Automotive Sales Performance - Revenue from automotive sales decreased by 0.9% to RMB 69,052.3 million[2] - New car sales increased by 3.9% to 232,543 units[3] - New car sales reached 233,000 units in the first half of 2024, a year-on-year increase of 3.9%[11] - New car sales revenue decreased by RMB 3,757.0 million or 5.8% to RMB 60,812.0 million, primarily due to a decline in average selling prices[76] - Mercedes-Benz accounted for approximately 40.5% of the company's new car sales revenue, down from 43.1% in the same period last year[76] - New car sales costs decreased by RMB 901.3 million or 1.4% to RMB 62,802.1 million for the six months ended June 30, 2024[77] After-Sales Services - Revenue from after-sales services increased by 13.8% to RMB 10,964.1 million[2] - Gross profit from after-sales services rose by 12.7% to RMB 5,035.0 million[3] - After-sales service revenue rose by RMB 1,327.5 million or 13.8% to RMB 10,964.1 million, due to increased service visits and higher average revenue per visit[76] - ZhongSheng's after-service business saw a 45.2% year-on-year increase in used car retail sales and a 22.9% increase in insurance renewal policies in the first half of 2024[8] - ZhongSheng's maintenance, manufacturer warranty, and accident repair service visits increased by 3.4%, 17.2%, and 9.1% respectively in the first half of 2024[8] Used Car Business - Used car transaction volume surged by 53.9% to 101,525 units[3] - ZhongSheng's used car business achieved a comprehensive profit of RMB 670 million in the first half of 2024, a year-on-year increase of 25.1%[9] - ZhongSheng's used car retail sales increased from 18,000 units in the first half of 2023 to 26,000 units in the first half of 2024[9] - ZhongSheng's used car flagship stores reached 49 by the end of June 2024, with many stores achieving monthly sales of over 100 units[9] - Used car sales revenue increased by RMB 3,139.6 million or 61.6% to RMB 8,240.3 million, driven by higher sales volume[76] - Used car sales costs increased by RMB 2,854.6 million or 59.9% to RMB 7,622.3 million for the six months ended June 30, 2024[78] Financial Performance - Net profit for the period dropped by 50.3% to RMB 1,500.0 million[3] - The company's revenue for the first half of 2024 was RMB 82,421,409 thousand, compared to RMB 81,901,699 thousand in the same period last year[14] - The company's net profit for the first half of 2024 was RMB 1,500,027 thousand, compared to RMB 3,015,283 thousand in the same period last year[14] - The company's comprehensive income for the first half of 2024 was RMB 1,394,832 thousand, compared to RMB 2,612,033 thousand in the same period last year[15] - Gross profit decreased by RMB 2,043.6 million or 29.3% to RMB 4,926.2 million for the six months ended June 30, 2024[79] - Gross margin decreased to 6.0% for the six months ended June 30, 2024, compared to 8.5% for the same period in 2023[79] - Operating profit decreased by RMB 2,011.9 million or 42.2% to RMB 2,755.8 million for the six months ended June 30, 2024[81] - Net profit decreased by RMB 1,515.3 million or 50.3% to RMB 1,500.0 million for the six months ended June 30, 2024[82] Market Share and Brand Performance - The company holds a 32% market share in Lexus new car sales, 18% in Mercedes-Benz, and 10% in Toyota, Volvo, and Jaguar Land Rover in China[11] - Domestic passenger car sales in China were 9.939 million units in the first half of 2024, a year-on-year increase of 3.9%[12] - New energy vehicle (NEV) sales in China reached 4.048 million units in the first half of 2024, a year-on-year increase of 37.5%, with a penetration rate of 40.7%[12] - Used passenger car transactions in China reached 7.528 million units in the first half of 2024, a year-on-year increase of 6.9%[13] Financial Position and Assets - Total non-current assets decreased to RMB 45,145,794 thousand from RMB 45,669,804 thousand[16] - Total current assets increased to RMB 61,818,198 thousand from RMB 57,598,657 thousand[16] - Total current liabilities rose to RMB 40,915,857 thousand from RMB 33,529,583 thousand[17] - Net current assets decreased to RMB 20,902,341 thousand