光荣，属于每一个挺膺担当的奋斗者。这是对劳动的礼赞，更是对奋进的号召。 熊熊炉火前坚守，滚滚麦浪间耕耘，隆隆轰鸣中焊接……无数追梦人在劳动中积蓄力量、孕育希望。一 步一脚印，铿锵的奋进足音，汇聚成劳动最光荣的时代强音。 "大力弘扬劳模精神、劳动精神、工匠精神""在传统产业转型升级中攻坚克难，在新兴产业发展壮大中 开拓进取，在未来产业培育生长中大胆探索"，"五一"国际劳动节到来之际，习近平总书记对我国工人 阶级和广大劳动群众奋进新征程、建功新时代寄予殷切期望。 今年是"十四五"规划收官之年。时间的坐标，铭刻奋斗的价值。广大劳动者怀爱国之心、立报国之志、 增强国之能，用伟大劳动创造新的业绩。 弘扬劳模精神 一双双手套见证默默奉献 车间田间，大街小巷，各种生产场景中，总有一个个身影在坚持，总有一双双手套沾了汗、带了泥甚至 破了洞，见证多少辛勤、多少奉献。 "劳动模范和先进工作者是人民的楷模、国家的栋梁。"在庆祝中华全国总工会成立100周年暨全国劳动 模范和先进工作者表彰大会上，习近平总书记这样称赞。 荣光不改初心，人民大会堂接受表彰后，焊工吴泽平回到岗位。 他摘下一双破了的手套：焊渣溅落成星星点点的烫痕，焊枪磨得虎 ...

Financial Performance - In 2024, the company reported revenues of RMB 20,746,774 thousand, a decrease of 14.5% compared to 2023[9]. - The company experienced a net loss of RMB 1,529,086 thousand in 2024, which is an increase of 86.3% from the previous year's loss of RMB 820,480 thousand[9]. - The group's revenue for the year ended December 31, 2024, was approximately RMB 20,746.8 million, a decrease of about 14.0% compared to RMB 24,132.0 million in 2023, primarily due to a decline in new car sales volume and prices[39]. - Revenue from new car sales for 2024 was approximately RMB 15,978.6 million, down about 21.0% from RMB 20,224.3 million in 2023, accounting for 77.0% of total revenue[39]. - The group's gross profit for the year was approximately RMB 779.1 million, a decrease of about 22.8% from RMB 1,008.6 million in 2023, with a gross margin of 3.8%[43]. - Operating loss for the year was approximately RMB 549.0 million, compared to an operating profit of RMB 168.2 million in 2023, mainly due to declines in new car sales and gross margin[47]. - The group's net loss for the year was approximately RMB 1,529.1 million, an increase from a loss of RMB 820.5 million in 2023, attributed to decreased new car sales revenue and gross margin[51]. - The company reported a loss of RMB 2,328 million for the year ending December 31, 2024, compared to a loss of RMB 1,883 million for the previous year[149]. Market Performance - In 2024, the Chinese automobile market produced 31.28 million vehicles and sold 31.44 million vehicles, representing year-on-year growth of 3.7% and 4.5%, respectively[13]. - The market share of domestic brands in China increased to 65.1% in 2024, driven by the rise of new energy vehicles[13]. - The group achieved new car sales of 55,054 units in 2024, with mid-to-high-end brand sales accounting for 46,756 units, and new energy vehicle sales reaching approximately 5,759 units, representing about 10.5% of total sales, both in terms of units and percentage showing improvement compared to the previous year[21]. - The Chinese used car market saw a total transaction volume of approximately 19.614 million vehicles in 2024, reflecting a year-on-year growth of about 6.5%[24]. - The total sales volume of used cars for the group in 2024 is projected to be 14,000 units, representing a year-on-year growth of approximately 24%, with retail sales reaching 1,817 units, up about 36%[26]. - In Q4 2024, the retail volume of used cars showed exceptional performance, with a year-on-year increase of over 120%[26]. Operational Strategy - The company aims to enhance its operational quality and accelerate transformation, focusing on high-quality development[13]. - The company is actively expanding its after-sales and used car businesses, as well as accelerating its transition to new energy vehicles[12]. - The group enhanced its after-sales service operations, resulting in an effective customer ratio increase of 3.2% and achieving after-sales service revenue of approximately RMB 3,194.6 million, with a total of 1,102,139 after-sales service instances[22][23]. - The group implemented a procurement management model that led to a 20% reduction in comprehensive costs for centralized procurement products[18]. - The group actively expanded its international business and diversified its operations into new energy and self-owned brands, aiming to alleviate financial pressure and optimize resource allocation[15]. - The group is committed to optimizing its brand structure and implementing lean management to improve efficiency[12]. - The company plans to enhance its operational quality in the 4S dealership business and improve sales gross margin by optimizing product mix and sales strategies[63]. - The company aims to expand its after-sales service business and enhance the scale of used car and insurance agency markets to create new profit growth points[64]. - The company is committed to accelerating its transformation towards new energy and expanding into overseas markets for future growth[64]. Corporate Governance - The company has pledged to uphold high standards of corporate governance to protect shareholder interests and enhance corporate value[66]. - The board of directors experienced significant changes, with multiple appointments and resignations occurring on April 10, 2024, including the appointment of Mr. Huang Junfeng as chairman and Mr. Chen Hong as CEO[70]. - The company faced a compliance issue with listing rules, having fewer than three independent non-executive directors from October 8, 2024, to December 23, 2024, due to the resignation of Dr. Huang