Core Viewpoint - Zhongsheng Holdings (00881) experienced a stock price increase of over 10% following the release of its 2023 annual performance report, despite a slight decline in overall revenue and profit [1] Financial Performance - The company reported a total revenue of 179.29 billion RMB for the year, representing a year-on-year decrease of 0.32% [1] - Shareholder profit attributable to the company was 5.018 billion RMB, down 24.97% compared to the previous year [1] - A final dividend of 0.797 HKD per share is proposed [1] Used Car Business - The used car segment showed significant growth, with total transaction volume exceeding 164,000 units, marking a year-on-year increase of 17% [1] - The corresponding comprehensive profit from the used car business surpassed 1.2 billion RMB, reflecting a 55% year-on-year increase and accounting for 6.9% of the total annual comprehensive profit, achieving a historical high [1] Market Conditions - Bank of America noted that Zhongsheng Holdings' performance in the second half of the year slightly exceeded expectations, with revenue in that period growing by 4% year-on-year to reach 97 billion RMB [1] - The new car business revenue declined by 1%, with sales volume remaining flat and the average price of comprehensive products decreasing by 1% [1] - The gross margin for the business segment fell by 2 percentage points to 0.3% year-on-year, primarily due to pricing pressures from the electric vehicle industry's price wars and weak demand recovery [1]

Core Viewpoint - Zhongsheng Holdings (00881) reported a slight decline in revenue and a significant drop in net profit for the fiscal year ending December 31, 2023, indicating challenges in the new car sales market while showing growth in the used car and after-sales service segments [1] Group 1: Financial Performance - The company achieved revenue of 179.29 billion RMB, a year-on-year decrease of 0.32% [1] - Shareholders' profit attributable to the company was 5.018 billion RMB, down 24.97% year-on-year [1] - Basic earnings per share were 2.09 RMB, with a proposed final dividend of 0.797 HKD per share [1] Group 2: Revenue Breakdown - Revenue from new car sales was 140.215 billion RMB, a decline of 3.6% compared to 2022, primarily due to a decrease in new car sales volume [1] - Revenue from boutique and after-sales services was 25.09 billion RMB, an increase of 2.0% year-on-year, with after-sales service revenue growing by 15.5% to 20.076 billion RMB [1] - Used car sales revenue reached 13.985 billion RMB, up 42.3% year-on-year, driven by increased sales volume [1] Group 3: Business Segment Contribution - New car sales accounted for 78.2% of total revenue, down from 80.9% in 2022 [1] - Boutique and after-sales services contributed 14.0% to total revenue, up from 13.7% in 2022 [1] - Used car sales represented 7.8% of total revenue, increasing from 5.4% in 2022 [1] Group 4: Used Car Business Growth - The used car business saw significant growth in both transaction volume and overall profit, with monthly transaction volume increasing from 7,000 units in January to 20,000 units in December [1] - Total used car transactions grew by 17% year-on-year to over 164,000 units, with corresponding profit increasing by 55% to over 1.2 billion RMB, accounting for 6.9% of the total annual profit [1] Group 5: Service Center Expansion - As of March 2024, the company operates 20 Zhongsheng brand service centers in 15 cities, with 14 more under construction and an additional 12 planned [2] - Once completed, these 46 service centers will cover 29 cities, approximately 65% of stores, and nearly 70% of active retained customers [2] - The company aims to deepen engagement with insurance companies and customers to enhance network effects in the local repair service market [2]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 179,290.1 million, a decrease of 0.3% compared to RMB 179,856.9 million in 2022[2] - The total profit for the period was RMB 4,990.9 million, reflecting a decline of 24.8% from RMB 6,635.2 million in the prior year[3] - Operating profit decreased to RMB 8.34 billion from RMB 10.17 billion year-on-year[24] - Net profit for the year was RMB 4.99 billion, down from RMB 6.64 billion in the previous year, resulting in basic earnings per share of RMB 2.09[24][25] - The group's profit before tax for 2023 was RMB 6,830,948,000, a decrease of 23.7% from RMB 8,950,771,000 in 