from RMB 24,069,074 thousand[17] - Total assets minus current liabilities stood at RMB 66,048,135 thousand compared to RMB 69,738,878 thousand[17] - Total non-current liabilities decreased to RMB 20,394,469 thousand from RMB 23,692,302 thousand[17] - Net assets slightly decreased to RMB 45,653,666 thousand from RMB 46,046,576 thousand[17] - Inventory increased to RMB 18,353,521 thousand from RMB 16,366,096 thousand[16] - Cash and cash equivalents rose to RMB 17,146,435 thousand from RMB 15,611,984 thousand[16] - Equity attributable to owners of the parent company decreased to RMB 45,487,875 thousand from RMB 45,797,296 thousand[18] - The company's total equity as of June 30, 2024, was RMB 46,046,576 thousand, with a net profit of RMB 1,579,552 thousand for the period[19] Cash Flow and Financing - The company's operating cash flow for the six months ended June 30, 2024, was RMB 3,673,291 thousand, a decrease from RMB 4,496,260 thousand in the same period last year[21] - The company's net cash from operating activities for the six months ended June 30, 2024, was RMB 2,925,583 thousand, compared to RMB 3,466,967 thousand in the same period last year[21] - The company's depreciation and impairment of property, plant, and equipment for the six months ended June 30, 2024, was RMB 1,022,091 thousand, an increase from RMB 441,543 thousand in the same period last year[20] - The company's finance costs for the six months ended June 30, 2024, were RMB 792,249 thousand, up from RMB 717,969 thousand in the same period last year[20] - The company's inventory increased by RMB 2,009,353 thousand for the six months ended June 30, 2024, compared to an increase of RMB 190,385 thousand in the same period last year[21] - The company's trade payables and bills increased by RMB 2,203,538 thousand for the six months ended June 30, 2024, compared to an increase of RMB 1,048,410 thousand in the same period last year[21] - The company's exchange rate fluctuations reserve decreased by RMB 105,195 thousand for the six months ended June 30, 2024[19] - The company's total comprehensive income for the six months ended June 30, 2024, was RMB 1,394,832 thousand, compared to RMB 2,612,033 thousand in the same period last year[19] - The company's declared final dividend for 2023 was RMB 1,734,665 thousand[19] - Investment activities resulted in a net cash outflow of RMB 433,293 thousand, compared to RMB 513,336 thousand in the same period last year[22] - Financing activities resulted in a net cash outflow of RMB 942,448 thousand, compared to a net cash inflow of RMB 1,689,296 thousand in the same period last year[23] - Net increase in cash and cash equivalents was RMB 1,549,842 thousand, compared to RMB 4,642,927 thousand in the same period last year[23] - Cash and cash equivalents at the end of the period were RMB 17,146,435 thousand, compared to RMB 16,352,611 thousand in the same period last year[23] - Purchase of property, plant, and equipment amounted to RMB 1,238,252 thousand, a decrease from RMB 1,620,616 thousand in the same period last year[22] - Proceeds from the sale of property, plant, and equipment were RMB 662,164 thousand, compared to RMB 825,795 thousand in the same period last year[22] - Bank loans and other borrowings obtained amounted to RMB 51,861,550 thousand, slightly lower than RMB 52,770,810 thousand in the same period last year[23] - Repayment of bank loans and other borrowings was RMB 51,694,222 thousand, compared to RMB 48,107,631 thousand in the same period last year[23] - Interest received from investments was RMB 224,321 thousand, slightly lower than RMB 230,930 thousand in the same period last year[22] Debt and Bonds - The company issued USD 600 million in unsecured senior bonds in July 2024[5] - The company issued $600 million in bonds with a 5.98% interest rate, maturing on January 30, 2028[74] - The first batch of Panda Bonds was issued on August 1, 2024, with a total issuance size of RMB 1 billion, a coupon rate of 3.5%, and a maturity of three years[75] - The company repurchased and canceled $292,166,000 of its 2026 bonds, leaving $157,834,000 outstanding as of August 1, 2024[73] - The