Tianyou[74]. - The company has taken necessary measures to comply with listing rules regarding the composition of the board and committees, achieving full compliance as of December 24, 2024[75]. - The company has established a board committee to oversee the daily management and operations, with the senior management responsible for significant transactions requiring board approval[79]. - The independent non-executive directors have confirmed their independence annually, ensuring compliance with the independence standards set forth in the listing rules[71]. - The company has a structured process for the appointment and re-election of directors, with independent non-executive directors serving a term of three years[81]. - The company has arranged directors and officers liability insurance for its directors and executives to cover legal actions arising from company activities[80]. - The chairman and CEO roles are held by different individuals, ensuring a separation of responsibilities in leadership and daily operations[77]. - The company’s nomination committee is responsible for evaluating the board's structure, size, and diversity, as well as monitoring the appointment and succession planning of directors[81]. - The board has adopted a diversity policy, ensuring a balanced mix of skills, experience, and perspectives, achieving its diversity goals without setting further measurable targets[84]. - The board's independence assessment mechanism has been implemented and confirmed to meet the guidelines, ensuring strong independent judgment to protect shareholder interests[87]. - New directors receive comprehensive onboarding training to understand the company's operations and regulatory responsibilities, with several directors receiving training in 2024[88]. - The board has maintained high attendance rates at meetings, with the chairman attending 100% of board meetings and shareholder meetings in 2024[91]. - The company emphasizes the importance of effective communication with shareholders and investors, utilizing various channels including annual reports, interim reports, and investor relations activities[113]. - The company has established a disclosure policy to ensure the handling of confidential information and compliance with insider trading regulations[110]. - The board believes that the current corporate governance system is overall effective and sufficient, following an annual review conducted by the audit committee[111]. Shareholder Relations - The company is committed to maintaining high levels of investor relations through activities such as conference calls, one-on-one meetings, and roadshows[113]. - The company has a structured process for shareholders to propose business transactions at special general meetings, requiring a minimum of 10% of voting shares to initiate[116]. - The company’s articles of association have not undergone any changes during the reporting period, with the latest version available on the company and stock exchange websites[120]. - The company has not established specific goals for enhancing gender diversity among employees, considering the current representation adequate for operational needs[86]. - The board will consider various factors such as operating performance, cash flow, and financial condition when declaring dividends, although no specific payout ratio has been predetermined[122]. - The board has the discretion to review and update the dividend policy as deemed appropriate and necessary[122]. - The company did not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year[142]. - The company has not proposed an interim dividend for the six months ending June 30, 2024, similar to the previous year[150]. Employee and Management - The company employed 5,672 employees in China as of December 31, 2024, down from 6,669 employees on December 31, 2023[61]. - Employee costs for the year ended December 31, 2024, were approximately RMB 802.3 million, compared to RMB 955.8 million in 2023[61]. - The company has a strong management team with over 20 years of experience in automotive dealership operations and over 30 years in corporate integration and operations[123][124]. - The new CEO, who has been in the role since March 2022, has extensive experience in corporate governance and investment mergers and acquisitions[125]. - The company’s independent non-executive director has a distinguished background in public service and has received multiple awards for contributions to technology and community service[127][128]. - The board includes members with significant experience in legal compliance and risk management, enhancing the company's governance framework[126]. - The management team is well-equipped to navigate market challenges and pursue strategic growth opportunities[123][125]. Related Transactions - The company has established a framework for ongoing related transactions, ensuring adherence to regulatory requirements and fair business practices[163]. - The independent auditor has reviewed the continuing connected transactions and confirmed compliance with the relevant listing rules[168]. - The company has entered into a service