2022[45] - Basic earnings per share for 2023 were RMB 2.09, a decrease of 24.6% compared to RMB 2.77 in 2022[47] Automotive Sales - Automotive sales revenue was RMB 154,199.7 million, down 0.7% from RMB 155,248.0 million in the previous year[2] - New car sales volume decreased by 3.6% to 501,570 units, while luxury brand sales volume slightly declined by 0.9% to 304,782 units[3] - Revenue from new car sales declined to RMB 140,214.9 million, down RMB 5,205.1 million or 3.6% year-over-year[54] - The majority of the company's revenue, 78.2%, came from new car sales in 2023, down from 80.9% in 2022[54] After-Sales Services - Revenue from after-sales services increased by RMB 2,698.9 million or 15.5%, reaching RMB 20,076.0 million in 2023[54] - The gross profit from after-sales services increased by RMB 1,782.7 million or 23.7% to RMB 9,293.8 million, driven by growth in after-sales service business scale and a higher proportion of high-margin services[57] - The company's after-sales service volume grew by 11% to 7.47 million, with service revenue increasing by 16% and accident repair revenue up by 14%[23] Market Trends - In 2023, total passenger car sales in China reached 21.7 million units, a year-on-year increase of 5.8%[22] - The retail sales of new energy vehicles (NEVs) surged by 38.9% to 7.32 million units, with a penetration rate of 33.7%[22] - The used car market saw a transaction volume of 14.42 million units, a 15.0% increase year-on-year, with the average transaction price rising since Q2[23] Customer Engagement and Strategy - Over 60% of the 3.8 million active customers became subscribers of the Zhongsheng GO platform, while the corporate WeChat account has over 6.8 million customers, enhancing brand recognition and customer engagement[10] - The company aims to establish 100 Zhongsheng brand maintenance service centers and double the revenue from accident vehicle repair services as part of its strategic vision[5] - The strategic focus is shifting towards local market share and customer relationship management in the vehicle ownership market, contrasting with previous growth strategies in the new car market[5] Financial Position - Non-current assets increased to RMB 45,669,804 thousand in 2023, up from RMB 44,996,591 thousand in 2022, representing a growth of 1.5%[26] - Current assets rose significantly to RMB 57,598,657 thousand in 2023, compared to RMB 46,832,828 thousand in 2022, marking an increase of 22.5%[26] - Total liabilities increased to RMB 57,221,885 thousand in 2023, up from RMB 47,765,994 thousand in 2022, reflecting a growth of 19.7%[27] - Total equity reached RMB 46,046,576 thousand in 2023, an increase from RMB 44,064,425 thousand in 2022, representing a growth of 4.5%[27] Operational Efficiency - The average inventory turnover days increased from 27.0 to 31.2 days, reflecting adjustments in inventory management[69] - The company has implemented a centralized customer relationship management (CRM) system that integrates various business segments, allowing cross-brand customer acquisition and service delivery[8] - The integration of insurance companies and customers with the maintenance service centers is expected to create a network effect, increasing efficiency and service volume[18] Employee and Corporate Governance - As of December 31, 2023, the total number of employees was 31,180, a decrease from 32,943 on December 31, 2022[72] - The company emphasizes the importance of employee retention and competitive compensation to attract high-quality talent[72] - The company has complied with the corporate governance code throughout the reporting period[83] Future Outlook - The company plans to expand its presence in the luxury and mid-to-high-end passenger car market through new store openings and appropriate acquisitions[74] - The company expressed confidence in its long-term business prospects through its share repurchase program[85] - The announcement includes forward-looking statements related to the group's business outlook, financial performance estimates, business plan forecasts, and development strategies[93]

智通财经APP获悉，中升控股(00881)早盘反弹逾4%，年内累计跌幅仍超20%，截至发稿，涨4.47%，报14.5港元，成交额3031.18万港元。 消息面上，恒生指数有限公司宣布截至 2023年12月31日之恒生指数系列季度检讨结果，恒生指数成份股没有变动，成份股数目维持 82 只。恒生中国企业指数成份股维持 50只，调入中国联通(00762)，剔除中升控股。 中金此前指出，新车价格受终端折扣加大影响承压，叠加部分品牌销量下滑影响中升控股营收表现；二手车业务和维修服务贡献增量，彰显公司经营韧性。汇丰也表示，定价压力对新车销售利润率构成压力，需求动力减弱和电动车转型持续。不过，稳定的售后服务部分缓和了利润侵蚀，而二手车业务尚未从低潮起飞。 ...