company's 2025 convertible bonds have an outstanding principal amount of HKD 3,124 million after partial redemption[97] - The company's 2026 bonds have an outstanding principal amount of USD 157.834 million after partial repurchase[99] - The company issued $600 million in bonds with a 5.98% interest rate, maturing on January 30, 2028[100] - The first batch of Panda Bonds was issued with a total size of RMB 1 billion, a coupon rate of 3.5%, and a maturity period of three years[101] Operational Metrics - Active customer base in four key cities grew by 9% to 900,000[4] - ZhongSheng's enterprise WeChat has nearly 7.4 million customers, and its ZhongShengGo membership platform has about 3.1 million subscribers with an average daily visit count of 840,000[8] - ZhongSheng's social media accounts have a total of 16.6 million followers, and new media leads exceeded 1 million in the first half of 2024[8] - ZhongSheng operates 26 maintenance service centers in 20 cities, with an additional 19 centers under construction or planning[7] - ZhongSheng has deployed nearly 10,000 courtesy cars in central cities and established over 1,000 insurance renewal specialist positions across the group[7] - The company operates 419 dealerships nationwide, including 269 luxury brands and 150 mid-to-high-end brands, with no significant changes since 2022[11] - Inventory turnover days increased to 36.2 days for the six months ended June 30, 2024, compared to 33.6 days for the same period in 2023[90] - The company's employee count decreased to 30,944 as of June 30, 2024, down from 31,180 at the end of 2023[93] Strategic Initiatives - BMW became the first company in China to publicly exit the irrational price war in July 2024, adjusting sales targets to rebalance retail prices and demand[6] - The company plans to expand its core regions and brands through new store openings and acquisitions, focusing on used car and after-sales services[95] Forward-Looking Statements - The company's forward-looking statements are based on existing data and current outlook, subject to risks and uncertainties[113] - The forward-looking statements include business outlook, financial performance estimates, business plan forecasts, and development strategies[113] - The statements are based on subjective expectations, assumptions, and premises beyond the company's control[113] - The forward-looking statements may prove to be incorrect and may not be realized in the future[113] - The company's management accounts are used for the statements, which have not been audited by the company's auditors[113] - Shareholders and potential investors should not overly rely on the forward-looking statements[113]

Economic Growth and Market Trends - In 2023, China's economic growth reached 5.2%, exceeding the initial target of 5%[7] - New car sales in the second half of 2023 increased by over 20% compared to the first half[7] - The Chinese government announced a plan to stimulate equipment replacement and trade-in, expecting a 100% increase in car scrappage and a 45% increase in used car transactions by 2027 compared to 2023[7] - The automotive market in China has fully transformed into an ownership market, emphasizing local customer relationship management and market share[9] - The company anticipates strong growth momentum in the automotive and automotive services industry in 2024, supported by government initiatives and economic targets[7] - In 2023, total passenger car sales in China reached 21.7 million units, a year-on-year increase of 5.8%[29] - The retail sales of new energy passenger vehicles surged by 38.9% to 7.32 million units, with a penetration rate of 33.7%[30] Company Strategy and Objectives - The company set a strategic vision to become the most trusted automotive service brand for quality consumers in China, with specific goals including establishing 100 service centers and doubling the revenue from accident vehicle repairs[9] - The company aims to achieve a 1.0 ratio of used car sales to new car sales as part of its strategic objectives[9] - The company’s strategy focuses on local market centralization and cross-brand