subcontracting agreement with Xiamen Gaoxin Yundao Technology Co., Ltd., with a maximum annual limit of RMB 55 million for the years ending December 31, 2023, 2024, and 2025, and an actual amount incurred of RMB 43.9 million for the year ending December 31, 2024[164]. - A financial services agreement was established with Xiamen Guomao Holdings Group Financial Co., Ltd., with a maximum annual deposit service limit of RMB 50 million and other financial service fees capped at RMB 10 million for the years ending December 31, 2023, 2024, and 2025, with actual transactions amounting to RMB 0.2 million for the year ending December 31, 2024[166]. - The company sold a 5.77% stake in Dongfeng Logistics for RMB 331,496,300, reducing its ownership from 14.43% to 8.66%[171]. - An engineering entrustment agreement was signed with Shandong Xinda IoT Application Technology Co., Ltd., with a total cost not exceeding RMB 9 million for upgrading and installing smart technology and weak current systems[173]. Share Incentive Plan - The company has adopted a restricted share incentive plan on June 12, 2020, which is effective for ten years, with approximately five years remaining as of the report date[175]. - A total of 47,100,000 shares have been granted under the share incentive plan since its adoption, representing about 1.92% of the issued shares on the adoption date[178]. - The maximum number of shares that can be granted to individual selected participants is capped at 1% of the issued shares on the adoption date, equating to 24,542,204 shares[177]. - As of December 31, 2024, the total number of shares available for issuance under the share incentive plan is 91,931,021 shares, which is approximately 3.28% of the issued shares at that date[177]. - The market value of the 47,100,000 granted shares is approximately HKD 55,483,800, while the par value is HKD 4,710,000[180]. - No grants were made under the share incentive plan during the year ending December 31, 2024[178]. - The company has appointed a trustee to manage the share incentive plan, ensuring that shares are held in trust for selected participants[176]. - The share incentive plan includes specific vesting conditions based on the tenure and performance of selected participants[182]. - The total number of shares available for grant under the plan increased from 90,391,021 shares at the beginning of 2024 to 91,931,021 shares by the end of the year[186]. - There are no reported interests or short positions in the company's shares or related securities by directors and key executives as of December 31, 2024[187]. - As of December 31, 2024, the total number of issued shares is 3,346,990,420[189]. - Xiamen Guotai Holdings Group Co., Ltd. holds 842,977,684 shares, representing 25.19% of the company's equity[188]. - The net proceeds from the subscription of new shares amount to approximately HKD 59.33 million, with a net subscription price of about HKD 0.124 per share[194]. - The subscription agreement involved the issuance of 479,888,000 new shares at a subscription price of HKD 0.125 per share, which is a discount of approximately 13.79% from the closing price on the agreement date[193]. - The funds raised from the subscription will be used entirely to repay bank loans, reflecting a 100% utilization rate[195]. - Xiamen Guotai Holdings Group Co., Ltd. is deemed to have an interest in 22,359,500 shares of Hong Kong Xinda Nuo Co., Ltd. due to its ownership of approximately 39.93% of Xiamen Xinda Co., Ltd.[189]. - The subscription shares represent approximately 16.74% of the existing issued share capital prior to completion and about 14.34% after the issuance[193]. - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the fiscal year ending December 31, 2024[196]. - The company has not entered into any agreements linked to equity other than the share incentive plan[192]. Risk Management - The board of directors confirmed the effectiveness of the risk management and internal control systems, which are reviewed at least annually to ensure they adequately manage risks associated with achieving business objectives[110].

为支持公司可持续发展，控股股东厦门国贸控股拟通过大规模注资的方式，助力公司进一步优化财务结 构，增强抗风险能力，以及寻求更多市场机遇。于2025年1月25日，公司与厦门国贸控股旗下信达汽车 香港有限公司（以下简称"信达香港"）订立认购协议，根据协议，信达汽车拟以总现金代价约10亿元认 购公司66.69亿股股份，认购价为每股0.15港元。本次大额认购显示了国资大股东对正通汽车的支持和对 未来发展的坚定信心，将有利于正通汽车补充流动资金、优化资产负债结构并减低财务成本，也可以促 进公司更为聚焦核心业务发展和扩展其他衍生和国际化业务。 2024年，公司积极应对市场变化，维持中高端品牌经销主业基盘，持续对弱店进行品牌转换，强化售后 业务和金融衍生业务提升，以及加快新能源品牌转型，推动汽车经销业务稳步提升。与多个新能源主机 厂建立联系，尤其是在投入较低且收益相对稳定的维修领域进行了持续布局，报告期内，新开业2家新 能源售后网点。同时，充分挖掘集团网络资源，加快推进盈利能力欠佳品牌转换及物业盘活出租等工 作，年内已累计完成8家门店的业务转型和优化，区域涵盖上海、广州、武汉、南京、佛山、东莞、湛 江等多个城市。 公司持续深 ...

集团累计实现汽车售后服务110.21万台次，实现售后服务收入约31.95亿元。 智通财经APP讯，正通汽车(01728)发布截至2024年12月31日止年度业绩，该集团期内取得收益207.47亿 元(人民币，下同)，同比减少14.03%;公司普通股股东应占亏损17.09亿元，同比扩大91.75%;每股基本亏 损56分。 截至2024年12月31日止年度，集团实现新车销售合共55054台，其中中高端品牌汽车销售46756台。新能 源新车型销量约5759台，约占本年度总销量的10.5%，台数和占比均较去年同期有进一步提升。 随着行业变革趋势逐步明晰，集团果断汰换弱势品牌。截至2024年12月31日止，集团在全国15个省、直 辖市的36个城市拥有93家运营网点，同时还有已获授权及筹建的经销店网点5家，分别来自1家豪华品牌 和4家新能源自主品牌，包括1家路虎4S店、1家AITO问界4S店、2家奇瑞iCAR 4S店以及1家捷途4S店。 2024年，集团荣登"2024中国汽车经销商集团百强排行榜"18名，较2023年提升4位。此外，集团成功入 围"2024中国汽车百强经销商集团 — 新能源分榜单"，并位列"2024中国汽 ...

