| 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01728 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | 本月底法定/註冊股本總額： HKD 2,000,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致： ...

（根據開曼群島法律註冊成立的有限公司） （股份代號：1728） 復牌進度季度更新 及 繼續暫停買賣 本公告乃由中國正通汽車服務控股有限公司（「本公司」）根據香港聯合交易所有限公 司（「聯交所」）證券上市規則（「上市規則」）第13.09條及香港法例第571章證券及期貨 條例第XIVA部項下之內幕消息條文而作出。 茲提述(i)本公司與信達汽車（香港）有限公司（「要約人」）於2025年6月9日就（其中包 括）要約而聯合刊發之綜合要約及回應文件（「綜合文件」）；(ii)本公司與要約人於 2025年6月30日就（其中包括）要約結果及本公司股份於聯交所暫停買賣之聯合公 告；(iii)本公司日期為2025年8月1日之公告，內容有關聯交所發出之復牌指引； 及(iv)本公司日期為2025年9月19日之公告，內容有關授出嚴格遵守上市規則第 8.08(1)條及第13.32(1)條之豁免（「豁免公告」）。誠如豁免公告所述，聯交所已向本 公司授出暫時豁免嚴格遵守上市規則第8.08(1)條及第13.32(1)條，期間由2025年6月 30日起至2025年12月31日止（「豁免期」）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本 ...

[Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the Group's market performance, business operations, financial results, and future strategies for the reporting period [Market Review](index=3&type=section&id=%E5%B8%82%E5%9C%BA%E5%9B%9E%E9%A1%BE) In H1 2025, China's auto market grew with policy support, driven by NEVs exceeding 50% penetration, while luxury car sales slightly declined and used car market improved in quality - In H1 2025, multiple government departments, including the National Development and Reform Commission and the Ministry of Finance, introduced policies that further strengthened support for the automotive industry compared to 2024, which is expected to drive new and used car sales[5](index=5&type=chunk) 2025 H1 China Passenger Vehicle Market Data | Metric | Data | | :--- | :--- | | Overall Retail Sales | 10.901 million units | | Y-o-Y Growth | 10.8% | | Luxury Car Sales Y-o-Y Decline | 5%–7% (approx. 1.6 million units) | | New Energy Vehicle Sales | 5.468 million units | | New Energy Vehicle Sales Y-o-Y Growth | 33.3% | | New Energy Vehicle Market Penetration | 50.2% | | Used Car Market Cumulative Transaction Volume | 9.5701 million units | | Used Car Market Transaction Volume Y-o-Y Growth | 2.0% | | National Vehicle Ownership (as of end of June) | 360 million units | | New Energy Vehicle Ownership Proportion | 10.3% | [Business Review](index=3&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The Group focused on mid-to-high-end auto operations, optimizing management, accelerating NEV transformation, closing inefficient stores, and enhancing digital management, with a HKD 1 billion share issuance to Xinda Auto (Hong Kong) Co., Ltd., making Xiamen ITG Holding Group Co., Ltd. the controlling shareholder and relocating the management headquarters to Xiamen - The Group continued to focus on mid-to-high-end brand automobile operations, enhancing core competitiveness and operational quality through optimizing management structure, promoting new energy transformation, closing inefficient stores, strengthening centralized procurement, and digital management[7](index=7&type=chunk) - In June 2025, the Group completed a share issuance to Xinda Auto (Hong Kong) Co., Ltd., raising approximately **HKD 1 billion**, with Xiamen ITG Holding Group Co., Ltd. becoming the controlling shareholder, providing capital support and resource guarantees for the Group's future development[7](index=7&type=chunk) - The Group's management headquarters officially relocated to Xiamen to better utilize local resources, deepen localized operations, and lay the foundation for strategic synergy within the shareholder system[7](index=7&type=chunk) 2025 H1 Group Operating Overview | Metric | Data | | :--- | :--- | | Awards and Honors | 53 units (51 from manufacturers, 2 from government/media/industry associations) | | Ranking among Top 100 Chinese Auto Dealer Groups | 21st | | Ranking among Top 100 Chinese Auto Dealer Groups — New Energy Sub-list | 66th | | Revenue | approx. RMB 8,891.0 million | | Gross Profit | approx. RMB 297.5 million | [Automobile Dealership](index=4&type=section&id=%E6%B1%BD%E8%BD%A6%E7%BB%8F%E9%94%80) The Group restructured its automobile dealership business, promoting regional coordination and vertical brand management, accelerating NEV transformation, and strengthening centralized and digital management to improve operational efficiency, with NEV sales accounting for approximately 8.6% of new car sales - The Group restructured its automobile dealership brand business architecture, emphasizing both regional coordination and vertical brand management, vigorously promoting the transformation of stores towards new energy brands[8](index=8&type=chunk) - New energy new car sales accounted for approximately **8.6%** of the Group's total sales[8](index=8&type=chunk) - Leveraging digital technology, the Group strengthened dynamic inventory monitoring and early warning systems, continuously reducing operational risks and steadily improving operational efficiency and quality[8](index=8&type=chunk) [New Car Sales Business](index=4&type=section&id=%E6%96%B0%E8%BD%A6%E9%94%80%E5%94%AE%E4%B8%9A%E5%8A%A1) Facing declining fuel vehicle market share, the Group optimized operating strategies (structural optimization, efficiency improvement) and marketing methods (online lead generation, offline conversion, private domain retention) to navigate market challenges, achieving resilient new car sales amidst adversity - Operating strategies focused on "structural optimization and efficiency improvement," dynamically allocating inventory, increasing the投放 of high-margin pure electric and plug-in hybrid models in first-tier cities, and prioritizing cost-effective fuel vehicles and entry-level new energy products in lower-tier markets[9](index=9&type=chunk) - A regional inventory allocation platform was established, relying on a digital system to monitor store supply and demand in real-time and create a rapid cross-store transfer mechanism, leading to an improvement in inventory turnover efficiency year-on-year[9](index=9&type=chunk) - The price management system was upgraded, building a dynamic pricing model that covers competitor prices, inventory depth, and customer profiles, to match customized solutions for different customer segments[9](index=9&type=chunk) - Marketing strategies adhered to a "three-in-one" approach of "online lead generation, offline conversion, and private domain retention," enhancing sales through new media operations, cross-industry traffic import, offline integrated marketing activities, and enterprise WeChat communities[10](index=10&type=chunk) 2025 H1 New Car Sales Data | Metric | 2025 H1 | Y-o-Y Change | | :--- | :--- | :--- | | Total New Car Sales | 26,840 units | up approx. 