Financial Performance - Total revenue for the first half of 2023 reached RMB 35.684 billion, an increase of 11.6% year-on-year, while gross profit decreased by 6.9% to RMB 3.423 billion[6] - Net profit and profit attributable to owners of the company for the first half of 2023 were RMB 425 million and RMB 407 million, respectively, both down 38.9% year-on-year[6] - Gross profit for the first half of 2023 decreased by 6.9% to RMB 3.423 billion, with new car sales gross profit dropping by 85.5% to RMB 777 million[17] - Net profit attributable to the company's owners decreased by 38.9% to RMB 407 million in the first half of 2023[17] - Operating profit declined by 37.6% to RMB 667.8 million[42] - Profit attributable to owners of the company decreased by 38.9% to RMB 406.5 million[46] - Total revenue for the six months ended June 30, 2023, was RMB 34.86 billion, an increase from RMB 31.39 billion in the same period last year[98] - Gross profit for the six months ended June 30, 2023, was RMB 2.60 billion, compared to RMB 3.08 billion in the same period last year[98] - Operating profit for the six months ended June 30, 2023, was RMB 667.77 million, down from RMB 1.07 billion in the same period last year[98] - Net profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 406.54 million, compared to RMB 665.75 million in the same period last year[98] - Basic earnings per share for the six months ended June 30, 2023, were RMB 0.21, down from RMB 0.34 in the same period last year[98] - The company's total comprehensive income for the six months ended June 30, 2023, was RMB 425.01 million, compared to RMB 695.26 million in the same period last year[99] - The company's total assets as of June 30, 2023, were RMB 34.86 billion, with total liabilities of RMB 32.26 billion[98] - The company's net cash flow from operating activities for the six months ended June 30, 2023, was RMB 2.60 billion, compared to RMB 3.08 billion in the same period last year[98] - The company's total equity attributable to the owners as of June 30, 2023, was RMB 2.60 billion, compared to RMB 3.08 billion in the same period last year[98] - Total assets decreased slightly to RMB 29,984,178 thousand as of June 30, 2023, compared to RMB 32,464,731 thousand at the end of 2022[100] - Non-current assets remained stable at RMB 15,299,445 thousand, with a minor increase in property, plant, and equipment to RMB 6,082,166 thousand[100] - Current assets decreased to RMB 14,684,733 thousand, primarily due to a reduction in trade and other receivables to RMB 6,879,763 thousand[100] - Current liabilities decreased to RMB 12,023,241 thousand, driven by a reduction in trade and other payables to RMB 6,825,087 thousand[100] - Net current assets stood at RMB 2,661,492 thousand, reflecting a slight decrease from RMB 2,830,186 thousand at the end of 2022[100] - Non-current liabilities increased to RMB 3,498,412 thousand, mainly due to higher borrowings and lease liabilities[101] - Net assets decreased to RMB 14,462,525 thousand, with equity attributable to the company's owners at RMB 13,999,437 thousand[101] - The company recorded a net profit of RMB 406,544 thousand for the six months ended June 30, 2023[102] - Other comprehensive income for the period was RMB 184 thousand, contributing to a total comprehensive income of RMB 406,728 thousand[102] - The company repurchased and canceled shares worth RMB 72,808 thousand during the period[102] - The company's operating cash flow before working capital changes was RMB 1,237,074 thousand in the first half of 2023, compared to RMB 1,678,859 thousand in the same period last year[105] - Net cash generated from operating activities was RMB 1,099,422 thousand in the first half of 2023, a decrease from RMB 3,152,402 thousand in the same period last year[105] - The company's inventory decreased by RMB 468,173 thousand in the first half of 2023, compared to a decrease of RMB 532,680 thousand in the same period last year[105] - Trade and other receivables decreased by RMB 1,008,962 thousand in the first half of 2023, compared to a decrease of RMB 1,993,799 thousand in the same period last year[105] - The company's net cash used in investing activities was RMB 130,627 thousand in the first half of 2023, a decrease from RMB 599,783 thousand in the same period last year[106] - The company's profit before tax was RMB 552,004 thousand in the first half of 2023, compared to RMB 944,493 thousand in the same period last year[105] - The company's depreciation of property, plant, and equipment was RMB 407,505 thousand in the first half of 2023, compared to RMB 373,420 thousand in the same