China Yongda Automobiles Services Holdings (3669) H2 2025 earnings summary

Executive summary

• Navigated macroeconomic pressure and industry restructuring with stable sales volume but declining prices and profitability divergence; NEV business drove incremental demand and growth.

• Revenue for 2025 was RMB 54,600 million, down 13.9% year-over-year, mainly due to lower sales volume and average selling price of luxury and ultra-luxury vehicles.

• Adjusted consolidated net loss (non-IFRS) was RMB 347 million, after significant non-cash impairment of RMB 5,007 million on goodwill and intangible assets.

• Focused on luxury, ultra-luxury, and NEV brands, with 128 luxury outlets, 22 mid-high end, and 46 NEV outlets; new car sales reached 153,115 units, NEV sales up 40.1% year-over-year.

• No final dividend was proposed for 2025 to preserve liquidity.

Financial highlights

• Revenue from new vehicles distribution fell 15.7% to RMB 39,143 million; luxury and ultra-luxury brands saw an 18.3% revenue drop.

• Revenue from independent new energy vehicles rose 28.1% to RMB 3,874 million; sales volume up 20.4%.

• After-sales services revenue was RMB 9,469 million, with gross profit margin at 40.0%; NEV after-sales revenue grew 65.1% to RMB 512 million.

• Gross profit was RMB 5,273 million, up from RMB 3,024 million, but overall gross margin declined to 7.9%.

• Net cash from operating activities increased 24.2% to RMB 1,886 million; free cash flow was RMB 1,094 million.

Outlook and guidance

• NEV penetration exceeded 50% in 2025; NEV sales expected to approach 50% of total new car sales in next 1-2 years.

• Over 20 new NEV models to launch in 2026, including BMW Neue Klasse iX3 and several Xiaomi and Porsche models.

• Focus on optimizing network, improving after-sales efficiency, and leveraging AI for operational gains; further investment in technology and new business areas like battery recycling.

• Industry competition is expected to stabilize, with rationalization and consolidation among dealers and brands.

• 2026 outlook includes national policies to curb price wars, stimulate consumption, and boost NEV sales via subsidies and tax reductions.