0.8% | | Mid-to-High-End Car Sales | 23,747 units | up approx. 4.7% | [After-Sales Service Business](index=5&type=section&id=%E5%94%AE%E5%90%8E%E6%9C%8D%E5%8A%A1%E4%B8%9A%E5%8A%A1) The Group upheld a customer-centric philosophy, optimizing service experience, offering differentiated products and precise services, and expanding service scope through segmented customer operations, data-driven customer re-engagement, and accelerated digital service channel development to enhance efficiency and transparency - The after-sales business system was continuously improved, refining customer segmentation and operations, launching exclusive service packages for high-value customers, which steadily increased after-sales return visits[11](index=11&type=chunk) - Digital service channel construction was accelerated, integrating online and offline scenarios, allowing customers to book appointments with one click and view maintenance progress in real-time, thereby improving service efficiency and transparency[11](index=11&type=chunk) 2025 H1 After-Sales Service Data | Metric | Data | | :--- | :--- | | Cumulative Auto After-Sales Service Units | 504,250 units | | After-Sales Service Revenue | approx. RMB 1,486.9 million | [Automobile Derivative Business](index=6&type=section&id=%E6%B1%BD%E8%BD%A6%E8%A1%8D%E7%94%9F%E4%B8%9A%E5%8A%A1) The Group deepened its used car business layout, advancing center transformation, optimizing auction platform partnerships, piloting its own platform, and enhancing business capabilities through internal competitions; auto finance revenue significantly increased year-on-year, and insurance agency business expanded its integrated advantages through product optimization and renewal center pilots [Used Car Business](index=6&type=section&id=%E4%BA%8C%E6%89%8B%E8%BD%A6%E4%B8%9A%E5%8A%A1) The Group deepened its used car business layout by upgrading existing centers, preparing new stores, and optimizing auction platform partnerships to enhance turnover and profitability - The Group deepened its used car business layout, advancing the transformation and upgrading of four used car centers in Beijing, Shenzhen, Wuhan, and Guangzhou, and preparing new center stores, with coverage now reaching nearly **60%** of stores[12](index=12&type=chunk) - The auction platform cooperation system was optimized, introducing leading industry and high-quality auction platform enterprises, while also piloting its own auction platform to accelerate used car turnover efficiency and optimize per-vehicle gross profit levels[12](index=12&type=chunk) 2025 H1 Used Car Sales | Metric | Y-o-Y Growth | | :--- | :--- | | Used Car Sales | approx. 7.2% | [Auto Finance Business](index=6&type=section&id=%E6%B1%BD%E8%BD%A6%E9%87%91%E8%9E%8D%E4%B8%9A%E5%8A%A1) The Group expanded collaborations with financial institutions, exploring win-win solutions for retail auto mortgage loans, leading to a significant increase in mortgage loan support service revenue - The Group continued to engage in deep and extensive cooperation with various auto finance companies and banks, expanding collaboration areas and actively exploring win-win solutions for retail auto mortgage loans[13](index=13&type=chunk) 2025 H1 Auto Finance Business Revenue | Metric | Amount (RMB million) | Y-o-Y Growth | | :--- | :--- | :--- | | Mortgage Loan Support Service Revenue | 693.0 | approx. 112.8% | - The significant increase in revenue was primarily due to its income being reported as revenue from April 1, 2024, whereas mortgage loan support service income generated between January 1, 2024, and March 31, 2024, was included under "Service income" in "Other income"[13](index=13&type=chunk) [Insurance Agency Business](index=6&type=section&id=%E4%BF%9D%E9%99%A9%E4%BB%A3%E7%90%86%E4%B8%9A%E5%8A

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China ZhengTong Auto Services Holdings Limited 中國正通汽車服務控股有限公司 （根據開曼群島法律註冊成立的有限公司） 茲提述(i)本公司與信達汽車（香港）有限公司（「要約人」）於2025年6月9日聯合刊發之 綜合要約及回應文件（「綜合文件」），內容有關（其中包括）要約；(ii)本公司與要約人 日期為2025年6月30日之聯合公告（「要約截止公告」），內容有關（其中包括）要約結 果及本公司股份暫停在聯交所買賣；及(iii)本公司日期為2025年8月1日之公告，內 容有關聯交所發出之復牌指引。 除另有界定者外，本公告所用詞彙與綜合文件所界定者具有相同涵義。 授出豁免 誠如要約截止公告所述，緊隨要約截止後，公眾人士（定義見上市規則）持有 930,834,208股股份，約佔本公司於要約截止公告日期之已發行股本總額9.29%。因 – 1 – 此，本公司並未符合上市規則 ...

Core Viewpoint - The strategic cooperation agreement signed between China Agricultural Development Bank and China Post Group aims to enhance collaboration in various sectors to support rural development and provide high-quality services for the agricultural sector [1] Group 1: Strategic Cooperation Areas - The agreement focuses on practical cooperation in credit support for agriculture, financial markets, logistics, and rural e-commerce [1] - A regular communication mechanism will be established to strengthen policy coordination and resource integration [1] Group 2: Objectives and Implementation - The partnership aims to implement a list of actionable items to ensure effective execution of the cooperation [1] - The collaboration is intended to contribute significantly to the development of the "three rural issues" (agriculture, rural areas, and farmers) [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 FF301 第 1 頁 共 10 頁 v 1.1.1 致：香港交易及結算所有限公司 FF301 公司名稱: 中國正通汽車服務控股有限公司 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01728 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 | H ...