period last year[105] - The company's amortization of other intangible assets was RMB 51,675 thousand in the first half of 2023, compared to RMB 50,166 thousand in the same period last year[105] - The company's share-based payment expenses were RMB 26,991 thousand in the first half of 2023, compared to RMB 21,934 thousand in the same period last year[105] - The company's proceeds from the sale of a subsidiary were RMB 112,416 thousand in the first half of 2023[106] - Net cash used in financing activities was RMB 1,343,017 thousand, a decrease compared to RMB 1,218,146 thousand in the same period last year[107] - Cash and cash equivalents decreased by RMB 374,222 thousand, compared to an increase of RMB 1,334,473 thousand in the previous year[107] - New borrowings amounted to RMB 11,035,847 thousand, slightly lower than the RMB 11,949,398 thousand in 2022[107] - Repayment of medium-term notes was RMB 370,000 thousand, with no such repayment in the previous year[107] - Dividend payments totaled RMB 575,981 thousand, a significant reduction from RMB 948,826 thousand in 2022[107] - Cash and cash equivalents at the end of the period were RMB 1,811,575 thousand, down from RMB 3,584,820 thousand in the previous year[107] - Net profit attributable to the company's owners decreased by RMB 14,542 thousand compared to the same period last year[117] - Total comprehensive income attributable to the company's owners decreased by RMB 14,542 thousand compared to the same period last year[117] - Basic earnings per share decreased from RMB 0.34 to RMB 0.21 year-over-year[119] - Diluted earnings per share decreased from RMB 0.34 to RMB 0.21 year-over-year[119] - Deferred tax assets increased by RMB 63,471 thousand after adjustment as of December 31, 2022[120] - Deferred tax liabilities increased by RMB 5,750 thousand after adjustment as of December 31, 2022[120] - The company's profit attributable to owners decreased to RMB 406,544 thousand in 2023 from RMB 665,752 thousand in 2022, indicating a decline in profitability[143] - The company declared an interim dividend of RMB 0.105 per share for the six months ended June 30, 2023, compared to no dividend declared in the same period in 2022[145] - The weighted average number of shares for calculating diluted earnings per share decreased slightly to 1,949,066 thousand in 2023 from 1,968,959 thousand in 2022[146] Sales Performance - New car sales volume in the first half of 2023 was 85,759 units, with new car sales revenue of RMB 27.043 billion, up 6.5% year-on-year, but gross margin decreased by 3.09 percentage points to 0.49%[7] - New energy vehicle sales in the first half of 2023 reached 16,240 units, up 116.5% year-on-year, accounting for 18.0% of total sales[7] - New car sales volume in the first half of 2023 increased by 11.7% to 85,759 units, with Porsche sales up 6.4% to 5,220 units and BMW sales up 1.7% to 36,732 units[18] - Second-hand car transaction volume reached 41,084 units in the first half of 2023, a year-on-year increase of 30.6%, with dealer sales accounting for 19,916 units, a year-on-year increase of 207.8%, generating dealer revenue of RMB 2.452 billion, a year-on-year increase of 74.3%[23] - Second-hand car gross profit reached RMB 187 million in the first half of 2023, a year-on-year increase of 7.5%, with dealer gross profit accounting for RMB 160 million, a year-on-year increase of 23.4%[23] - New energy vehicle sales reached 16,240 units in the first half of 2023, a year-on-year increase of 116.5%, accounting for 18.0% of total sales[25] - Independent new energy brand sales reached 7,687 units in the first half of 2023, a year-on-year increase of 169.8%, with dealer sales accounting for 3,024 units and direct sales accounting for 4,663 units[25] - Independent new energy brand after-sales service revenue reached RMB 70.83 million in the first half of 2023, a quarter-on-quarter increase of 81.2%, with an average single vehicle output value of RMB 2,478[25] - Independent new energy brand after-sales service customer base reached 19,688 by the end of June 2023, a year-on-year increase of 94.1%[25] - New energy vehicle mini-program registered users reached 61,600 in the first half of 2023, with car owner members reaching 10,500[25] - New car sales volume in the passenger vehicle sales and service segment reached 85,759 units in the first half of 2023, up 11.7% from 76,752 units in the same period of 2022[35] - Luxury and ultra-luxury brand new car sales volume increased by 7.6% to 62,233 units in the first half of 2023, compared to 57,835 units in the same period of 2022[36] - Used car sales volume