China Yongda Automobiles Services Holdings (3669) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB27,072 million, down 12.8% year-over-year, mainly due to lower new vehicle sales and average selling prices, especially in luxury and ultra-luxury brands.

• Adjusted net profit (excluding one-off impairment) was RMB54 million, down 46.3% year-over-year, while reported net loss attributable to owners was RMB3,331 million due to a non-cash impairment of RMB3,539 million on long-term assets.

• Gross profit margin improved to 8.76% from 8.33% year-over-year, despite an 8.3% decline in gross profit to RMB2,370 million.

• Net cash from operating activities rose 66.9% to RMB1,167 million, and inventory turnover days improved to 26.3.

• Interim dividend of RMB0.070 per share declared, up from RMB0.059 per share last year.

Financial highlights

• New vehicle sales volume fell 13.4% to 72,501 units; new energy vehicle sales rose 49% to 10,312 units.

• Revenue from new vehicle sales and related services was RMB20,532 million, down from RMB23,984 million year-over-year.

• After-sales services revenue was stable at RMB4,660 million, with gross margin around 40.35%.

• Pre-owned vehicle transaction volume was 30,427 units, with revenue at RMB2,164 million and gross margin improved to 6.22%.

• Operating cash flow increased 66.9% to RMB1,167 million.

Outlook and guidance

• NEV new car sales expected to approach 50% of total new car sales in the next 1-2 years, with continued focus on expanding NEV and luxury brands.

• Continued optimization of outlet network, cost control, and business quality improvement.

• Emphasis on cash flow management, digital transformation, and new business areas like battery recycling and AI.

• Industry expected to shift from price war to technology-driven competition.