Core Viewpoint - The company reported a revenue decline of approximately 10.0% to about RMB 8,891.0 million for the six months ending June 30, 2025, primarily due to a decrease in new car prices [1] Financial Performance - Revenue decreased by approximately 10.0% to about RMB 8,891.0 million [1] - Overall gross profit increased by approximately 67.9% to about RMB 297.5 million, with a gross margin increase of 1.5 percentage points to 3.3% [1] - The loss for the period was approximately RMB 887.5 million, compared to a loss of approximately RMB 634.8 million in the same period of 2024 [1] Factors Influencing Performance - The decline in revenue was mainly attributed to the decrease in new car prices [1] - The increase in gross profit was due to revenue from providing mortgage loan support services being recognized as income starting from April 1, 2024 [1] - The losses were primarily due to the decline in new car prices, impairment of goodwill and intangible assets, and impairment of property, plant, and equipment [1]

Group 1 - The company reported a revenue of RMB 8.891 billion for the six months ending June 30, 2025, representing a year-on-year decrease of 9.97% [1] - The loss attributable to shareholders was RMB 994 million, which is an increase of 39.63% compared to the previous year [1] - The loss per share was 22.8 cents [1]

Group 1 - The core viewpoint of the article highlights that Zhengtong Automobile (01728) reported a revenue of RMB 8.891 billion for the six months ending June 30, 2025, representing a year-on-year decrease of 9.97% [1] - The company experienced a shareholder loss of RMB 994 million, which is an increase of 39.63% compared to the previous year [1] - The loss per share was reported at 22.8 cents [1]

[Executive Summary](index=1&type=section&id=Executive%20Summary) The company focuses on high-end brands, drives new energy transformation, and optimizes management, supported by a HKD 1 billion capital injection from Guomao Holdings, which became the controlling shareholder [Company Strategy and Transformation](index=1&type=section&id=Company%20Strategy%20and%20Transformation) Amid intense competition, the company focuses on high-end brands, optimizes management, promotes new energy vehicles, closes inefficient stores, and enhances digital management, supported by a HKD 1 billion capital injection from Guomao Holdings - Facing overcapacity and price wars in the automotive industry, the group focuses on operating high-end and mid-range brands, enhancing core competitiveness and operational quality through optimized management, new energy transformation, closure of inefficient stores, and strengthened centralized procurement and digital management[3](index=3&type=chunk) - The company completed a share issuance to a Guomao Holdings subsidiary, raising approximately **HKD 1 billion**, making Guomao Holdings the controlling shareholder and providing strong capital and resource support. The management headquarters relocated to Xiamen to integrate local resources[3](index=3&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, revenue decreased by 10.0% to RMB 8,891.0 million, but gross profit significantly increased by 67.9% to RMB 297.5 million due to reclassification of mortgage loan support service income, while loss for the period widened to RMB 887.5 million Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB million) | Same Period 2024 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 8,891.0 | 9,875.6 | -10.0% | | Overall Gross Profit | 297.5 | 177.1 | +67.9% | | Gross Profit Margin | 3.3% | 1.8% | +1.5 percentage points | | Loss for the Period | (887.5) | (634.8) | Loss widened | | Basic Loss Per Share | (0.228) | (0.250) | Loss narrowed | | Net Cash from Operating Activities | 77.9 | 147.1 | -47.1% | - Revenue decrease was primarily due to lower new car selling prices; gross profit increase was mainly due to income from mortgage loan support services being reclassified as revenue starting April 1, 2024[4](index=4&type=chunk) - The widening loss for the period was primarily due to lower new car selling prices, impairment losses on goodwill and intangible assets, and impairment losses on property, plant, and equipment[4](index=4&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position, including income, comprehensive income, and balance sheets [Consolidated Statement of Profit or Loss](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported a decrease in revenue, a significant increase in gross profit, but a wider loss for the period due to impairment losses and increased operating loss Consolidated Statement of Profit or Loss for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 8,891,028 | 9,875,622 | | Cost of Sales | (8,593,504) | (9,698,464) | | Gross Profit | 297,524 | 177,158 | | Other Income | 249,959 | 564,592 | | Selling and Distribution Expenses | (459,658) | (470,564) | | Administrative Expenses | (516,545) | (504,360) | | Impairment Loss on Goodwill and Intangible Assets | (115,000) | — | | Operating Loss | (543,720) | (233,174) | | Finance Costs | (439,912) | (492,060) | | Loss Before Tax | (982,742) | (723,118) | | Income Tax | 95,205 | 88,278 | | Loss for the Period | (887,537) | (634,840) | | Loss for the Period Attributable to Ordinary Equity Holders of the Company | (993,826) | (711,734) | | Basic and Diluted Loss Per Share (RMB cents) | (22.8) | (25.0) | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported a loss for the period of RMB 887.5 million, with total comprehensive income slightly lower due to foreign exchange differences Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Period | (887,537) | (634,840) | | Other Comprehensive Income for the Period (After Tax): | | | | Exchange Differences on Translation of Financial Statements of Overseas Operations in Mainland China | 2,007 | (7,010) | | Other Comprehensive Income for the Period | 2,007 | (7,010) | | Total Comprehensive Income for the Period | (885,530) | (641,850) | | Total Comprehensive Income for the Period Attributable to Ordinary Equity Holders of the Company | (991,819) | (718,744) | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's non-current and current assets decreased, but net current liabilities improved, while net assets and total equity increased due to capital structure changes Consolidated Statement of Financial Position as of June 30, 2025 (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 5,641,808 | 5,855,395 | | Intangible Assets | 2,159,073 | 2,302,546 | | Goodwill | 494,851 | 534,641 | | Total Non-Current Assets | 13,470,802 | 13,896,931 | | **Current Assets** | | | | Inventories | 3,599,258 | 3,306,990 | | Trade and Bills Receivables | 980,337 | 1,145,086 | | Cash and Cash Equivalents | 872,939 | 573,088 | | Total Current Assets | 13,644,453 | 15,321,305 | | **Current Liabilities** | | | | Loans and Borrowings | 14,631,705 | 17,550,020 | | Total Current Liabilities | 20,212,460 | 23,654,203 | | Net