surged by 207.8% to 19,916 units in the first half of 2023, compared to 6,471 units in the same period of 2022[36] - Used car sales revenue grew by 74.3% to RMB 2,451.9 million in the first half of 2023, compared to RMB 1,406.5 million in the same period of 2022[37] - New car sales revenue increased to RMB 23,637,843 thousand, up from RMB 22,459,089 thousand in the same period last year[125] - Used car sales revenue increased significantly to RMB 2,451,947 thousand from RMB 1,406,530 thousand year-over-year[125] - Passenger car sales revenue for the six months ended June 30, 2023, was RMB 29,495,153,000, an increase from RMB 26,805,391,000 in the same period in 2022[132] - After-sales service revenue for the six months ended June 30, 2023, was RMB 5,204,375,000, up from RMB 4,419,082,000 in the same period in 2022[132] - Total revenue from external customers for passenger car sales and services reached RMB 34,699,528,000 for the six months ended June 30, 2023, compared to RMB 31,224,473,000 in the same period in 2022[132] - The cost of passenger car sales and services for the six months ended June 30, 2023, was RMB 32,166,875,000, up from RMB 28,190,790,000 in the same period in 2022[133] - Service income for the six months ended June 30, 2023, was RMB 822,464,000, an increase from RMB 594,545,000 in the same period in 2022[135] - Sales of cars to Shanghai Baocheng Shenjiang amounted to RMB 20,817 thousand in the first half of 2023, compared to no sales in the same period of 2022[188] - Sales of parts to Shanghai Yongda Changrong Automobile Sales Service Co., Ltd. and Yongda Financial Leasing totaled RMB 2,212 thousand in the first half of 2023, up from RMB 76 thousand in the same period of 2022[188] After-Sales Service - After-sales service revenue, including maintenance and extended products, reached RMB 5.204 billion in the first half of 2023, up 17.8% year-on-year, with a gross margin of 43.07%[7] - After-sales service revenue increased by 17.8% to RMB 5.204 billion in the first half of 2023, with maintenance revenue up 26.1% to RMB 4.424 billion[20] - After-sales service revenue increased by 17.8% to RMB 5,204.4 million in the first half of 2023, compared to RMB 4,419.1 million in the same period of 2022[37] - After-sales service revenue grew to RMB 5,202,619 thousand from RMB 4,418,009 thousand in the same period last year[125] - Service income from Yongda Financial Leasing decreased to RMB 5,153 thousand in the first half of 2023 from RMB 7,838 thousand in the same period of 2022[189] Used Car Business - Used car transaction volume in the first half of 2023 was 41,084 units, up 30.6% year-on-year, with used car sales revenue of RMB 2.452 billion, up 74.3% year-on-year[7] - Second-hand car transaction volume reached 41,084 units in the first half of 2023, a year-on-year increase of 30.6%, with dealer sales accounting for 19,916 units, a year-on-year increase of 207.8%, generating dealer revenue of RMB 2.452 billion, a year-on-year increase of 74.3%[23] - Second-hand car gross profit reached RMB 187 million in the first half of 2023, a year-on-year increase of 7.5%, with dealer gross profit accounting for RMB 160 million, a year-on-year increase of 23.4%[23] - Used car sales volume surged by 207.8% to 19,916 units in the first half of 2023, compared to 6,471 units in the same period of 2022[36] - Used car sales revenue grew by 74.3% to RMB 2,451.9 million in the first half of 2023, compared to RMB 1,406.5 million in the same period of 2022[37] - Used car sales revenue increased significantly to RMB 2,451,947 thousand from RMB 1,406,530 thousand year-over-year[125] New Energy Vehicles - New energy vehicle sales in the first half of 2023 reached 16,240 units, up 116.5% year-on-year, accounting for 18.0% of total sales[7] - New energy vehicle sales reached 16,240 units in the first half of 2023, a year-on-year increase of 116.5%, accounting for 18.0% of total sales[25] - Independent new energy brand sales reached 7,687 units in the first half of 2023, a year-on-year increase of 169.8%, with dealer sales accounting for 3,024 units and direct sales accounting for 4,663 units[25] - Independent new energy brand after-sales service revenue reached RMB 70.83 million in the first half of 2023, a quarter-on-quarter increase of 81.2%, with an average single vehicle output value of RMB 2,478[25] - Independent new energy brand after-sales service customer base reached 19,688 by the end of June 2023, a year-on-year increase of 94.1%[25] - New energy vehicle mini-program registered users reached 61,600 in the first half of 2023, with car owner members reaching 