智通财经APP获悉，中升控股(00881)跌超4%，截至发稿，跌3.34%，报13.9港元，成交额4252.79万港元。 消息面上，招商证券报告指出，中升主销品牌拖累业绩，长期关注从经销向服务转型。豪华车销售方面，奔驰/宝马/奥迪/雷克萨斯2023年在华销量分别为76.5万/82.5万/72.9万/18.1万辆，同比基本持平/+4.2%/+13.5%/-1.4%，宝马/奥迪新能源占比分别为12.1%/4.3%。整体上维持增长，但仍跑输乘用车行业10.6%增速。 中银国际表示，预期中升控股去年新车销量同比下跌4%，去年下半年奢侈品牌汽车折扣增加，不过复苏仍较预期为佳，估计去年下半年新车销售毛利约7,000万元人民币，全年新车销售利润率约0.63%，售后服务收入去年上半年倒退4.6%后，下半年恢复增长超过5%。该行预期，去年纯利同比倒退26%至28%，到48亿至49亿元人民币，主要因为新车利润率下跌。 ...

智通财经APP获悉，大和发布研究报告称，将中升控股(00881)评级由“买入”降至“持有”，将去年新车收入预测下调2%，去年至2025年售后收入预测下调15%至32%，但二手车收入预测则上调2%至14%，目标价由53港元大削至16港元。 该行估计，中升去年下半年至今年，新车销售毛利率进一步削弱，中升将会更加倚赖售后服务及二手车销售，长远并非坏事，但去年盈利可能未达预期，基于该行与管理层的讨论，预期中升去年新车销售量50万辆，同比大致持平，毛利率0.6%至0.7%，反映去年下半年毛利率只有0.2%，低于之前预期，展望今年新车销售持平，毛利率约0.7%。未来几年传统高端品牌增长缓慢，主要因为市场转往智能汽车技术。 ...

Economic Overview - In the first half of 2023, China's overall economy grew by 5.5%, with retail sales of consumer goods increasing by 8.2% year-on-year[7]. - In the first half of 2023, total passenger car sales in China reached 9.6 million units, a year-on-year increase of 4.5%[10]. - Luxury brand passenger car sales amounted to 2 million units, reflecting a year-on-year growth of 15.8%, driven primarily by sales from Tesla and local NEV startups[10]. - NEV retail sales in China reached 3.1 million units, a year-on-year increase of 37.3%, with a penetration rate of 32.4%[11]. - The second-hand car market in China saw a transaction volume of 6.9 million units, a year-on-year increase of 16.1%[11]. Company Strategy and Operations - The company aims to establish 100 Zhongsheng brand maintenance service centers as part of its strategic vision[8]. - The company plans to double the revenue from accident vehicle repair services and achieve a 1.0 ratio of used car to new car sales[8]. - The after-sales and used car segments continue to show steady growth despite weak new car sales demand[7]. - The company has established customer service centers, maintenance service centers, and used car centers to support operational integration[8]. - The company recognizes the need to break down operational barriers to enhance efficiency and integration across its services[8]. - The company is committed to becoming the most trusted automotive service brand for quality consumers in China[8]. - The company is leveraging its network coverage and operational management advantages to drive growth in the after-sales and used car segments[8]. Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 81,901.7 million, a decrease of RMB 4,127.6 million or 4.8% compared to the same period in 2022[19]. - New car sales revenue was RMB 64,569.0 million, down RMB 4,244.1 million or 6.2% year-on-year[19]. - Used car sales revenue increased by RMB 704.9 million or 16.0%, reaching RMB 5,100.8 million[19]. - The company reported a net profit for the same period of RMB 3,015.3 million, down RMB 443.7 million or 12.8% compared to the previous year[24]. - Gross profit for the same period was RMB 6,969.8 million, down RMB 1,497.1 million or 17.7% year-over-year[21]. Market Trends - The new car sales market is becoming increasingly complex as consumers seek signs of pre-pandemic economic conditions[7]. - Government policies aimed at stimulating automotive consumption were introduced, including measures to optimize vehicle purchase restrictions and promote second-hand car markets[12]. - The overall penetration rate and product iteration in the Chinese automotive market are leading the global automotive value chain transformation[7]. Customer Engagement and Technology - The company launched the Zhongsheng GO platform, accumulating nearly 1.8 million members, with 54% being paid subscribers[13]. - The centralized customer