Current Liabilities | (6,568,007) | (8,332,898) | | **Non-Current Liabilities** | | | | Loans and Borrowings | 3,315,440 | 2,419,911 | | Total Non-Current Liabilities | 5,256,752 | 4,494,295 | | Net Assets | 1,646,043 | 1,069,738 | | Total Equity | 1,646,043 | 1,069,738 | [Notes to the Unaudited Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures for the unaudited interim financial statements, covering general information, accounting policies, and specific financial items [General Information](index=7&type=section&id=General%20Information) This section outlines the registration details and primary business scope of China ZhengTong Auto Services Holdings Limited - The company was incorporated in the Cayman Islands on July 9, 2010, primarily engaging in 4S dealership business, automotive supply chain business, and integrated property business in China[9](index=9&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) This section details the accounting standards and review process for the interim financial statements, affirming the company's going concern despite losses, supported by the controlling shareholder - These interim financial statements are prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[10](index=10&type=chunk) - As of June 30, 2025, the group incurred a net loss of **RMB 888 million** and recorded net current liabilities of **RMB 6,568 million**, but the directors, based on cash flow forecasts for the next 12 months and financial support from controlling shareholder Guomao Holdings, believe the group has the ability to continue as a going concern[12](index=12&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=Changes%20in%20Accounting%20Policies) This section describes the changes in accounting policies applied to the interim financial statements for the current period and their impact - The amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability" were applied in the current accounting period but had no significant impact on the interim financial statements[13](index=13&type=chunk) [Revenue](index=9&type=section&id=Revenue) This section details the company's main revenue sources and amounts, explaining the impact of reclassifying mortgage loan support service income - The group's primary revenue sources include passenger car sales, mortgage loan support services, after-sales services, logistics services, and sales of integrated properties[15](index=15&type=chunk) Revenue Breakdown for the Six Months Ended June 30, 2025 (RMB thousand) | Revenue Category | 2025 | 2024 | | :--- | :--- | :--- | | Passenger Car Sales | 6,552,047 | 7,657,625 | | Provision of Mortgage Loan Support Services | 693,024 | 325,635 | | Provision of After-Sales Services | 1,486,857 | 1,698,980 | | Provision of Logistics Services | 155,438 | 180,775 | | Sales of Integrated Properties | 3,662 | 12,597 | | **Total Revenue** | **8,891,028** | **9,875,612** | - Income from providing mortgage loan support services has been reclassified as revenue since April 1, 2024, leading to a significant increase in this revenue item[16](index=16&type=chunk) [Loss Before Tax](index=10&type=section&id=Loss%20Before%20Tax) This section details the major expenses impacting the company's loss before tax, including finance costs, staff costs, and other operating items, explaining property, plant, and equipment impairment - Loss before tax is arrived at after deducting/(crediting) finance costs, staff costs, and other items[18](index=18&type=chunk)[21](index=21&type=chunk) [Finance Costs](index=10&type=section&id=Finance%20Costs) This section presents a breakdown of the company's finance costs for the six months ended June 30, 2025 and 2024 Finance Costs for the Six Months Ended June 30, 2025 (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on Loans and Borrowings | 403,701 | 461,936 | | Interest on Lease Liabilities | 36,180 | 36,091 | | Other Finance Costs | 11,369 | 16,577 | | Less: Capitalized Interest | (11,338) | (22,544) | | **Total Finance Costs** | **439,912** | **492,060** | [Staff Costs](index=10&type=section&id=Staff%20Costs) This section presents a breakdown of the company's staff costs for the six months ended June 30, 2025 and 2024 Staff Costs for the Six Months Ended June 30, 2025 (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 329,455 | 367,388 | | Defined Contribution Retirement Plan Contributions | 30,704 | 28,136 | | Equity-Settled Share-Based Payment Expenses | — | 196 | | **Total Staff Costs** | **360,159** | **395,720** | [Other Items](index=11&type=section&id=Other%20Items) This section details other significant items affecting the company's financial performance, including impairment losses on property, plant, and equipment - For the six months ended June 30, 2025, in view of intense market competition in the automotive industry and evolving customer demand, the group decided to transform or close some 4S stores, recognizing an impairment loss on property, plant and equipment of **RMB 126,376,000**[21](index=21&type=chunk) [Income Tax](index=12&type=section&id=Income%20Tax) This section outlines the company's income tax credit for the reporting period, including corporate income tax rates and preferential policies for its Chinese subsidiaries Income Tax for the Six Months Ended June 30, 2025 (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Tax: Provision for China Income Tax for the Period | 5,045 | 50,446 | | Deferred Tax: Origination and Reversal of Temporary Differences | (100,250) | (138,724) | | **Total Income Tax** | **(95,205)** | **(88,278)** | - The corporate income tax rate for the group's Chinese subsidiaries is **25%**, while Shengze Jietong Supply Chain Co., Ltd., a Chinese automotive logistics provider, enjoys a preferential tax rate of **15%** as a high-tech enterprise[26](index=26&type=chunk) [Loss Per Share](index=12&type=section&id=Loss%20Per%20Share) This section provides the company's basic and diluted loss per share for the six months ended June 30, 2025, and the weighted average number of ordinary shares used in the calculation Loss Per Share for the Six Months Ended June 30, 2025 (RMB cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic Loss Per Share | (22.8) | (25.0) | | Diluted Loss Per Share | (22.8) | (25.0) | - For the six months ended June 30, 2025, the weighted average number of ordinary shares outstanding was **4,367,979,834** shares, a significant increase from **2,850,682,420** shares in the same period of 2024[25](index=25&type=chunk) [Intangible Assets](index=13&type=section&id=Intangible%20Assets) This section details the composition, cost, accumulated amortization, and impairment losses of the company's intangible assets, explaining the impairment due to market changes Carrying Value of Intangible Assets as of June 30, 2025 (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Automobile Dealership Rights and Dealership Operating Rights | 1,941,138 | 2,084,689 | | Trademarks | 208,659 | 208,659 | | Software and Others | 9,276 | 9,198 | | **Total** | **2,159,073** | **2,302,546** | - For the six months ended June 30, 2025, an impairment loss on intangible assets of **RMB 75,210,000** was recognized due to changes in the macroeconomic environment, intense competition in the automotive dealership industry, and evolving customer demand[30](index=30&type=chunk) [Goodwill](index=15&type=section&id=Goodwill) This section presents the cost, accumulated impairment losses, and carrying value of the company's goodwill, explaining impairment due to market competition and underperforming stores Carrying Value of Goodwill as of June 30, 2025 (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cost | 2,006,335 | 2,006,335 | | Accumulated Impairment Losses | 1,511,484 | 1,471,694 | | **Carrying Value** | **494,851** | **534,641** | - For the six months ended June 30, 2025, an impairment loss on goodwill of **RMB 39,790,000** was recognized due to intense competition in the automotive dealership industry and certain stores performing below expectations[30](index=30&type=chunk)[32](index=32&type=chunk) [Other Financial Assets / (Liabilities)](index=16&type=section&id=Other%20Financial%20Assets%20%2F%20%28Liabilities%29) This section details the composition of the company's other financial assets and liabilities, including wealth management products, option contracts, swap contracts, and investments Other Financial Assets / (Liabilities) as of June 30, 2025 (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other Financial Assets at Fair Value Through Profit or Loss (Current) | 57,039 | 65,119 | | Other Financial Assets at Fair Value Through Profit or Loss (Non-Current) | 514,406 | 511,829 | | Other Financial Liabilities at Fair Value Through Profit or Loss (Current) | (13,772) | (296) | | Other Financial Liabilities at Fair Value Through Profit or Loss (Non-Current) | (6,040) | (6,320) | - The investment in Dongfeng Logistics (8.66% equity interest) had a fair value of **RMB 501,715,000** as of June 30, 2025, consistent with December 31, 2024[35](index=35&type=chunk) [Inventories](index=17&type=section&id=Inventories) This section details the composition of the company's inventories, including vehicles and spare parts for 4S dealership business and properties under development for sale, and analyzes inventory recognized as expense Inventory Composition as of June 30, 2025 (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 4S Dealership Business — Automobiles | 2,863,745 | 2,655,612 | | 4S Dealership Business — Automobile Spare Parts | 266,930 | 258,865 | | Integrated Property Business — Properties Under Development for Sale | 415,935 | 339,822 | | **Total Inventories** | **3,599,258** | **3,306,990** | Amount of Inventories Recognized as Expense for the Six Months Ended June 30, 2025 (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Carrying Amount of Inventories Sold | 8,462,197 | 9,369,900 | | Write-down of Inventories | 42,939 | 106,288 | | Reversal of Write-down of Inventories | (5,809) | (3,235) | | **Total** | **8,499,327** | **9,472,953** | [Trade and Bills Receivables](index=18&type=section&id=Trade%20and%20Bills%20Receivables) This section provides an aging analysis of the company's trade and bills receivables and outlines its credit risk management policy Aging Analysis of Trade and Bills Receivables as of June 30, 2025 (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 Months | 975,952 | 1,139,432 | | Over 3 Months but Within 1 Year | 2,344 | 2,159 | | Over 1 Year | 2,041 | 3,495 | | **Total** | **980,337** | **1,145,086** | - Trade receivables primarily refer to amounts due from individual customers and warranty deposits from automobile manufacturers, with limited credit risk, and management has implemented credit policies for continuous monitoring[39](index=39&type=chunk) [Prepayments, Deposits and Other Receivables](index=19&type=section&id=Prepayments%2C%20Deposits%20and%20Other%20Receivables) This section lists the components of the company's prepayments, deposits, and other receivables, noting that other receivables primarily include supplier rebates from auto manufacturers Prepayments, Deposits and Other Receivables as of June 30, 2025 (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments | 296,848 | 272,164 | | Deposits | 292,065 | 239,213 | | Other Receivables | 4,132,282 | 4,326,730 | | Amounts Due from Related Parties | 112 | — | | **Total** | **4,721,307** | **4,838,107** | - Other receivables primarily include supplier rebates receivable from automobile manufacturers totaling **RMB 3,603,323,000**[40](index=40&type=chunk) [Trade and Other Payables](index=19&type=section&id=Trade%20and%20Other%20Payables) This section provides an aging analysis and composition of the company's trade and other payables, including trade payables, contract liabilities, and other payables Trade and Other Payables as of June 30, 2025 (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | | | | Within 3 Months | 2,764,944 | 3,256,258 | | Over 3 Months but Within 6 Months | 518,431 | 634,230 | | Over 6 Months but Within 12 Months | 5,936 | 5,253 | | Trade and Bills Payables | 3,289,311 | 3,895,741 | | Contract Liabilities | 1,215,294 | 948,918 | | Other Payables and Accruals | 458,945 | 572,251 | | Amounts Due to Related Parties | 38,584 | 54,030 | | **Total Current** | **5,002,134** | **5,470,940** | | Non-Current | | | | Long-Term Payables | 85,731 | 108,697 | | **Total** | **5,087,865** | **5,579,637** | [Capital, Reserves and Dividends](index=20&type=section&id=Capital%2C%20Reserves%20and%20Dividends) This section details changes in the company's share capital, including new share issuance for fundraising, and confirms the board's decision not to recommend an interim dividend - The Board of Directors does not recommend the payment of any interim dividend for the reporting periods ended June 30, 2025, and June 30, 2024[46](index=46&type=chunk) [Share Capital](index=20&type=section&id=Share%20Capital) This section details the changes in the company's issued and fully paid ordinary share capital, including new share issuance from a subscription agreement Changes in Issued and Fully Paid Ordinary Shares as of June 30, 2025 (thousand shares/HKD thousand) | Item | 2025 (Number of Shares) | 2025 (Amount) | 2024 (Number of Shares) | 2024 (Amount) | | :--- | :--- | :--- | :--- | :--- | | As of January 1 | 3,346,990 | 334,699 | 2,867,102 | 286,710 | | Issuance of Ordinary Shares | 6,669,061 | 666,906 | 479,888 | 47,989 | | As of June 30 / December 31 | 10,016,051 | 1,001,605 | 3,346,990 | 334,699 | | RMB Equivalent (thousand) | | 901,394 | | 290,228 | - On January 25, 2025, the company entered into a subscription agreement with Cinda Auto (Hong Kong) Limited to issue **6,669,060,524** subscription shares, raising approximately **HKD 1 billion**, with net proceeds of **RMB 913,544,000**[44](index=44&type=chunk)[45](index=45&type=chunk) [Perpetual