China Yongda Automobiles Services Holdings (3669) H1 2026 earnings summary

Executive summary

• Revenue for 1H 2026 was RMB 20,849 million, down 23.0% year-over-year due to a sharp decline in new vehicle sales, especially traditional fuel brands.

• Net profit was RMB 11 million, a significant improvement from the net loss in H2 2025, but down 79.3% from adjusted profit in H1 2025.

• Gross profit was RMB 1,989 million, down 16.1% year-over-year, with gross margin rising to 9.5%, up 0.7 percentage points.

• Operating cash flow remained robust at RMB 1,173 million, essentially flat year-over-year.

• The market faced weak domestic demand, intense price competition, and a shift toward new energy vehicles.

Financial highlights

• Revenue: RMB 20,849 million (–23.0% YoY); gross profit: RMB 1,989 million (–16.1% YoY); gross margin 9.5% (+0.7pp YoY).

• Net profit: RMB 11 million (–79.3% YoY, adjusted basis); net profit attributable to owners: RMB 27 million (–57.6% YoY, adjusted basis).

• Net cash from operating activities: RMB 1,173 million, up 0.5% year-over-year.

• Net gearing ratio: 0.0%, down from 8.5% at end-2025.

• Inventory turnover days: 31.3, up from 26.3 at end-2025.

Outlook and guidance

• The company expects continued industry pressure from weak demand and price competition but sees long-term support from rising exports and new energy vehicle penetration.

• Focus remains on optimizing core vehicle sales, after-sales, and pre-owned business, while cautiously expanding commercial applications of embodied intelligence.

• Emphasis on operational quality, cash flow, and prudent capital expenditure; no interim dividend declared to preserve liquidity.

• Continued development of commercial application services of embodied intelligence as a new growth driver.