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately RMB 20,746.8 million, a decrease of 14.0% compared to RMB 24,132.0 million in 2023[3]. - The overall gross profit was approximately RMB 779.1 million, down 22.8% from RMB 1,008.6 million in 2023, with a gross profit margin of 3.8%, a decline of 0.4 percentage points year-on-year[3]. - The operating loss for the year was approximately RMB 549.0 million, compared to an operating profit of approximately RMB 168.2 million in 2023[3]. - The net loss for the year was approximately RMB 1,529.1 million, an increase of about 86.4% from RMB 820.5 million in 2023[3]. - The company reported a basic and diluted loss per share of RMB 56.0, compared to RMB 31.9 in 2023[4]. - Revenue from the sale of passenger vehicles decreased to RMB 15,978,627,000 in 2024 from RMB 20,224,295,000 in 2023, representing a decline of approximately 21.1%[18]. - Total revenue for the year was RMB 20,746,774,000, down from RMB 24,131,975,000 in the previous year, indicating a decrease of about 13.5%[18]. - The group reported a net loss of RMB 1,529 million for the year ending December 31, 2024, compared to a net loss attributable to equity shareholders of RMB 357 million as of December 31, 2023[13]. Assets and Liabilities - Total assets less current liabilities amounted to RMB 5,564.0 million, down from RMB 6,870.4 million in 2023[8]. - Non-current liabilities decreased to RMB 4,494.3 million from RMB 5,583.3 million in 2023[8]. - The company's cash and cash equivalents were RMB 573.1 million, down from RMB 744.9 million in 2023[7]. - The group's current liabilities net amount was RMB 8,333 million as of December 31, 2024, compared to RMB 8,218 million as of December 31, 2023[13]. - The group’s total non-current assets added in 2024 amount to RMB 710,535, down from RMB 1,787,140 in 2023[34]. - The total reportable segment assets for 2024 are RMB 17,922,425, a decrease from RMB 18,262,176 in 2023[36]. - The total amount of notes payable was RMB 3,409,756,000 as of December 31, 2024, compared to RMB 3,609,422,000 in 2023, reflecting a decrease of about 5.5%[64]. Operational Efficiency and Strategy - The company is actively responding to market changes by enhancing operational efficiency and accelerating the transformation towards new energy brands[2]. - The company aims to improve its used car business model and promote international business development[2]. - The company has optimized its procurement management model, resulting in a 20% reduction in the comprehensive cost of collective procurement products[94]. - The company is actively adjusting its store layout and inventory structure to respond to market challenges and price wars[95]. - The company has established a cross-regional resource coordination management mechanism to accelerate turnover and reduce inventory depth[95]. - The group plans to continue strengthening its strategic partnerships with major manufacturers, particularly in the new energy sector, to enhance brand structure and profitability[104]. Employee and Cost Management - Employee costs decreased from RMB 955,750,000 in 2023 to RMB 802,334,000 in 2024, representing a reduction of approximately 16.0%[23]. - The group employed 5,672 employees as of December 31, 2024, down from 6,669 employees on December 31, 2023[127]. - The group’s current liabilities as of December 31, 2024, were approximately RMB 23,654.2 million, an increase of about RMB 1,009.8 million from RMB 22,644.4 million on December 31, 2023, primarily due to an increase in short-term loans and borrowings[118]. Financial Instruments and Investments - The group recognized an impairment loss of RMB 32,095,000 for goodwill and RMB 76,161,000 for intangible assets in 2024, with no impairment recognized in 2023[41]. - The company’s borrowing costs were capitalized at an annual rate of 5.2%–5.8% for 2023, compared to 3.7%–5.0% previously[22]. - The group received dividend income of RMB 20,280,000 from Dongfeng Logistics in 2024, down from RMB 39,538,000 in 2023, a decrease of approximately 48.9%[61]. - The group redeemed part of its financial products, recovering RMB 2,976,000 in 2024, an increase from RMB 850,000 in 2023[59]. Market Performance and Sales - The group achieved total new car sales of 55,054 units for the year ending December 31, 2024, with mid-to-high-end brand sales accounting for 46,756 units[97]. - New energy vehicle sales reached approximately 5,759 units, representing 10.5% of total sales, showing an increase in both volume and percentage compared to the previous year[97]. - The group sold 14,000 used cars in 2024, marking a year-on-year increase of approximately 24%, with retail sales up 36%[100]. - The group organized multiple marketing activities throughout the year, resulting in a 60% increase in sales leads and a 63% increase in new media-driven transactions[96]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the group's annual performance for the year ending December 31, 2024[140]. - The financial statements for the year ending December 31, 2024, have been matched with the amounts in the audited consolidated financial statements by the auditors, KPMG[141]. - The company has complied with the corporate governance code as stipulated in the listing rules for the year ending December 31, 2024[139]. - The company has taken necessary measures to comply with listing rules regarding the composition of the board and committees within three months[139].