Bonds](index=21&type=section&id=Perpetual%20Bonds) This section describes the company's perpetual bonds, their terms, interest rates, redemption rights, and accounting classification as equity - Perpetual bonds 1 to 9 are classified as equity because they impose contractual obligations only in certain circumstances at the group's discretion, essentially granting the group an unconditional right to avoid delivering cash or other financial assets[63](index=63&type=chunk) - For the six months ended June 30, 2025, profit attributable to holders of perpetual bonds 3, 5, and 9 was **RMB 63,414,000**, with **RMB 107,127,000** distributed to relevant bondholders[63](index=63&type=chunk) - Excluding perpetual bonds 3, 5, and 9, profit attributable to holders of other perpetual bonds issued by subsidiaries to external third parties was **RMB 43,250,000**, with **RMB 44,582,000** distributed[64](index=64&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) This section discloses two major contingent liabilities, including a dispute with Beijing Guangze and a loan guarantee, with directors assessing low probability of payment - A dispute with Beijing Guangze involves a contractor's payment notice of **RMB 6 million**, but the company's directors believe the likelihood of being sued or required to pay is low, thus no provision has been made[65](index=65&type=chunk)[66](index=66&type=chunk) - Wuhan Zhengtong provided a guarantee for a fixed asset loan contract between Hubei Bank, Beijing Guangze, and Inner Mongolia Shengze, with an outstanding debt of approximately **RMB 553 million**, but the estimated realizable value of the collateral is **RMB 627 million**, leading directors to assess a low probability of payment[67](index=67&type=chunk)[68](index=68&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational and financial performance, market conditions, and strategic initiatives for the reporting period [Market Review](index=27&type=section&id=Market%20Review) In the first half of 2025, China's automotive market saw strong growth, particularly in new energy vehicles, driven by policy support and increasing market penetration - In H1 2025, China's passenger car market achieved total retail sales of **10.901 million units**, a year-on-year increase of approximately **10.8%**, driven by policies for vehicle scrapping and replacement[70](index=70&type=chunk) - New energy vehicle sales reached approximately **5.468 million units**, a year-on-year increase of approximately **33.3%**, with market penetration rising to **50.2%**, dominating China's new car sales market[70](index=70&type=chunk) - As of the end of June 2025, the national vehicle parc was approximately **360 million units**, with new energy vehicles accounting for over **10%** at **10.3%**, generating significant new demand for the automotive after-sales market[71](index=71&type=chunk) [Business Review](index=27&type=section&id=Business%20Review) In H1 2025, the group focused on high-end brands, new energy transformation, and management optimization, supported by a HKD 1 billion capital injection from Guomao Holdings, with headquarters relocating to Xiamen - The group continues to focus on operating high-end and mid-range automotive brands, comprehensively enhancing its core competitiveness and operational quality through optimized management structure, promotion of new energy brand transformation, closure and consolidation of inefficient stores, strengthened centralized procurement, and improved digital management capabilities[72](index=72&type=chunk)[73](index=73&type=chunk) - The company completed a share issuance to a Guomao Holdings subsidiary, raising approximately **HKD 1 billion**, making Guomao Holdings the controlling shareholder, and officially relocating its management headquarters to Xiamen to deeply integrate local resources[73](index=73&type=chunk) - The group ranked **21st** in the 2025 China Automobile Dealer Group Top 100 list and **66th** in the 2025 China Top 100 Automobile Dealer Groups—New Energy Sub-list[73](index=73&type=chunk) [Automobile Dealership](index=28&type=section&id=Automobile%20Dealership) The group restructured its automobile dealership business in H1 2025, accelerating the transition to new energy brands, which now account for approximately 8.6% of total new car sales, operating 92 outlets - The group implemented a business architecture restructuring for its automobile dealership brands, combining regional coordination with vertical brand management, vigorously promoting the transformation of stores towards new energy brands, with new energy new car sales accounting for approximately **8.6%** of the group's total sales[74](index=74&type=chunk) - As of June 30, 2025, the group operated **92** outlets across **36** cities in **15** provinces and municipalities nationwide, having also established dealership and after-sales operations for mainstream new energy brands such as AITO Wenjie, Tesla, and NIO[82](index=82&type=chunk) [New Car Sales Business](index=29&type=section&id=New%20Car%20Sales%20Business) The group actively adjusted brand strategies, optimized inventory, and implemented a "online lead generation, offline conversion, private domain retention" marketing approach, resulting in a 0.8% increase in new car sales - The group actively adjusted existing brand operating strategies and marketing methods, focusing on "structural optimization and efficiency improvement," dynamically allocating inventory, and building a regional inventory allocation platform to enhance inventory turnover efficiency[75](index=75&type=chunk) - Marketing adhered to a "online lead generation, offline conversion, private domain retention" strategy, increasing lead acquisition and transaction volume through new media operations, cross-industry traffic import, and community fission[76](index=76&type=chunk) - For the six months ended June 30, 2025, new car sales totaled **26,840 units**, a year-on-year increase of approximately **0.8%**, with **23,747 units** being high-end and mid-range vehicles, an increase of approximately **4.7%** year-on-year[77](index=77&type=chunk) [After-Sales Service Business](index=30&type=section&id=After-Sales%20Service%20Business) The group continuously optimized customer service experience, implemented tiered customer operations, and accelerated digital service channel development, achieving approximately RMB 1,486.9 million in after-sales service revenue - The group continuously optimized customer service experience, refined customer segmentation operations, launched exclusive service packages for high-value customers, and accelerated the construction of digital service channels to improve service efficiency and transparency[78](index=78&type=chunk) - For the six months ended June 30, 2025, cumulative after-sales service instances reached **504,250**, generating after-sales service revenue of approximately **RMB 1,486.9 million**[78](index=78&type=chunk) [Automobile