operations, aiming to enhance customer loyalty and market share by providing a comprehensive automotive service ecosystem[10] - The company aims to create a well-recognized local automotive service brand through integrated operations and customer-centric strategies, regardless of the vehicle brand owned by customers[10] - The company plans to establish more benchmark used car stores to strengthen local market share and enhance customer connections[22] Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 179,290.1 million, a decrease of RMB 566.8 million or 0.3% compared to the previous year[38] - Revenue from new car sales was RMB 140,214.9 million, down RMB 5,205.1 million or 3.6% due to a decline in new car sales volume[38] - The revenue from after-sales services increased by RMB 2,698.9 million or 15.5%, reaching RMB 20,076.0 million, driven by an increase in service visits[38] - The used car sales revenue grew by RMB 4,156.8 million or 42.3%, totaling RMB 13,984.8 million, attributed to an increase in used car sales volume[38] - The group's gross profit for the year ended December 31, 2023, was RMB 13,764.3 million, a decrease of RMB 2,267.3 million or 14.1% compared to the previous year[43] - The net profit for the year was RMB 4,990.9 million, down RMB 1,644.3 million or 24.8%, resulting in a profit margin of 2.8%[47] Customer Relationship Management - The company has implemented a centralized customer relationship management (CRM) system that integrates various business segments, allowing cross-brand operations and enhancing customer engagement[14] - The centralized CRM system allows customers to access services across various platforms, including new cars, used cars, after-sales services, and insurance renewals, enhancing the overall customer experience[14] - Over 60% of the 3.8 million active customers became subscribers of the 中升GO platform, while the corporate WeChat account has over 6.8 million customers[17] - The company’s digital membership platform records customer data and service history, facilitating service bookings and reward point accumulation for customers[10] Operational Efficiency and Service Quality - The company operates over 400 stores across China, witnessing local governments implementing various policies to stimulate automotive consumption[7] - The monthly transaction volume of the used car business increased from 7,000 units in January to 20,000 units in December 2023, demonstrating strong operational execution amid market fluctuations[18] - The maintenance service centers are expected to improve customer experience through higher repair quality and shorter repair times, fostering brand loyalty[27] - The centralized maintenance service strategy aims to enhance operational efficiency and cost structure, leveraging network effects to boost used car and rental vehicle business[27] Employee and Workforce Management - The total number of employees was 31,180, a decrease from 32,943 employees as of December 31, 2022[61] - The employee turnover rate for the year is 24.19%, with a total of 9,947 employees leaving, which is a decrease of 5,561 from the previous year[109] - The group has received recognition as one of the "Top 100 Best Employers in China for 2023" and "2023 Employment Contribution Model Employer," highlighting its performance in talent recruitment and development[104] - The group emphasizes employee training and development, aiming to cultivate capable management personnel to support business expansion plans[103] - Employee satisfaction surveys indicate that over 90% of employees are satisfied with the company's management practices[112] Environmental, Social, and Governance (ESG) Initiatives - The group aims to enhance its ESG governance by establishing an ESG committee under the board of directors to oversee sustainability strategies and initiatives[76] - The group is committed to sustainable development and actively supports low-carbon initiatives in response to government policies[74] - The company has established a "Climate Change Policy" to mitigate the impacts of climate change on its operations and aims to reduce carbon emissions and