 | ) | (231,663,533 | ) | ||||
Profit from operations | 181,983,233 | 211,144,471 | ||||||
Interest income | 4,863,411 | 11,319,368 | ||||||
Interest expense | (112,291,027 | ) | (195,525,839 | ) | ||||
Other income (expense), net | 1,203,006 | (4,096,942 | ) | |||||
Income before income taxes | 75,758,623 | 22,841,058 | ||||||
Provision for income taxes | (14,593,365 | ) | (10,873,097 | ) | ||||
Net income | 61,165,258 | 11,967,961 | ||||||
Net income attributable to common shareholders | 61,165,258 | 11,967,961 | ||||||
4.9 | % | 0.8 | % | |||||
Net income | 61,165,258 | 11,967,961 | ||||||
Changes in cumulative foreign currency translation adjustment, net of tax of nil | (8,327,024 | ) | (49,336,307 | ) | ||||
Comprehensive income (loss) | 52,838,234 | (37,368,346 | ) |
Reconciliation of Net Income and Adjusted EBITDA Results
2017 Half Year | 2018 Half Year | |||||||
RMB | RMB | |||||||
Net income | 61,165,258 | 11,967,961 | ||||||
Add(subtract) | ||||||||
Share based compensation | 7,512,391 | 3,413,276 | ||||||
Interest income | (4,863,411 | ) | (11,319,368 | ) | ||||
Interest expenses | 112,291,027 | 195,525,839 | ||||||
Provision for income taxes | 14,593,365 | 10,873,097 | ||||||
Depreciation and amortization | 367,406,312 | 440,945,999 | ||||||
Adjusted EBITDA | 558,104,942 | 651,406,804 | ||||||
Total Net revenues | 1,255,321,499 | 1,500,621,575 | ||||||
Adjusted EBITDA MARGIN | 44.5 | % | 43.4 | % |