10,500[25] Digital Transformation and Operational Efficiency - The company adjusted its short-term strategy by focusing on core brands and improving operational efficiency through digitalization[8] - The company will focus on optimizing its brand structure, particularly in luxury cars, used cars, and new energy vehicles, to enhance operational efficiency and profitability[9] - The company plans to accelerate the establishment of a shared operation platform, including user operations, derivative businesses, and shared repair centers, to reduce management costs[11] - The company will focus on digital transformation, leveraging big data and AI to enhance customer experience and operational efficiency, while exploring new business ecosystems[12] - The company is focusing on digital transformation, aiming to complete a more integrated digital operation system by the end of 2023[32] - The company is implementing a comprehensive digital retail process, focusing on customer-centric digital user service platforms using big data and AI to enhance customer experience and efficiency[61] - The company is building a "shared platform" to integrate mid- and back-office resources, aiming to improve overall operational efficiency and user stickiness[61] - The company is advancing digital transformation and proactively laying out battery recycling and shared body repair centers[61] Strategic Initiatives - The company is exploring opportunities in the battery recycling industry, including

Revenue and Profitability - For the six months ended June 30, 2023, the total revenue including agency service income was RMB 35.684 billion, an increase of 11.6% compared to RMB 31.986 billion for the same period in 2022[2]. - New car dealership revenue for the same period was RMB 27.043 billion, up 6.5% from RMB 25.399 billion in the previous year[2]. - After-sales service revenue reached RMB 5.204 billion, reflecting a growth of 17.8% from RMB 4.419 billion year-on-year[2]. - The company reported a comprehensive gross profit of RMB 3.423 billion, a decrease of 6.9% from the previous year, primarily due to a significant drop in new car dealership gross profit[5]. - The gross profit for the six months ended June 30, 2023, was RMB 2,600,172 thousand, compared to RMB 3,080,713 thousand in the same period of 2022, indicating a decrease of about 15.58%[18]. - The net profit for the six months ended June 30, 2023, was RMB 4.25 billion, a decrease of 38.9% from RMB 6.95 billion in the same period of 2022[3]. - The company reported a total comprehensive income of RMB 425,008 thousand for the six months ended June 30, 2023, compared to RMB 695,259 thousand in the same period of 2022, a decrease of approximately 38.8%[19]. Sales Performance - In the first half of 2023, new car sales reached 85,759 units, a year-on-year increase of 11.7%[6]. - The number of new car sales in the passenger vehicle sales and service segment was 85,759 units, up 11.7% from 76,752 units in the same period last year[63]. - The volume of used car transactions increased by 30.6%, totaling 41,084 units compared to 31,454 units in the same period last year[2]. - The revenue from used car sales increased by 74.3% to RMB 2,451.9 million, compared to RMB 1,406.5 million for the same period in 2022[65]. - The gross profit from second-hand cars was RMB 187 million, a year-on-year increase of 7.5%[8]. Financial Position - Cash generated from operating activities was RMB 1.099 billion, down 65.1% from RMB 3.152 billion year-on-year[3]. - The net debt ratio as of June 30, 2023, was 11.3%, slightly up from 10.5% at the end of 2022[3]. - Total assets as of June 30, 2023, were RMB 15,299,445 thousand, slightly up from RMB 15,295,365 thousand as of December 31, 2022[20]. - Current liabilities decreased to RMB 12,023,241 thousand from RMB 14,339,180 thousand, showing a reduction of approximately 16.2%[21]. - The net asset value as of June 30, 2023, was RMB 14,462,525 thousand, down from RMB 14,722,596 thousand at the end of 2022, a decline of about 1.76%[21]. Operational Efficiency - The inventory turnover days were 24.4 days, remaining stable compared to 23.7 days in the previous year[3]. - The company maintained strict control over inventory levels, with inventory balance decreasing by 11.0% to RMB 4.055 billion as of June 30, 2023[5]. - The average inventory turnover days increased slightly to 24.4 days from 23.7 days year-on-year[77]. - The total operating costs for the passenger car sales and services segment were RMB 32,166,875,000, up from RMB 28,190,790,000, indicating a rise of about 14%[41]. New Energy Vehicles - In the first half