associated risks[136] - The group has implemented various measures to improve energy efficiency, including transitioning spray booths from diesel to electric power[126] - The group has set a target for new energy vehicle sales to account for approximately 10% by 2026, which is expected to reduce carbon emissions by about 67,711 tons per year[124] Corporate Governance - The board of directors emphasizes the importance of high-quality governance to protect shareholder interests and enhance corporate value[169] - The company has adhered to the principles outlined in the Corporate Governance Code throughout the reporting period[171] - The board consists of executive directors, including the chairman and CEO, and independent non-executive directors, ensuring a balance of skills and experience[175][179] - The company has established an independence assessment mechanism for the board, which is reviewed annually to enhance efficiency and identify areas for improvement[183] - The company encourages continuous professional development for directors to enhance their knowledge and skills[184]

Core Viewpoint - UBS has issued a "Buy" rating for Zhongsheng Holdings (00881), adjusting its earnings forecast for 2025 to 2027 down by 3% based on last year's performance, with a slight decrease in target price from HKD 20 to HKD 19 [1] Group 1: Financial Performance - The company's performance last year met market expectations, with overall new car sales remaining roughly flat year-on-year in the second half of the year [1] - The sales revenue from new cars decreased by 1.3% year-on-year, while after-sales service revenue increased by 9.1% [1] - The revenue from used car sales reached RMB 8.9 billion, marking a record high [1] Group 2: Margin Analysis - The gross margins for both new car and after-sales service businesses declined year-on-year, indicating increased profitability pressure in the second half of the year [1]

Group 1 - The core viewpoint of the report is that Bank of America Securities maintains a "Buy" rating on Zhongsheng Holdings (00881), highlighting the potential of the used car trading and after-sales service business as new growth drivers for the company [1] - The report indicates a slight adjustment in the earnings forecast for 2024 and 2025, with a decrease of 5% and 2% respectively, and a minor reduction in the target price to HKD 17 [1] - The company's performance in the second half of last year exceeded expectations, with a year-on-year revenue growth of 4%, reaching RMB 97 billion, despite a 1% decline in new car business revenue and flat sales volume [1] Group 2 - The report notes that the gross profit margin for the business segment fell by 2 percentage points to 0.3%, primarily due to pricing pressure from the price war in the Chinese electric vehicle industry and weak demand recovery [1] - Significant growth was recorded in the used car trading and after-sales service segments, surpassing market expectations, with after-sales service revenue increasing by 9% and used vehicle transaction volume growing by 32% year-on-year [1]

Core Viewpoint - Zhongsheng Holdings (00881) experienced a stock price increase of over 10% following the release of its 2023 annual performance report, despite a slight decline in overall revenue and profit [1] Financial Performance - The company reported a total revenue of 179.29 billion RMB for the year, representing a year-on-year decrease of 0.32% [1] - Shareholder profit attributable to the company was 5.018 billion RMB, down 24.97% compared to the previous year [1] - A final dividend of 0.797 HKD per share is proposed [1] Used Car Business - The used car segment showed significant growth, with total transaction volume exceeding 164,000 units, marking a year-on-year increase of 17% [1] - The corresponding comprehensive profit from the used car business surpassed 1.2 billion RMB, reflecting a 55% year-on-year increase and accounting for 6.9% of the total annual comprehensive profit, achieving a historical high [1] Market Conditions - Bank of America noted that Zhongsheng Holdings' performance in the second half of the year slightly exceeded expectations, with revenue in that period growing by 4% year-on-year to reach 97 billion RMB [1] - The new car business revenue declined by 1%, with sales volume remaining flat and the average price of comprehensive products decreasing by 1% [1] - The gross margin for the business segment fell by 2 percentage points to 0.3% year-on-year, primarily due to pricing pressures from the electric vehicle industry's price wars and weak demand recovery [1]