Derivative Business](index=30&type=section&id=Automobile%20Derivative%20Business) The group made positive progress in used car, auto finance, and insurance agency businesses, enhancing efficiency through platform optimization, financial institution partnerships, and product innovation - The group deepened its used car business layout, promoted the transformation and upgrade of used car centers, optimized the auction platform cooperation system, and piloted its self-operated auction platform to improve turnover efficiency and gross profit margins[79](index=79&type=chunk)[80](index=80&type=chunk) - The group continued extensive and in-depth cooperation with various financial institutions to expand auto retail mortgage loan solutions, effectively increasing the total volume and terms of financial products offered[80](index=80&type=chunk) - Dingze Insurance Agency continued to optimize its business structure, implement intensive operations, and piloted a renewal center in Wuhan, with plans to expand to other core cities[81](index=81&type=chunk) [Used Car Business](index=30&type=section&id=Used%20Car%20Business) The group's used car sales increased by approximately 7.2% year-on-year for the six months ended June 30, 2025, driven by enhanced efficiency and platform optimization - For the six months ended June 30, 2025, the group's used car sales increased by approximately **7.2%** year-on-year[80](index=80&type=chunk) [Auto Finance Business](index=31&type=section&id=Auto%20Finance%20Business) For the six months ended June 30, 2025, income from mortgage loan support services increased by approximately 112.8% to RMB 693.0 million, primarily due to reclassification as revenue - For the six months ended June 30, 2025, income from providing mortgage loan support services was approximately **RMB 693.0 million**, a year-on-year increase of approximately **112.8%**, mainly due to its income being reclassified as revenue starting April 1, 2024[80](index=80&type=chunk) [Insurance Agency Business](index=31&type=section&id=Insurance%20Agency%20Business) For the six months ended June 30, 2025, the group's insurance agency income increased by approximately 68.6% to RMB 55.6 million, driven by business structure optimization and centralized operations - For the six months ended June 30, 2025, the group's cumulative insurance agency income reached approximately **RMB 55.6 million**, a year-on-year increase of approximately **68.6%**[81](index=81&type=chunk) [Accelerated New Energy Transformation](index=32&type=section&id=Accelerated%20New%20Energy%20Transformation) The group rapidly expanded its new energy vehicle dealership network by converting existing assets, opening new stores, and securing pre-authorizations for mainstream new energy brands - The group achieved rapid deployment of its new energy vehicle dealership network through the conversion of existing assets, with the Beijing AITO Wenjie User Center and Zhanjiang Jetour store successfully opening in the first half of the year, and new Geely Galaxy authorization in Guangzhou[82](index=82&type=chunk) - As of mid-August 2025, the group has successfully obtained pre-authorizations for **7** mainstream new energy brands in Beijing, Zhuhai, Jieyang, Shantou, and other locations, with related preparatory work fully underway[83](index=83&type=chunk) [Supply Chain Business](index=33&type=section&id=Supply%20Chain%20Business) The group's supply chain subsidiary, Shengze Jietong Supply Chain Co., Ltd., generated approximately RMB 155.4 million in revenue, actively expanding and optimizing vehicle and spare parts warehousing services - Shengze Jietong Supply Chain Co., Ltd. generated operating revenue of approximately **RMB 155.4 million** in the first half of the year, affected by national new energy vehicle subsidy policies and changes in business routes[84](index=84&type=chunk) - In terms of complete vehicle business, the company continued to carry out commercial vehicle road transport and coastal multimodal transport projects, actively promoted the normalization of new energy passenger vehicle shipping, and expanded new complete vehicle transport businesses for FAW Group and Geely Auto brands in multiple regions[84](index=84&type=chunk) - For spare parts warehousing business, the focus was on optimizing spare parts inventory and warehousing costs, improving the inbound and outbound capabilities for automotive spare parts, and continuously expanding warehousing leasing business[84](index=84&type=chunk) [Emerging Businesses](index=33&type=section&id=Emerging%20Businesses) The group is actively pursuing international business expansion and closely monitoring the transformative impact of intelligent connected vehicles to strategically position for future growth - The group is accelerating its international business strategic layout, vigorously expanding its global business footprint, actively striving for domestic main airport export authorizations, overseas local dealership authorizations, and seeking overseas localized joint ventures and cooperation[85](index=85&type=chunk)[86](index=86&type=chunk) - The company closely monitors the transformative impact of intelligent connected vehicles on the future mobility market, aiming to strategically position for development during the industry's transformation period[86](index=86&type=chunk) [Management Enhancement](index=34&type=section&id=Management%20Enhancement) In H1 2025, the group continuously improved management across organizational structure, cost reduction, governance, internal supervision, risk prevention, and digital transformation to optimize operational efficiency - In terms of organizational structure, the group adjusted and optimized the headquarters' departmental structure, streamlined management levels in the automotive dealership segment, and established a flatter business control model[87](index=87&type=chunk) - Regarding cost reduction and efficiency improvement, the group strictly controlled various expense expenditures, expanded diversified financing channels, replaced high-interest debt, and improved operational management and economic efficiency[87](index=87&type=chunk) - In terms of standardized governance, internal supervision, risk prevention, and digital transformation, the group continuously improved its systems and internal control framework, reconstructed its risk and compliance system, and launched the "Cangqiong" digital platform for implementation and promotion[87](index=87&type=chunk)[89](index=89&type=chunk) [Financial Review](index=35&type=section&id=Financial%20Review) This section reviews the company's H1 2025 financial performance, including revenue, costs, gross profit, expenses, loss, assets, liabilities, cash flow, capital expenditure, inventory, and leverage - The group will actively enhance its operating efficiency and consider various methods to improve its current financial position and reduce its leverage level[103](index=103&type=chunk) [Operating