of 2023, the sales volume of all brands of new energy vehicles reached 16,240 units, representing a year-on-year growth of 116.5% and accounting for 18.0% of total sales[10]. - The independent new energy brand achieved sales of 7,687 units in the first half of 2023, a year-on-year growth of 169.8%, with 3,024 units sold through dealership models and 4,663 units through direct sales[10]. - The company is focusing on the development of core operational capabilities for new energy brands, monitoring trends among leading brands like Tesla and NIO[14]. - The company is committed to expanding its new energy vehicle services and collaborating with leading domestic brands to meet consumer trends[88]. Strategic Initiatives - The company aims to drive growth through three main strategies: luxury cars, used cars, and new energy vehicles, focusing on "electrification, digitalization, and sharing"[85]. - The company plans to enhance its used car business, "永達二手車," by upgrading its certification brand and implementing a "2+1" channel strategy for retail[87]. - The company is implementing a fully digital retail process to enhance customer experience and operational efficiency through big data and AI[88]. - The company is advancing a user-centered digital transformation, targeting a complete integrated digital operation system by the end of 2023[16]. Shareholder Information - The company declared an interim dividend of RMB 0.105 per share for the six months ended June 30, 2023, compared to no dividend in the same period of 2022[48]. - The interim dividend declared is RMB 0.105 per share, amounting to an estimated total of approximately HKD 222 million based on the total issued share capital of 1,935,573,013 shares[95]. - The company has implemented a share repurchase program to benefit shareholders by increasing net asset value per share and/or earnings per share[93]. Governance and Compliance - The company has adopted the corporate governance code and has complied with its provisions during the six months ended June 30, 2023[91]. - The company has established an audit and compliance committee consisting of three independent non-executive directors[94]. - The board consists of six executive directors and three independent non-executive directors[98]. Market Conditions - In the first half of 2023, the domestic automotive market experienced intensified competition and demand weakness, but government policies supported market stability[85]. - The company faces interest rate risk due to floating rate borrowings linked to the People's Bank of China benchmark rate, which could increase financing costs if rates rise[84].

Automotive Market Performance - In 2022, the total retail sales of passenger cars in China reached 20.543 million units, a year-on-year increase of 1.9%, with luxury car sales also increasing by 1.9% to 2.702 million units, and new energy vehicle sales soaring by 90.0% to 5.674 million units[6]. - In 2022, the total retail sales of passenger vehicles in China reached 20.543 million units, a year-on-year increase of 1.9%[18]. - The retail sales of luxury vehicles amounted to 2.702 million units in 2022, also reflecting a year-on-year growth of 1.9%[18]. - New energy vehicle sales surged by 90.0% year-on-year, reaching 5.674 million units, accounting for 27.6% of total passenger vehicle sales[19]. - The total number of vehicles in China reached 320 million by the end of 2022, with new energy vehicles comprising 13.1 million units, representing 4.1% of the total[20]. Financial Performance - The company's total revenue for 2022 was RMB 73.521 billion, a decrease of 7.2% year-on-year, while the gross profit fell by 12.8% to RMB 7.886 billion[7]. - Net profit for 2022 was RMB 1.486 billion, down 43.3% year-on-year, with profit attributable to shareholders decreasing by 42.5% to RMB 1.425 billion[7]. - The company's total revenue and gross profit for 2022 were RMB 73.521 billion and RMB 7.886 billion, respectively, reflecting declines of 7.2% and 12.8% year-on-year[21]. - Net profit for 2022 was RMB 1.486 billion, a decrease of 43.3% compared to the previous year[21]. - The gross profit for the twelve months ended December 31, 2022, was RMB 6,389.3 million, a decrease of 17.6% from RMB 7,752.7 million in 2021[42]. New Car Sales - New car sales in 2022 totaled 187,276 units, generating revenue of RMB 58.192 billion, with luxury brand sales accounting for 86.7% of total sales, an increase of 2.1 percentage points year-on-year[9]. - The new car sales volume in 2022 was 187,276 units, with sales revenue of RMB 58.192 billion, where luxury brand sales accounted for 