CHINA ZHENGTONG AUTO SERVICES HOLDINGS LIMITED 中國正通汽車服務控股有限公司 (Incorporated under the laws of the Cayman Islands with limited liability) INTERIM REPORT 中期報告 (根據開曼群島法律註冊成立的有限公司) Stock Code 股份代號 : 1728 鳥 類先的 綜合 股榜 陪 目錄 2 管理層討論及分析 12 其他資料 18 獨立審閱報告 19 綜合損益表 20 綜合損益及其他全面收入表 21 綜合財務狀況表 22 綜合權益變動表 24 簡明綜合現金流量表 25 未經審計中期財務報告附註 54 公司資料 管理層討論及分析 業務回顧 2024年中報 2 2024年上半年，國內汽車市場競爭進一步加劇，新能源新模式帶來的價格衝擊和市場情緒波動等因素，對傳統燃油汽車 經銷商帶來了巨大挑戰。雖然受益於國家及各級地方政府以舊換新等鼓勵政策的陸續落地，銷量有所穩定，但新車銷售 利潤率仍處於歷史低位。面臨行業轉型期的震盪與困境，在國資大股東的堅定支持和全力保障下，本集團專注於發 ...

Financial Performance - Revenue decreased by approximately 19.8% to about RMB 9,876 million, primarily due to declines in new car sales volume and selling prices [3]. - Overall gross profit decreased by approximately 71.9% to about RMB 177 million, with a gross profit margin decline of 3.3 percentage points to 1.8% [3]. - The net loss for the period was approximately RMB 635 million, compared to a net loss of approximately RMB 386 million in the same period of 2023 [3]. - Basic loss per share was approximately RMB 25, compared to RMB 14 in the same period of 2023 [3]. - Total comprehensive loss for the period was RMB 641.85 million, compared to RMB 393.89 million in the same period of 2023 [5]. - Total revenue for the six months ended June 30, 2024, was RMB 9,875,622,000, a decrease of 19.7% compared to RMB 12,309,565,000 in the same period of 2023 [12]. - Revenue from passenger vehicle sales decreased to RMB 7,657,625,000, down 27.3% from RMB 10,580,807,000 in the same period of 2023 [12]. - The group reported a net loss of approximately RMB 635 million for the six months ended June 30, 2024, compared to a loss of RMB 386 million in the same period of 2023 [75]. Cash Flow and Liquidity - Net cash inflow from operating activities was approximately RMB 147 million, compared to a net outflow of approximately RMB 446 million in the same period last year [3]. - Cash and cash equivalents as of June 30, 2024, were approximately RMB 470 million, a decrease of about RMB 275 million from RMB 745 million as of December 31, 2023 [77]. - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately RMB 5,451 million, a decrease of about RMB 169 million from RMB 5,620 million as of December 31, 2023 [81]. Operational Adjustments - The company plans to maintain its focus on luxury and ultra-luxury brand car sales while implementing operational adjustments and cost reduction measures [2]. - The company plans to enhance operational efficiency and reduce leverage through various methods [82]. - The company is focusing on the development of luxury and ultra-luxury brand automotive sales while optimizing operational quality and innovating marketing strategies [51]. Employee and Costs - Employee costs totaled RMB 367,388 thousand for the six months ended June 30, 2024, compared to RMB 414,472 thousand in the same period of 2023, reflecting a decrease of about 11.4% [15]. - Employee costs for the first half of 2024 were approximately RMB 396 million, compared to RMB 441 million for the same period in 2023 [85]. - The company employed 6,555 employees in China as of June 30, 2024, a decrease from 6,669 employees as of December 31, 2023 [85]. Inventory and Sales - Inventory costs were RMB 9,472,953 thousand for the six months ended June 30, 2024, down from RMB 11,419,654 thousand in the same period of 2023, indicating a decline of approximately 17.0% [17]. - The total inventory as of June 30, 2024, was RMB 3,833,371,000, compared to RMB 3,771,902,000 as of December 31, 2023 [32]. - The average inventory turnover days for the first half of 2024 was 50.4 days, an increase of 1.0 day compared to 49.4 days in the first half of 2023 [79]. - The company's new car sales totaled 26,615 units, representing a year-on-year decline of 12.9%, including 22,679 units of luxury and ultra-luxury brands, which decreased by 13.4% [54]. - The used car market in China saw a total transaction of 9.383 million vehicles in the first half of 2024, an increase of 610,000 vehicles year-on-year, representing a growth of 7% with a total transaction value of RMB 625.212 billion [56]. - The company’s used car sales volume increased by approximately 11% year-on-year as of June 30, 2024 [57]. Revenue Streams - Revenue from after-sales services increased to RMB 1,698,980,000, up 19.1% from RMB 1,425,687,000 in the same period of 2023 [12]. - The group recognized RMB 325,635,000 in revenue from providing mortgage loan services, which was previously not included in revenue reporting [12]. - The automotive finance revenue of the company grew by 108.4% year-on-year as of June 30, 2024 [58]. Financial Instruments and Investments - The company issued perpetual bonds totaling RMB 200 million with an initial annual interest rate of 8.5% on February 28, 2023 [41]. - The company issued two additional perpetual bonds of RMB 100 million each on April 14 and June 12, 2023, with initial interest rates of 8.5% and 8.0% respectively, totaling RMB 200 million [42]. - The company issued perpetual bonds of RMB 350 million and RMB 150 million on November 11 and December 26, 2023, with initial interest rates of 7.2% and 7.0% respectively, totaling RMB 500 million [44]. Legal and Compliance - The company has initiated appeals regarding the first-instance judgment related to equity investment obligations, with ongoing legal proceedings [38]. - The company has not made any provisions for potential liabilities as of June 30, 2024, based on legal opinions and assessments of the situation [48]. Future Outlook - The group expects to continue its operations for at least the next 12 months based on cash flow forecasts and financial support from Xiamen International Trade Holdings Group [10]. - The company is actively exploring opportunities in emerging businesses such as new energy vehicle distribution and after-sales services [87].

