YONGDA AUTO(03669)2023-08-25 04:00Revenue 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].