香港CPA案例分析大赛题目与答案示例

QualificationProgramme(QP)CaseAnalysisCompetition2011ThecaseKunmingExcellenceCarsCoLimitedKunmingExcellenceCarsCoLimited(KEC)isamedium-sizedChineseautomobilemanufacturer.ItisapubliccompanywhichhasbeenlistedontheHongKongStockExchange(HKEx)since2001.ItsheadofficeisinHongKonganditsmanufacturingbaseisKunming,capitalofYunnanProvince,south-westernChina.Kunmingisanemergingautomanufacturingcentre,secondonlytoShanghai.KECproduced109,860unitsofpassengervehiclesin2010,representinganincreaseof26.9%ascomparedto86,567soldin2009.ThelargeincreaseinvolumeofsalesisconsistentwiththeperformanceoftheboomingChineseautomobileindustrythroughout2009and2010.KECisamini-vanandsedanmanufacturer.Itisalsoengagedintheproductionandsaleofautomotivecomponentsandrechargeablebatteryinautomotiveandhandsetmarket.CompanystructureandhistoryKECisarelativelynewentranttotheChineseautomobileindustryandwasestablishedin1995bytheChaibrothersandaconsortiumofprivateinvestors.TheChaibrothersareHong-KongbasedentrepreneurswhooversawthelistingofthecompanyontheHKExin2001.BoardofDirectors,seniormanagementandkeyemployeesareoutlinedinAppendixA.In2004,KECacquiredasmallerKunming-basedprivateautomobilemanufacturerwithaspecialisationinmini-vanbusiness.WhilecompanymanagementandfinancialshavebeenintegratedintotheKECstructure,theKunmingmanufacturingplantoperationshaveremainedseparate.Thisistheonlyacquisitiontodate.In2009,KECenteredintoacollaborativeagreementwithFastTransSRLinRomaniaregardingtheconstructionofanassemblyplant.TheplantbecamefullyoperationalinFebruary2011.CompanymissionandvaluesKEC'smissionstatementisasfollows:KECplacesthe21stcenturyglobalconsumerfirst.Asafe,affordableandreliablevehiclemeetingcustomer'sdrivingneeds–andtheneedsoffuturegenerations.Companyvaluesareasfollows:Integrity–productsafety,ethicalworkingconditions,nowastedrawproductionmaterials,environmentalpractices,compliancewithinternationallawrequirements,industrydevelopmentsupport,ethicalleadershipInnovation–newproductdevelopment,innovativeserviceandextras,newmarketexploration,environmentallyawaredevelopment,acquisitive,opportunisticReliability–productoperatesaspromised,branddeliversonpromises,leadingafter-saleserviceEfficiency–rightprice,keepingcostsdown,staffdevelopment,productrunsefficientlyHongKongInstituteofCPAs–AllCopyrightReserved11-1ProductsandmarketshareKEChasthreeproductareas–mini-van,sedanandthecomponentsusedintheproductionofmini-vanandsedan.KECproduced109,860unitsofautomobilesin2010,representinganincreaseof26.9%ascomparedto86,567soldin2009.Fortheyearended31December2010Salesvolume(units)65,79740,5173,546Asa%ofrevenue(%)46.542.63.87.1100.0Fortheyearended31December2009Salesvolume(units)53,54330,4232,601Asa%ofrevenue(%)49.742.83.34.2100.0Mini-vanSedanOthervehiclesAutomotivepartsandcomponentsTotalRevenue(RMBmil)3,3933,1102805187,301Revenue(RMBmil)2,9192,5081952455,867109,86086,567Mini-vanAccordingtotheChinaAssociationofAutomobileManufacturers(CAAM),KEC'smini-vanranksecondinthePRCmarketintermsofsalesvolume.KEChas20%ofthePRCmarketandtheleadingmanufacturerholds30%.KEChassolidlyheldthispercentageofthemarketforeightconsecutiveyears,alwaysstayingapproximately10-12%behindthecompetition.Partofthereasonforitssecondplaceinthemarketisitssizecomparedtothecompetition(whichisroughlytwiceaslargebasedonannualrevenues),salesnetworkcoverageandthecompetition'sextensiveinvestmentinresearchanddevelopment(R&D).KEChasbeenunabletodedicatethesameamountoffundstoR&Dinthisarea,meaningthatthecompetitionwasfirsttomarketwithabreak-throughdieselengineintheearly2000s.Mini-vansalesincreased16%from2009to2010,butdroppedto46.5%ofoverallrevenuein2010.SedanKECisoneofthedominantproducersinthesedanmarketandholdsabout15%ofthemarket.KECreleasedanewmodelofitspremierbrandduringtheyear,the'HoneyBee',andthiswaswellreceivedbythePRCmarket.Sedansalesincreased24%from2009to2010,butwereataloweroverallrevenuecomparedtopreviousyear.OthervehiclesKECalsohasasmallmarketinproducingothervehicles,suchaselectricvehicles.Followingonfromotherproducttrends,salesrosefrom2009to2010andaccountedfor3.8%ofoverallrevenue.AutomobilepartsandcomponentsRevenuesfrom2009to2010increasedfrom4.2%to7.1%oftheoverallrevenuerespectively.Therechargeablebatterymarketinhandsetindustryaccountedfortheleapinrevenuegrowth.KECcontinuesitsenhancementofproductioncapacitytomeetmarketgrowingdemands.HongKongInstituteofCPAs–AllCopyrightReserved11-2OperatingenvironmentThePRCstillmanagedtopostoverallGDPgrowthof8.7%and8.9%in2009and2010respectivelydespitetheglobalrecessionafterthefinancialtsunamiin2008.Thisgrowthwasdrivenbylarge-scalegovernmentstimulusmeasuresandrisingaffluencethathelpedthecontinuedboomofthedomesticmarket.Overallgrowthislikelytobearound9.6%in2011amidinaperiodofhighdomesticinflation.Theglobalautomobilemarketwasinrecessionthroughout2009and2010duetotheuncertaininternationaleconomy.Despitethegloomyoutlookfortherestofworld(ROW)automobilemanufacturers,theChineseindustrycontinuedtothrive.TheChinaAssociationofAutomobileManufacturers(CAAM)reportsthattheproductionvolumeofautomobiles