86.7% of total revenue, up by 2.1 percentage points year-on-year[22]. - The new car sales gross margin was 2.47% in 2022, down by 1.02 percentage points from the previous year[23]. After-Sales and Used Car Business - After-sales service revenue, including maintenance and extended products, was RMB 10.099 billion, a decrease of 12.5% year-on-year, with a stable gross margin of 44.81%[9]. - The used car transaction volume reached 80,832 units, up 12.9% year-on-year, with dealership volume increasing by 50.6% to 16,684 units, generating revenue of RMB 3.370 billion, a 50.2% increase[9]. - The revenue from used car dealership increased by 50.2% to RMB 3,370.0 million, compared to RMB 2,243.0 million in the previous year[42]. New Energy Vehicle Initiatives - The company achieved a total of 24,603 new energy vehicle sales, a year-on-year increase of 54.5%, representing 12.9% of total sales, with independent new energy brand sales growing by 221.2% to 9,591 units[9]. - The sales volume of new energy vehicles reached 24,603 units, a growth of 54.5% year-on-year, accounting for 12.9% of total sales[31]. - The company obtained 28 new independent new energy vehicle store authorizations, bringing the total to 36[31]. Digital Transformation and Operational Efficiency - The company is committed to digital transformation, implementing a strategy that integrates front-end and back-end operations to enhance customer experience and operational efficiency[15]. - The company implemented a digital management system for used cars, enhancing operational efficiency and financial integration[30]. - A "shared platform" strategy is being developed to improve efficiency and reduce costs across various business units, including traditional fuel vehicles and new energy[16]. Talent and Team Development - The company is enhancing talent acquisition in new energy, used cars, and digital sectors to build a professional team aligned with future trends[17]. - The company emphasizes talent development in key growth areas such as new energy vehicles and used cars, aligning with future industry trends[38]. Sustainability and Corporate Social Responsibility - The company is focused on sustainable growth and responding to national low-carbon strategies, aiming to deliver robust performance to shareholders and investors[17]. - The company is actively participating in the national "low carbon" strategy and is committed to fulfilling ESG-related corporate social responsibilities[69]. - The company maintains a commitment to corporate social responsibility, focusing on the harmonious relationship between social, operational, and environmental factors[195]. Governance and Compliance - The company has a strong focus on corporate governance and risk management, with key executives holding relevant qualifications and certifications in finance and accounting[80][81]. - The company has confirmed compliance with the non-competition agreement with controlling shareholders, including 張德安先生 and Asset Link, as of December 31, 2022[115]. - The company has adopted and complied with the corporate governance code as per the listing rules throughout the reporting period[143]. Future Outlook and Strategic Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[74]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of $30 million earmarked for potential deals[74]. - The company aims to enhance its digital transformation by implementing a "front-end + strong back-end" digital strategy to improve operational efficiency and user engagement[67].

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 73.52 billion, a decrease of 7.2% compared to RMB 79.21 billion for the year ended December 31, 2021[2]. - The gross profit for the year ended December 31, 2022, was RMB 7.89 billion, down 12.8% from RMB 9.04 billion for the previous year[2]. - The net profit for the year ended December 31, 2022, was RMB 1.49 billion, a significant drop of 43.3% from RMB 2.62 billion in the previous year[3]. - The basic earnings per share for the year ended December 31, 2022, was RMB 0.72, compared to RMB 1.26 for the previous year[3]. - The total comprehensive income for 2022 was RMB 1,484,323 thousand, compared to RMB 2,614,541 thousand in 2021, reflecting a significant decrease[22]. - The total revenue for the year ended December 31, 2022, was RMB 72,023,888 thousand, a decrease of 7.4% from RMB 77,916,554 thousand in 2021[19]. - The operating profit for 2022 was RMB 2,303,862 thousand, down 39.4% from RMB 3,808,961 thousand in 2021[19]. - The net profit from continuing operations for 2022 was RMB 1,485,577 thousand, a decline of 41.4% compared