Financial Performance - The total comprehensive income for the year ended December 31, 2023, was RMB (824,118) thousand, compared to RMB (318,044) thousand for the year ended December 31, 2022, indicating a significant increase in losses[33]. - The net loss attributable to ordinary shareholders for the year was RMB (894,628) thousand, compared to RMB (316,908) thousand in the previous year, highlighting the challenges faced[33]. - The company reported a significant increase in reserves, moving from RMB (41,814) thousand in 2022 to RMB (895,485) thousand in 2023, indicating a turnaround in reserve management[66]. - The company reported a loss of RMB 1,883 million for the year ending December 31, 2023, compared to a loss of RMB 1,421 million for the previous year[144]. - The company does not recommend a final dividend for the year 2023, consistent with the previous year[144]. - The company will not declare an interim dividend for the six months ending June 30, 2023, similar to the previous year[145]. Revenue and Growth - The company reported a total revenue growth rate of X% for the fiscal year, with specific segments contributing to this growth[16]. - For the fiscal year ending December 31, 2023, total revenue reached RMB 246,394 thousand, an increase from RMB 235,203 thousand in the previous year[37]. - Future guidance indicates a projected revenue growth of approximately 10% for the upcoming fiscal year[37]. - The company plans to expand its market presence through new product development and strategic acquisitions in the automotive service sector[16]. - The company plans to expand its market presence and invest in new product development to drive future growth[37]. Assets and Liabilities - The total assets as of December 31, 2023, were RMB 8,392,179 thousand, reflecting an increase from RMB 8,250,000 thousand in the previous year[37]. - The company’s equity attributable to shareholders was RMB 1,287,060 thousand, up from RMB 1,224,444 thousand in the previous year[37]. - Non-current liabilities decreased from RMB 8,596,839 thousand in 2022 to RMB 5,583,349 thousand in 2023, a reduction of approximately 35.5%[66]. - The company’s borrowings decreased from RMB 6,439,857 thousand in 2022 to RMB 3,488,141 thousand in 2023, a decline of approximately 45.8%[66]. - The company’s total liabilities have shown a consistent downward trend, reflecting improved financial health and management efficiency[66]. Audit and Compliance - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[13]. - The independent auditor's report confirmed that the financial statements present a true and fair view of the company's financial position as of December 31, 2023[24]. - The independent non-executive directors reviewed the related party transactions and confirmed they are part of the group's ordinary business and conducted on normal commercial terms[100]. - The company has appointed KPMG as an independent auditor to report on the related party transactions for the year ending December 31, 2023[99]. - All independent non-executive directors have confirmed their independence according to the listing rules[126]. Sustainability and Efficiency - The company aims to continue its sustainability development strategy, promoting environmental protection and resource recycling in its operations[8]. - The company is committed to enhancing its operational efficiency and reducing energy consumption through green office initiatives[8]. - The company is focusing on enhancing its technology capabilities to improve operational efficiency and customer experience[37]. Related Party Transactions - The group has ongoing related party transactions that require compliance with the listing rules, specifically under Chapter 14A[127]. - Wuhan Zhengtong signed a service subcontracting agreement with Xiamen Gaoxin Yundao Technology, with a total annual cap of RMB 55 million for the years ending December 31, 2023, 2024, and 2025, and an actual amount incurred of RMB 35.7 million for the year ending December 31, 2023[128]. Governance and Management - The board of directors has undergone changes, with Mr. Wang Mingcheng resigning as chairman on April 10, 2024, and Mr. Huang Junfeng appointed as the new chairman[118]. - The company has no significant contracts or agreements with current directors that could be terminated without compensation within one year[120]. - The company’s board of directors underwent changes, with new independent non-executive directors appointed effective February 7, 2024[149]. Financial Policies and Provisions - The company measures expected credit losses based on the entire expected life of financial instruments, with specific assessments for significant increases in credit risk since initial recognition[177]. - The company has established provisions for expected credit losses that are higher than the carrying value of guarantees in specific debtor default scenarios[166]. - The company will write off financial assets or receivables when it determines that the debtor has no assets or sufficient cash flow to repay the amount to be written off[163]. - The company has a policy to recognize any changes in expected credit loss amounts in profit or loss, reflecting changes in credit risk since initial recognition[180].

Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately RMB 24,132 million, an increase of 7% compared to RMB 22,607 million in 2022[9]. - The overall gross profit was approximately RMB 1,009 million, a decrease of about 36% from RMB 1,587 million in 2022, resulting in a gross profit margin of approximately 4%, down 3 percentage points from 7% in 2022[9]. - Operating profit for the year was approximately RMB 168 million, a decline of about RMB 666 million compared to RMB 834 million in 2022[10]. - The net loss for the year was approximately RMB 820 million, an increase of about 176% from RMB 297 million in 2022[10]. - Revenue from passenger car sales increased to RMB 20,224,295 thousand in 2023, up from RMB 18,844,892 thousand in 2022, representing a growth of approximately 7.3%[24]. - The group reported a net loss of RMB 820 million for the year ended December 31, 2023, with current liabilities totaling RMB 8,218 million[21]. - The group recorded a basic loss per share of RMB (31.9) cents for the year ended December 31, 2023, compared to RMB (10.9) cents in 2022, indicating a worsening in performance[50]. - The company reported a pre-tax loss of RMB 886,600,000 for the year ended December 31, 2023, compared to a loss of RMB 130,342,000 in 2022, indicating a significant increase in losses[68]. - The basic loss per share for the year ended December 31, 2023, was RMB 890,990,000, compared to RMB 296,285,000 for the year ended December 31, 2022, reflecting a worsening financial performance[71]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 15,088 million, compared to RMB 13,902 million as of December 31, 2022[5]. - Current liabilities increased to RMB 22,644 million from RMB 18,911 million in the previous year[6]. - The company's equity attributable to shareholders increased to RMB 361 million from RMB 193 million in 2022[6]. - The group's current liabilities as of December 31, 2023, were approximately RMB 22,644 million, an increase of about RMB 3,733 million from RMB 18,911 million as of December 31, 2022, primarily due to an increase in short-term borrowings[136]. - The total liabilities as of December 31, 2023, were RMB 91,209,000, reflecting the financial position prior to losing control of Shanghai Yige[84]. - The carrying amount of inventory pledged as collateral for loans was RMB 1,212,183,000 as of December 31, 2023, up from RMB 1,121,577,000 in 2022[89]. - As of December 31, 2023, pledged assets amounted to approximately RMB 9,468 million, an increase from RMB 8,003 million in 2022, primarily due to increased pledged bank deposits[144]. Cash Flow and Financing - The group expects to receive financial support from Xiamen International Trade Group for at least the next 12 months, ensuring sufficient funds for ongoing operations[21]. - The total financing costs for loans and borrowings amounted to RMB 1,031,600 thousand, compared to RMB 957,414 thousand in the previous year, indicating an increase of approximately 7.7%[26]. - The net cash inflow from operating activities for the year ended December 31, 2023, was approximately RMB 37 million, compared to RMB 159 million in 2022[137]. - Cash and cash equivalents, along with bank deposits, were approximately RMB 5,620 million as of December 31, 2023, an increase of about RMB 929 million from RMB 4,691 million in 2022, primarily due to increased financing[142]. - The net debt ratio as of December 31, 2023, was approximately 1,198.1%, a significant decrease from 6,828.9% in 2022, indicating improved financial health[142]. Operational Highlights - The company continues to focus on mid-to-high-end brand sales and is actively seeking growth opportunities in the used car and automotive export sectors[9]. - The luxury car brand market share has steadily increased, with sales volume rising during the reporting period[9]. - The group plans to focus on mainstream luxury brands and optimize brand structure, aiming to improve operational quality and control vehicle sales prices[149]. - The group aims to expand into emerging businesses, including new energy brands and after-sales services, through acquisitions and partnerships[151]. - The group will accelerate its layout in the used car export business, leveraging national policies to promote overseas sales and cross-border e-commerce platforms[151]. Tax and Regulatory Compliance - The group’s income tax expense for the year was RMB 37,303 thousand, down from RMB 73,849 thousand in the previous year, representing a decrease of approximately 49.5%[45]. - The company has adopted the corporate governance code as per the listing rules and has complied with its provisions during the year[160]. - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[159]. Employee and Cost Management - Employee costs for continuing operations decreased to RMB 955,750 thousand in 2023 from RMB 985,319 thousand in 2022, a reduction of about 3.0%[26]. - The group employed 6,669 employees as of December 31, 2023, down from 7,181 employees in 2022, with employee costs for the year amounting to approximately RMB 956 million[146]. - Administrative expenses decreased by approximately 15.3% to RMB 1,085 million from RMB 1,281 million in 2022, attributed to cost control measures[172]. Inventory and Cost of Sales - The group reported a cost of inventory amounting to RMB 22,558,926 thousand for the year ended December 31, 2023, compared to RMB 20,454,963 thousand in 2022, reflecting an increase of approximately 10.2%[45]. - The group's cost of sales for the year ended December 31, 2023, was approximately RMB 23,123 million, an increase of about 10.0% compared to RMB 21,020 million in 2022[169]. - The group's inventory write-down for the year ended December 31, 2023, was RMB 48,764,000, compared to RMB 54,386,000 in 2022[120]. - As of December 31, 2023, total inventory was RMB 3,092,763,000, a decrease from RMB 3,403,685,000 in 2022, representing a decline of approximately 9.1%[89]. Future Projections - The group’s revenue growth rate projections for 2024 are estimated between 1.5% and 24.3%, indicating potential for significant revenue increase[55]. - The company’s revenue growth rate for the forecast period from 2024 to 2028 is based on historical performance and reflects the latest developments in customer demand in the automotive industry[76]. - The estimated growth rate for cash flows beyond the five-year forecast period is set at 3%, consistent with industry reports[74].