service centers now manage interactions covering over 73% of stores, serving 5.5 million WeChat customers[13]. - The company operates 9 repair service centers, with 5 more under construction and 21 planned, aiming to cover over half of its stores[15]. Cost Management and Efficiency - The company continues to focus on operational efficiency and cost management strategies to navigate the current market challenges[39]. - The cost of sales and services for the six months ended June 30, 2023, was RMB 74,931.9 million, a decrease of RMB 2,630.5 million or 3.4% compared to the same period in 2022[20]. - The gross profit margin decreased to 8.5% for the six months ended June 30, 2023, compared to 9.8% for the same period in 2022[21]. Debt and Financing - Bank loans and other borrowings increased to RMB 26,746.9 million as of June 30, 2023, from RMB 21,863.8 million as of December 31, 2022, primarily to meet operational and capital structure needs[28]. - The financing costs for the six months ended June 30, 2023, were RMB 717.969 million, an increase from RMB 560.242 million in the previous year[35]. - The company reported a significant increase in bank loans and other borrowings received, totaling RMB 52,770,810,000 for the six months ended June 30, 2023, compared to RMB 51,040,565,000 in the same period of 2022[41]. Shareholder Returns and Equity - The company declared a dividend for the year-end 2022, which was not specified in the provided data but indicates ongoing shareholder returns[39]. - The company has not recommended declaring any interim dividends for the six months ended June 30, 2023[61]. - The company repurchased a total of 8,372,500 shares at prices ranging from HKD 28.25 to HKD 38.30, with a total cost of approximately HKD 290.1 million during the reporting period[119]. Corporate Social Responsibility - The group is committed to fulfilling its corporate social responsibility and making a positive impact in the community[125]. - The group provides employment opportunities for local residents and disabled individuals through its national dealer network[125]. - The group has made donations to support underprivileged families and students in mountainous areas[125].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 81,901.7 million, a decrease of 4.8% compared to RMB 86,029.3 million in the same period of 2022[2]. - Gross profit for automotive sales dropped by 50.5% to RMB 1,198.7 million from RMB 2,423.6 million year-on-year[3]. - The company reported a net profit of RMB 3,015.3 million, down 12.8% from RMB 3,459.0 million year-on-year[3]. - Gross profit for the same period was RMB 6,969,810 thousand, down from RMB 8,466,935 thousand in 2022, indicating a decline of about 17.7%[14]. - Operating profit decreased to RMB 4,767,631 thousand from RMB 5,248,069 thousand, representing a decline of approximately 9.1%[14]. - The profit for the six months ended June 30, 2023, was RMB 3,015.3 million, a decrease of RMB 443.7 million or 12.8% compared to the same period in 2022, with a net profit margin of 3.7%[81]. - Profit attributable to the owners of the parent company for the six months ended June 30, 2023, was RMB 3,008.7 million, down RMB 439.9 million or 12.8% from the same period in 2022[82]. Sales and Market Trends - New car sales volume decreased by 7.6% to 223,901 units from 242,280 units in the previous year[3]. - The overall retail sales of consumer goods in China grew by 8.2% year-on-year in the first half of 2023[4]. - In the first half of 2023, total passenger car sales in China reached 9.6 million units, a year-on-year increase of 4.5%[7]. - Luxury brand passenger car