to RMB 2,537,735 thousand in 2021[19]. Revenue Breakdown - New car revenue for the year ended December 31, 2022, was RMB 58.19 billion, a decline of 8.8% from RMB 63.78 billion in the previous year[2]. - After-sales service revenue for the year ended December 31, 2022, was RMB 10.10 billion, a decrease of 12.5% from RMB 11.54 billion for the previous year[3]. - New car sales reached 187,276 units, generating revenue of RMB 58.192 billion, with luxury brand sales accounting for 86.7% of total sales, an increase of 2.1 percentage points year-on-year[8]. - The revenue from passenger car sales and services for 2022 was RMB 71,660,723,000, down from RMB 77,567,434,000 in 2021, indicating a decrease of about 7.3%[37]. - The revenue from used car sales for the twelve months ended December 31, 2022, was RMB 3,370.0 million, an increase of 50.2% from RMB 2,243.0 million in 2021[58]. Operational Metrics - The number of used car transactions increased by 12.9% to 80,832 units for the year ended December 31, 2022, compared to 71,605 units in the previous year[3]. - The inventory turnover days improved to 22.1 days, a reduction of 1.0 day compared to 2021, indicating better inventory management[7]. - The gross margin for new car sales was 2.47%, down 1.02 percentage points from the previous year, while the luxury brand new car sales gross margin was 2.73%, a decrease of 1.36 percentage points[8]. - The gross profit from used car dealerships was RMB 294 million, reflecting a year-on-year increase of 42.1%, with an average revenue per unit of RMB 202,000 and a gross margin of 8.72%[11]. - The company registered over 1 million users on its service platform app by the end of 2022, enhancing user engagement and service experience[9]. Market Trends - The overall retail sales of passenger cars in China for 2022 reached 20.54 million units, a year-on-year increase of 1.9%[4]. - The sales volume of new energy vehicles in 2022 grew by 90.0% to 5.67 million units, accounting for 27.6% of total passenger car sales[5]. - The company plans to expand its market presence in the independent new energy vehicle segment, which includes brands like BYD and AITO[28]. - The company is focusing on enhancing its after-sales service offerings to improve customer retention and revenue growth[28]. Financial Position - The net debt ratio as of December 31, 2022, was 10.5%, down from 18.3% as of December 31, 2021, a decrease of 7.8 percentage points[3]. - The company’s total liabilities decreased from RMB 9,126,717 thousand in 2021 to RMB 8,017,640 thousand in 2022, a decrease of approximately 12.16%[47]. - The company’s cash and cash equivalents as of December 31, 2022, were RMB 1,191,716 thousand, slightly down from RMB 1,202,793 thousand in 2021[50]. - The company reported a net current asset position of RMB 2,830,186 thousand, down from RMB 3,289,814 thousand, a decrease of 13.9%[24]. Strategic Initiatives - The company is actively pursuing digital transformation centered on user experience, aiming to transition from traditional dealerships to digital retail service providers[18]. - The company launched the Yongda Automotive Service Platform in 2022, improving operational efficiency and user experience during the pandemic[17]. - The company is implementing a digital transformation strategy to enhance operational efficiency and customer engagement, focusing on a "front-end + strong back-end" digital approach[85]. - The company aims to strengthen its leading position in luxury car brands BMW and Porsche while optimizing its traditional gasoline vehicle business to enhance profitability[82]. Shareholder Information - The proposed final dividend for the year ended December 31, 2022, is RMB 0.292 per share, totaling approximately RMB 570 million, pending shareholder approval[42]. - The final dividend proposed for the year ended December 31, 2022, is RMB 0.292 per share, amounting to an estimated total of RMB 570 million[94]. - The company aims to enhance shareholder value through share repurchases to increase net asset value per share and earnings per share[91].

YONDA 永达汽车 china yongda automobiles services holdings limited 中 國 永 達 汽 車 服 務 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號：03669 中 期 報 告 2022 ti 11 12 HBARA A BMW iX - 11-11-11 目錄 The milling | --- | --- | |------------------------------|-------| | | | | 公司資料 | 2 | | 財務摘要 | 3 | | 董事長報告書 | 4 | | 管理層討論與分析 | 9 | | 企業管治及其他資料 | 33 | | 簡明綜合財務報表審閱報告 | 44 | | 簡明綜合損益表 | 45 | | 簡明綜合損益及其他全面收益表 | 47 | | 簡明綜合財務狀況表 | 48 | | 簡明綜合權益變動表 | 50 | | 簡明綜合現金流量表 | 52 | | 簡明綜合財務報表附註 | 55 | 公司資料 | --- | --- | |--------------------------------- ...

