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

Executive summary

• Revenue for H1 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.

• New vehicle sales volume was 83,698 units, down 7.4% year-over-year; pre-owned vehicle transaction volume fell 14.2%.

• After-sales service revenue was RMB4,778 million, with repair and maintenance gross margin stable at 40.69%.

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

Financial highlights

• Revenue: RMB31,036 million (down 13.0% YoY); gross profit: RMB2,584 million (down 24.5% YoY); gross margin: 8.33%.

• Net profit attributable to owners: RMB111 million (down 72.6% YoY); EPS: RMB0.06 (down from RMB0.21 YoY).

• New vehicle sales revenue: RMB22,911 million (down 15.3% YoY); gross profit margin: 1.64%.

• Pre-owned vehicle revenue: RMB2,064 million (down 15.8% YoY); gross profit margin: 5.61%.

• 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.