China Yongda Automobiles Services Holdings (3669) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 was RMB31,036 million, down 13.0% year-over-year due to lower new vehicle sales and average selling prices, especially in luxury and ultra-luxury brands.

• Net profit attributable to owners was RMB111 million, a 72.6% decrease year-over-year, reflecting margin pressure and intense market competition.

• Gross profit fell 24.5% to RMB2,584 million, with gross margin dropping to 8.33% from 9.59% a year earlier.

• Maintained a healthy net gearing ratio of 12.5% and generated RMB699 million in net cash from operating activities.

• Customer base expanded to 1.78 million registered users and 1.264 million customers under management.

Financial highlights

• Revenue from new vehicle distribution was RMB22,911 million, down 15.3% year-over-year.

• Repair and maintenance revenue was RMB4,654 million, up 0.2% year-over-year.

• Pre-owned vehicle transaction volume was 35,236 units, down 14.2% year-over-year.

• Operating profit was RMB224 million, a 66.4% decrease year-over-year.

• Interim dividend of RMB0.059 per share declared, down from RMB0.105 per share last year.

Outlook and guidance

• The company expects continued intense competition, price wars, and oversupply in the domestic auto market, with a focus on efficiency, cost control, and digital transformation.

• Plans to strengthen luxury and new energy vehicle segments, optimize outlet network, and expand pre-owned and after-sales businesses.

• Will continue to prioritize cash flow, cost reduction, and digitalization to drive quality growth.