Financial Performance - The group's total revenue and gross profit for 2021 were RMB 79.205 billion and RMB 9.041 billion, respectively, representing year-on-year growth of 14.3% and 25.0%[13] - The net profit for 2021 was RMB 2.618 billion, a year-on-year increase of 51.1%, while profit attributable to the owners of the company was RMB 2.480 billion, up 52.6%[13] - The total revenue for the year ended December 31, 2021, was RMB 77,916.6 million, representing a 14.2% increase from RMB 68,201.2 million for the year ended December 31, 2020[42] - The net profit for the twelve months ended December 31, 2021, was RMB 2,618.1 million, a 51.1% increase from RMB 1,733.1 million in the same period of 2020[56] - The profit before tax for the twelve months ended December 31, 2021, was RMB 3,374.8 million, an increase of 57.7% from RMB 2,139.6 million in the same period of 2020[52] Sales and Market Trends - In 2021, the total retail sales of passenger cars in China reached 20.146 million units, a year-on-year increase of 4.4%, with luxury car sales increasing by 6.6% to 3.669 million units[11] - Revenue from luxury brand new car sales in 2021 was RMB 53.950 billion, a year-on-year increase of 10.3%, with BMW and Porsche sales growing by 16.0% and 9.1%, respectively[14] - The sales of new energy vehicles (NEVs) surged by 169.1% in 2021, reaching 2.989 million units, with pure electric vehicles making up 81.8% of this total[22] - The company aims to develop 100 independent new energy brand outlets by the end of 2022 and maintain this growth rate annually[19] - The company is focusing on the rapid growth of the new energy vehicle (NEV) sector, establishing dedicated teams for independent operation and development of NEV services[77] After-Sales and Service Revenue - After-sales service revenue, including maintenance and extended products, was RMB 11.543 billion, a year-on-year increase of 20.5%, with a service absorption rate of 88.92%[15] - The gross margin for after-sales services was 45.10%, remaining stable compared to the previous year[28] - The after-sales service revenue reached RMB 11.543 billion, a 20.5% increase from the previous year, with a 9.2% quarter-on-quarter growth in the second half of 2021[28] Strategic Initiatives and Future Plans - The company plans to optimize its brand structure and regional distribution while maintaining robust growth in after-sales services[18] - The company will actively seek merger and acquisition opportunities in key luxury brands to enhance its market position[18] - The company is transitioning from a brokerage model to a dealership model in the used car sector, leveraging a "2+1" channel strategy[18] - The company is investing in new technology development, allocating $10 million for R&D in electric vehicle technology[80] - The company aims to enhance its digital transformation by creating a digital management platform to improve efficiency and decision-making[77] Corporate Governance and Management - The board of directors is responsible for leading and controlling the company, ensuring compliance with applicable laws and regulations[168] - The company has established three committees: the Remuneration Committee, the Audit and Compliance Committee, and the Nomination Committee, primarily composed of independent non-executive directors[182] - The company has confirmed compliance with the non-competition agreement with its controlling shareholders, including Mr. Zhang De'an and Asset Link[132] - The management team emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 15% over the next three years[80] - The company provides formal onboarding and continuous training for new directors to ensure they understand their responsibilities and the business environment[174] Risk Management - The group faces risks related to fluctuations in the financial condition and operating performance of automobile manufacturers, potentially impacting profitability and revenue[111] - The group is subject to various market risks, including currency, interest rate, credit, and liquidity risks[115] - The company is using financial derivatives to hedge against interest rate and foreign exchange risks associated with its borrowings[72] Employee and Shareholder Engagement - The company has 16,697 employees as of December 31, 2021, and provides training to enhance their technical and product knowledge[148] - The company is dedicated to protecting shareholder interests and ensuring effective communication through various channels[110] - The company has established measurable goals for board diversity, considering factors such as gender, age, and professional experience during candidate selection[195] Environmental and Social Responsibility - The company emphasizes energy efficiency and resource utilization, adhering to environmental laws and setting long-term goals for energy and water usage[105] - The company has implemented a scientific waste discharge system to mitigate environmental impact during operations[105] - The company will continue to respond to the national "low carbon" strategy and commit to ESG-related corporate social responsibilities[77]