Core Viewpoint - Zhongsheng Holdings (00881) reported a slight decline in revenue and a significant drop in net profit for the fiscal year ending December 31, 2023, indicating challenges in the new car sales market while showing growth in the used car and after-sales service segments [1] Group 1: Financial Performance - The company achieved revenue of 179.29 billion RMB, a year-on-year decrease of 0.32% [1] - Shareholders' profit attributable to the company was 5.018 billion RMB, down 24.97% year-on-year [1] - Basic earnings per share were 2.09 RMB, with a proposed final dividend of 0.797 HKD per share [1] Group 2: Revenue Breakdown - Revenue from new car sales was 140.215 billion RMB, a decline of 3.6% compared to 2022, primarily due to a decrease in new car sales volume [1] - Revenue from boutique and after-sales services was 25.09 billion RMB, an increase of 2.0% year-on-year, with after-sales service revenue growing by 15.5% to 20.076 billion RMB [1] - Used car sales revenue reached 13.985 billion RMB, up 42.3% year-on-year, driven by increased sales volume [1] Group 3: Business Segment Contribution - New car sales accounted for 78.2% of total revenue, down from 80.9% in 2022 [1] - Boutique and after-sales services contributed 14.0% to total revenue, up from 13.7% in 2022 [1] - Used car sales represented 7.8% of total revenue, increasing from 5.4% in 2022 [1] Group 4: Used Car Business Growth - The used car business saw significant growth in both transaction volume and overall profit, with monthly transaction volume increasing from 7,000 units in January to 20,000 units in December [1] - Total used car transactions grew by 17% year-on-year to over 164,000 units, with corresponding profit increasing by 55% to over 1.2 billion RMB, accounting for 6.9% of the total annual profit [1] Group 5: Service Center Expansion - As of March 2024, the company operates 20 Zhongsheng brand service centers in 15 cities, with 14 more under construction and an additional 12 planned [2] - Once completed, these 46 service centers will cover 29 cities, approximately 65% of stores, and nearly 70% of active retained customers [2] - The company aims to deepen engagement with insurance companies and customers to enhance network effects in the local repair service market [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 中 升 集 團 控 股 有 限 公 司 Zhongsheng Group Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：881） 截至二零二三年十二月三十一日止年度的 年度業績公告 中升集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其附屬 公司（統稱「本集團」）截至二零二三年十二月三十一日止年度的綜合業績如下： 重點摘要 二零二三年 二零二二年 同比變動 （經重列） （人民幣百萬元，特別說明除外） 財務概要 收入 汽車銷售 154,199.7 155,248.0 –0.7% ...

智通财经APP获悉，中升控股(00881)早盘反弹逾4%，年内累计跌幅仍超20%，截至发稿，涨4.47%，报14.5港元，成交额3031.18万港元。 消息面上，恒生指数有限公司宣布截至 2023年12月31日之恒生指数系列季度检讨结果，恒生指数成份股没有变动，成份股数目维持 82 只。恒生中国企业指数成份股维持 50只，调入中国联通(00762)，剔除中升控股。 中金此前指出，新车价格受终端折扣加大影响承压，叠加部分品牌销量下滑影响中升控股营收表现；二手车业务和维修服务贡献增量，彰显公司经营韧性。汇丰也表示，定价压力对新车销售利润率构成压力，需求动力减弱和电动车转型持续。不过，稳定的售后服务部分缓和了利润侵蚀，而二手车业务尚未从低潮起飞。 ...

智通财经APP获悉，中升控股(00881)跌超4%，截至发稿，跌3.34%，报13.9港元，成交额4252.79万港元。 消息面上，招商证券报告指出，中升主销品牌拖累业绩，长期关注从经销向服务转型。豪华车销售方面，奔驰/宝马/奥迪/雷克萨斯2023年在华销量分别为76.5万/82.5万/72.9万/18.1万辆，同比基本持平/+4.2%/+13.5%/-1.4%，宝马/奥迪新能源占比分别为12.1%/4.3%。整体上维持增长，但仍跑输乘用车行业10.6%增速。 中银国际表示，预期中升控股去年新车销量同比下跌4%，去年下半年奢侈品牌汽车折扣增加，不过复苏仍较预期为佳，估计去年下半年新车销售毛利约7,000万元人民币，全年新车销售利润率约0.63%，售后服务收入去年上半年倒退4.6%后，下半年恢复增长超过5%。该行预期，去年纯利同比倒退26%至28%，到48亿至49亿元人民币，主要因为新车利润率下跌。 ...

智通财经APP获悉，大和发布研究报告称，将中升控股(00881)评级由“买入”降至“持有”，将去年新车收入预测下调2%，去年至2025年售后收入预测下调15%至32%，但二手车收入预测则上调2%至14%，目标价由53港元大削至16港元。 该行估计，中升去年下半年至今年，新车销售毛利率进一步削弱，中升将会更加倚赖售后服务及二手车销售，长远并非坏事，但去年盈利可能未达预期，基于该行与管理层的讨论，预期中升去年新车销售量50万辆，同比大致持平，毛利率0.6%至0.7%，反映去年下半年毛利率只有0.2%，低于之前预期，展望今年新车销售持平，毛利率约0.7%。未来几年传统高端品牌增长缓慢，主要因为市场转往智能汽车技术。 ...