XXF Group Holdings (2473) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2025 rose 16.8% year-over-year to RMB769.2 million, with gross profit up 10.3% to RMB230.9 million and net profit up 15.9% to RMB22.6 million.

• Gross margin declined to 30.0% from 31.8% due to a higher share of lower-margin outright car sales.

• Adjusted net profit (non-IFRS) increased 1.9% year-over-year to RMB24.3 million.

• Expansion included growing the self-operated sales network from 89 to 110 outlets and launching the first overseas subsidiary in Uzbekistan.

• The company continued digital transformation, expanding AI and big data applications to improve efficiency and risk control.

Financial highlights

• Revenue: RMB769.2 million (+16.8% YoY); gross profit: RMB230.9 million (+10.3% YoY); profit for the period: RMB22.6 million (+15.9% YoY).

• Outright car sales revenue surged to RMB59.0 million from RMB4.2 million YoY.

• Gross profit margin decreased to 30.0% from 31.8% due to higher outright car sales with lower margins.

• Selling and marketing expenses rose 16.0% to RMB57.9 million; administrative expenses increased 8.4% to RMB60.6 million.

• Net finance costs increased 7.7% to RMB86.8 million.

Outlook and guidance

• Plans to deepen domestic market penetration, accelerate overseas expansion, and further digital transformation.

• Will explore new business in the low-altitude economy, leveraging a newly established subsidiary with a Civil Unmanned Aircraft Operation Certificate.

• Focus on intelligent process upgrades and cost reduction.