sales amounted to 2 million units, reflecting a year-on-year growth of 15.8%, driven primarily by Tesla and local NEV startups[7]. - The retail sales of new energy vehicles (NEVs) reached 3.1 million units in the first half of 2023, marking a year-on-year increase of 37.3% and a penetration rate of 32.4%[8]. - The second-hand car transaction volume in China was 6.9 million units, a year-on-year increase of 16.1%, with nearly 90% of transactions below RMB 150,000[9]. After-Sales and Service Performance - The after-sales service segment saw a gross profit increase of 25.9% to RMB 4,466.1 million compared to RMB 3,547.4 million in the previous year[3]. - The after-sales service market saw a 9.0% year-on-year increase in service visits, with after-sales revenue growing by 13.0%[10]. - The company achieved a 11.7% year-on-year increase in after-sales business visits, with maintenance and repair revenue growing by 11.1%[10]. - The company plans to enhance operational integration and efficiency across its service centers to better serve customers[6]. Strategic Goals and Future Plans - The company aims to establish 100 Zhongsheng brand maintenance service centers as part of its strategic goals[6]. - The target is to double the revenue from accident vehicle repair services and achieve a 1.0 ratio of used car to new car sales[6]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer service[22]. - The company plans to increase the density of its core regions and brands through new store openings and acquisitions, while expanding its used car and after-sales service businesses[95]. Financial Position and Assets - As of June 30, 2023, total assets amounted to RMB 63,294,593 thousand, an increase from RMB 62,937,725 thousand as of December 31, 2022, reflecting a growth of approximately 0.57%[16]. - Current assets reached RMB 53,962,862 thousand, up from RMB 46,832,828 thousand, indicating a significant increase of about 15.4%[16]. - Cash and cash equivalents increased to RMB 16,352,611 thousand from RMB 11,679,029 thousand, representing an increase of approximately 39.5%[16]. - Total liabilities rose to RMB 55,029,068 thousand, compared to RMB 46,569,984 thousand, marking an increase of around 18.2%[17]. - The company reported a net current asset of RMB 18,271,224 thousand, up from RMB 17,941,134 thousand, showing an increase of approximately 1.84%[16]. Shareholder and Equity Information - The company did not recommend any interim dividend for the six months ended June 30, 2023[41]. - The company’s total equity was RMB 43,957,163 thousand, slightly lower than RMB 44,064,425 thousand, a decrease of about 0.24%[17]. - The company’s long-term portion of bank loans and other borrowings was RMB 8,973,176 thousand as of June 30, 2023, compared to RMB 7,185,161 thousand at the end of 2022, indicating an increase of about 24.9%[48]. Acquisitions and Investments - The company acquired 100% equity of Beijing Antong Lianfeng Automotive Sales Service Co., Ltd. for a total consideration of RMB 28,370,000 on May 1, 2023[58]. - The acquisition contributed revenue of RMB 63,322,000 and profit of RMB 3,842,396 for the six months ended June 30, 2023[61]. - The fair value of identifiable net assets from the acquisition amounted to RMB 21,777,000, with goodwill generated of RMB 6,593,000[63]. Compliance and Governance - The company has complied with the corporate governance code and the standard code for securities transactions by directors during the reporting period[102]. - The audit committee reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2023, and confirmed compliance with accounting standards[105].