Financial Performance - For the six months ended June 30, 2023, the company recorded revenue of approximately RMB 12,310 million, representing a year-on-year increase of about 11.2%[5] - The company's gross profit for the same period was approximately RMB 630 million, reflecting a year-on-year decrease of about 33.6%[5] - The group recorded a net loss of approximately RMB 386 million for the first half of 2023, compared to a profit of RMB 6 million in the same period of 2022[43] - Operating profit for the first half of 2023 was approximately RMB 153 million, down from RMB 533 million in the same period of 2022, primarily due to a decline in new car sales gross margin[41] - The group's selling and distribution expenses for the first half of 2023 were approximately RMB 566 million, an increase of about 4.4% from RMB 542 million in the first half of 2022[45] - The company's net loss for the period was RMB 386,064 thousand, compared to a profit of RMB 5,675 thousand in the previous year[158] - Basic and diluted loss per share was RMB (14.4), compared to earnings of RMB 0.3 per share in 2022[164] Sales and Market Activity - New car sales totaled 30,560 units, a year-on-year increase of approximately 17.1%, including 26,187 units of luxury and ultra-luxury brands, which grew by about 22.1%[8] - New car sales revenue for the first half of 2023 was approximately RMB 10,581 million, up about 14.0% from RMB 9,281 million in the first half of 2022, accounting for 86.0% of total revenue[37] - The used car market in China saw a cumulative transaction volume of 8.7686 million units in the first half of 2023, a year-on-year increase of 15.6%[19] - The company plans to leverage existing store resources and favorable conditions to expand its used car export business significantly[78] Service and After-Sales - The company achieved 574,600 after-sales service transactions, generating after-sales service revenue of approximately RMB 1,426 million[17] - Service revenue for the first half of 2023 reached RMB 437.841 million, a significant increase of 97.5% compared to RMB 221.635 million in the same period of 2022[127] Operational Developments - The company completed upgrades for 9 core brand stores and showrooms to enhance customer purchasing experience[6] - The company continues to optimize its online platform, enhancing customer interaction and satisfaction through various digital initiatives[10] - The company has opened two new NIO maintenance centers in the first half of 2023, furthering its presence in the new energy sector[24] - The company has established a comprehensive logistics base that integrates parts logistics, vehicle logistics, and vehicle storage, expected to be operational soon[30] Corporate Governance and Risk Management - The company has optimized its governance structure by revising 31 internal regulations and abolishing 5, enhancing decision-making and supervision processes[32] - The company has focused on risk management by establishing a risk management system and emergency response mechanisms to address operational risks[34] - The company remains committed to high standards of corporate governance, ensuring compliance with the corporate governance code[97] Financial Position and Assets - As of June 30, 2023, the group's current assets were approximately RMB 14,610 million, an increase of about RMB 780 million from RMB 13,830 million as of December 31, 2022[49] - The group's cash and cash equivalents were approximately RMB 705 million as of June 30, 2023, a decrease of about RMB 29 million from RMB 734 million as of December 31, 2022[54] - The company's inventory was approximately RMB 3,581 million, a decrease of about RMB 483 million from RMB 4,064 million on December 31, 2022, primarily due to reduced new car inventory[58] - The total assets of the group as of June 30, 2023, amounted to RMB 3,580,553 thousand, down from RMB 4,064,270 thousand as of December 31, 2022, indicating a reduction of 11.9%[108] Shareholder and Equity Information - As of June 30, 2023, the total number of issued shares is 2,867,102,420, with major shareholders holding significant stakes: Xiamen Guomao Holding Group at 28.62% and Zhang Mei at 10.01%[83] - The company has granted a total of 47,100,000 shares under the share incentive plan, representing approximately 1.92% of the issued shares as of the adoption date[89] - The company did not declare any interim dividends for the six months ended June 30, 2023[151] Future Outlook and Strategy - The company plans to focus on market expansion and new product development to improve future performance[168] - The company is actively exploring investment and collaboration opportunities in the new energy market, particularly in the stable revenue-generating maintenance sector[24] - The company will continue to focus on luxury and ultra-luxury car brands, enhancing strategic partnerships with major manufacturers, including those in the new energy sector[78]