Company Performance and Growth - The company has successfully navigated uncertainties in 2022, achieving a customer base exceeding 7 million, with rapid growth ongoing[9]. - The company secured approximately RMB 67 billion in automotive financing and facilitated over 2 million insurance contracts, becoming a key partner for major banks and insurance companies in China[9]. - The company is the second-largest dealer for Mercedes-Benz and the largest for Lexus in terms of new car sales in China, with a total of around 140,000 used cars sold during the year[9]. - The group sold 520,396 new cars in 2022, with luxury brand sales reaching 307,434 units, a year-on-year increase of 2.7%, accounting for 59.1% of total new car sales[21]. - Sales of new energy vehicles increased by 69.4% year-on-year, attributed to the strong dealership network for core brand electric models[21]. - The group sold 140,121 used cars, with retail sales accounting for 25.3% or 35,450 units[21]. Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 179,857.0 million, an increase of RMB 4,753.9 million or 2.7% compared to the previous year[32]. - New car sales revenue was RMB 145,419.9 million, growing by RMB 2,954.2 million or 2.1% year-over-year[32]. - The gross profit for the year was RMB 16,031.6 million, a decrease of RMB 2,438.0 million or 13.2% compared to the previous year[36]. - The gross profit margin for the year was 8.9%, down from 10.5% in the previous year[37]. - Operating profit for the year was RMB 10,168.8 million, a decline of RMB 2,448.4 million or 19.4% year-over-year[39]. - Net profit for the year was RMB 6,614.4 million, down RMB 1,792.9 million or 21.3% compared to the previous year[40]. Market Trends and Strategy - The company is focusing on customer and business partner unmet needs to drive long-term growth, shifting from macro-driven new car sales to a more customer-centric approach[12]. - The company has launched multiple OEM brand showrooms in urban shopping areas and its first branded used car market, aligning with changing customer behaviors[10]. - The company has a strategic focus on high-quality brand portfolios across 32 major cities, with over half of its stores located in economically developed areas[9]. - The used car market in China experienced a transaction volume of 9.52 million units in 2022, a decline of 10.1% year-on-year, indicating a growing but challenging market[17]. - The ratio of used car sales to new car sales in China was 0.7 in 2022, compared to 2.5 in the more mature U.S. market, indicating significant growth potential[17]. Operational Efficiency and Management - The company has implemented a detailed management system to maintain operational flexibility and efficiency amid challenging market conditions[10]. - The group established eight centralized used car centers, with an average turnover time of 12.4 days for used cars[25]. - The centralized procurement platform managed a total procurement amount of RMB 3 billion, covering various automotive parts and capital expenditures[28]. - The average monthly after-sales revenue per employee increased by 25%, while monthly expenses decreased by RMB 18 million, a year-on-year decline of 16%[28]. - The group plans to continue enhancing operational efficiency and adapting to changing customer demands, focusing on market consolidation opportunities[29]. Employee and Workforce Management - The total number of employees decreased from 39,668 in 2021 to 32,943 in 2022, indicating a focus on optimizing human resources[54]. - The group has received the "2022 China Best Employer" award, highlighting its commitment to employee development and retention strategies[90][92]. - The group has implemented strict data privacy policies, ensuring that only a limited number of employees have access to customer data, and conducts annual third-party audits of its information security policies[86]. - Employee turnover for the year reached 15,508, an increase of 8,587 from the previous year, resulting in a turnover rate of 32.01%[96]. - The company emphasizes the importance of employee retention and offers competitive compensation packages to attract high-quality talent[54]. Environmental, Social, and Governance (ESG) Initiatives - The group aims to enhance its ESG governance and has established an ESG committee to oversee its sustainability strategies and initiatives[67]. - The company will continue to actively undertake corporate social responsibility and achieve sustainable development, supporting low-carbon development and energy conservation initiatives[68]. - The company has implemented a risk management system for environmental, social, and governance (ESG) risks, with a dedicated team for risk assessment[70]. - The company has established various ESG working groups, including employee care, energy conservation, and supply chain management, to oversee and implement ESG initiatives[71]. - The company has established a "Climate Change Policy" to mitigate the impact of climate change on its operations and aims to integrate climate change considerations into its risk management system[125]. Corporate Governance - The company has adhered to the corporate governance code principles throughout the fiscal year ending December 31, 2022[155]. - The board consists of executive directors, non-executive directors, and independent non-executive directors, ensuring a balance of skills, experience, and diversity[159]. - The company has established an independence assessment mechanism for the board to ensure strong independence and effective decision-making[166]. - The company has implemented a policy for disclosing inside information and planning shareholder communications to fulfill governance responsibilities[194]. - The board aims to maintain a balanced diversity perspective related to business growth and ensure appropriate recruitment processes at all levels[182].

Sales Performance - For the year ended December 31, 2022, the new car sales volume was 520,396 units, a decrease of 1.5% compared to the previous year[2]. - Luxury brand new car sales reached 307,434 units, an increase of 2.7% year-on-year[2]. - The used car transaction volume was 140,121 units, an increase of 0.5% year-on-year[2]. - The group sold 140,121 used cars, with retail sales accounting for 25.3% or 35,450 units[11]. - Automotive sales increased by 69.4% year-on-year, attributed to the strong dealership network of the group's core brand electric vehicles[11]. Financial Performance - Revenue for the year was RMB 179,857.0 million, representing a growth of 2.7% compared to the previous year[2]. - The profit attributable to equity holders for the year was RMB 6,667.6 million, a decrease of 19.9% year-on-year[3]. - The basic earnings per share for the year was RMB 2.76, down from RMB 3.56 in the previous year[3]. - The group's operating profit for the year was RMB 10,168,839, down from RMB 12,617,281 the previous year[14]. - The company's net profit for the year ended December 31, 2022, was RMB 6,614,434, a decrease of 21.3% compared to RMB 8,407,330 in 2021[15]. Assets and Liabilities - The company's total assets less current liabilities amounted to RMB 62,769,034, an increase from RMB 57,093,165 in 2021[17]. - Current assets increased to RMB 46,832,828 from RMB 40,346,938, reflecting a growth of 16.3%[17]. - The company's total liabilities increased to RMB 18,651,474 from RMB 16,386,674, representing a rise of 13.8%[18]. - The net assets of the company reached RMB 44,117,560, up from RMB 40,706,491, indicating a growth of 10.5%[19]. - The company's inventory increased to RMB 15,237,427 from RMB 11,192,016, marking a significant rise of 36.3%[17]. Revenue Breakdown - Total revenue from customer contracts for 2022 was RMB 179,856,972 thousand, an increase from RMB 175,103,062 thousand in 2021, representing a growth of approximately 1.6%[27]. - The revenue from automobile sales was RMB 155,248,023 thousand in 2022, compared to RMB 150,598,453 thousand in 2021, indicating an increase of about 3.5%[27]. - Other income and gains for 2022 totaled RMB 4,424,144 thousand, up from RMB 3,890,572 thousand in 2021, reflecting a growth of approximately 13.7%[28]. Cost and Expenses - Employee benefits expenses for 2022 were RMB 5,492,475 thousand, a decrease from RMB 5,652,610 thousand in 2021, showing a reduction of about 2.8%[29]. - The cost of goods sold for 2022 was RMB 161,663,435 thousand, compared to RMB 154,664,762 thousand in 2021, which is an increase of approximately 4.5%[30]. - Depreciation and impairment of property, plant, and equipment for 2022 amounted to RMB 1,713,613 thousand, up from RMB 1,428,389 thousand in 2021, representing an increase of about 20%[30]. Cash Flow and Capital Expenditure - Cash flow from operating activities was RMB 8,784.8 million, primarily from operating profit before changes in working capital and tax payments[51]. - Cash used in investing activities was RMB 3,599.8 million for the year[52]. - Cash used in financing activities was RMB 4,526.8 million for the year[52]. - The total capital expenditure for the year ended December 31, 2022, was RMB 1,948.8 million, with no significant investments made during the same period[54]. Shareholder Information - The proposed final dividend is HKD 1.09 per share (approximately RMB 0.97), compared to HKD 0.84 per share in the previous year[42]. - The average number of ordinary shares issued during 2022 was 2,411,562,186, an increase from 2,340,870,937 in 2021[35]. - The company has a total of 11,000,000 unexercised share options as of December 31, 2022, representing approximately 0.46% of the issued share capital[67]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the year ended December 31, 2022[69]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance for the year ended December 31, 2022[70]. - The company has not entered into any related party transactions that require disclosure under the Listing Rules during the year ended December 31, 2022[68]. Future Outlook - The company plans to continue enhancing operational efficiency and adapting to changing customer demands, supported by its scale and management system[13]. - The company plans to expand its presence in the luxury and mid-to-high-end passenger car market through new store openings and appropriate acquisitions[62]. - Forward-looking statements regarding the group's business outlook, financial performance estimates, and development strategies are included, based on existing information[78].