Revenue](index=35&type=section&id=Operating%20Revenue) Total operating revenue decreased by 10.0% to RMB 8,891.0 million, primarily due to lower new car selling prices, with new car sales and mortgage loan services contributing 81.5% of total revenue Operating Revenue for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 8,891.0 | 9,875.6 | -10.0% | | New Car Sales and Mortgage Loan Services Revenue | 7,245.1 | 7,983.3 | -9.2% | | After-Sales Service Revenue | 1,486.9 | 1,699.0 | -12.5% | - The decrease in revenue was primarily due to lower new car selling prices during the period. New car sales and mortgage loan services revenue accounted for **81.5%** of total revenue, with high-end and mid-range automotive sales revenue accounting for approximately **94.3%** of new car sales revenue[88](index=88&type=chunk) [Cost of Sales](index=36&type=section&id=Cost%20of%20Sales) Total cost of sales decreased by 11.4% to RMB 8,593.5 million, primarily due to lower average new car procurement prices and reduced new car and after-sales service revenue Cost of Sales for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Cost of Sales | 8,593.5 | 9,698.5 | -11.4% | | New Car Sales Cost | 7,496.5 | 8,497.8 | -11.8% | | After-Sales Service Cost | 981.1 | 1,019.1 | -3.7% | - The decrease in cost of sales was primarily due to lower average new car procurement prices and a corresponding reduction in new car and after-sales service revenue[90](index=90&type=chunk) [Gross Profit and Gross Profit Margin](index=36&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased by 67.9% to RMB 297.5 million, and gross profit margin rose by 1.5 percentage points to 3.3%, mainly due to the reclassification of mortgage loan support service income Gross Profit and Gross Profit Margin for the Six Months Ended June 30, 2025 (RMB million) | Indicator | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 297.5 | 177.2 | +67.9% | | Gross Profit Margin | 3.3% | 1.8% | +1.5 percentage points | - The increase in gross profit and gross profit margin was primarily due to income from providing mortgage loan support services being reclassified as revenue starting April 1, 2024[91](index=91&type=chunk) [Selling and Distribution Expenses](index=36&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by approximately 2.3% to RMB 459.7 million, primarily attributable to a reduction in staff costs Selling and Distribution Expenses for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Selling and Distribution Expenses | 459.7 | 470.6 | - Selling and distribution expenses decreased by approximately **2.3%**, primarily due to a decrease in staff costs[92](index=92&type=chunk) [Administrative Expenses](index=36&type=section&id=Administrative%20Expenses) Administrative expenses increased by approximately 2.4% to RMB 516.5 million, primarily due to impairment losses on property, plant, and equipment Administrative Expenses for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Administrative Expenses | 516.5 | 504.4 | - Administrative expenses increased by approximately **2.4%**, primarily due to impairment losses on property, plant, and equipment[93](index=93&type=chunk) [Operating Loss](index=37&type=section&id=Operating%20Loss) Operating loss widened to RMB 543.7 million, primarily due to lower new car selling prices, impairment losses on goodwill, intangible assets, and property, plant, and equipment Operating Loss for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Operating Loss | (543.7) | (233.2) | - The increase in operating loss was primarily due to lower new car selling prices, impairment losses on goodwill and intangible assets, and impairment losses on property, plant, and equipment[94](index=94&type=chunk) [Income Tax](index=37&type=section&id=Income%20Tax) The company recorded an income tax credit of RMB 95.2 million for the six months ended June 30, 2025 Income Tax Credit for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Income Tax Credit | 95.2 | 88.3 | [Contingent Liabilities](index=37&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the group had no significant contingent liabilities other than those disclosed in note 18 to the interim financial statements - As of June 30, 2025, the group had no significant contingent liabilities other than those disclosed in note 18 to the interim financial statements[96](index=96&type=chunk) [Loss for the Period](index=37&type=section&id=Loss%20for%20the%20Period) Loss for the period widened to RMB 887.5 million, primarily due to lower new car selling prices, impairment losses on goodwill, intangible assets, and property, plant, and equipment Loss for the Period for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Period | (887.5) | (634.8) | - The increase in loss for the period was primarily due to lower new car selling prices, impairment losses on goodwill and intangible assets, and impairment losses on property, plant, and equipment[97](index=97&type=chunk) [Current Assets and Current Liabilities](index=37&type=section&id=Current%20Assets%20and%20Current%20Liabilities) Current assets decreased by RMB 1,676.9 million, while current liabilities decreased by RMB 3,441.7 million, primarily due to a reduction in short-term borrowings Current Assets and Current Liabilities as of June 30, 2025 (RMB million) | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Assets | 13,644.5 | 15,321.3 | -1,676.9 | | Current Liabilities | 20,212.5 | 23,654.2 | -3,441.7 | - Current liabilities decreased by approximately **RMB 3,441.7 million**, primarily due to a reduction in short-term borrowings[98](index=98&type=chunk) [Cash Flow](index=37&type=section&id=Cash%20Flow) Net cash generated from operating activities was RMB 77.9 million, with cash and cash equivalents increasing by RMB 299.9 million to RMB 872.9 million as of June 30, 2025 Net Cash from Operating Activities for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 77.9 | 147.1 | - As of June 30, 2025, cash and cash equivalents were approximately **RMB 872.9 million**, an increase of approximately **RMB 299.9 million** compared to December 31, 2024[99](index=99&type=chunk) [Capital Expenditure and Investments](index=38&type=section&id=Capital%20Expenditure%20and%20Investments) Capital expenditure and investments decreased by approximately RMB 189.1 million, primarily due to the completion of construction in progress Capital Expenditure and Investments for the Six Months Ended June 30, 2025 (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Capital Expenditure and Investments | 275.5 | 464.6 | - Capital expenditure and investments decreased by approximately **RMB 189.1 million**, primarily due to the completion of construction in progress, leading to reduced investment[101](index=101&type=chunk) [Inventories](index=38&type=section&id=Inventories) Inventories increased by RMB 292.3 million, mainly due to higher year-end vehicle inventory, while average inventory turnover days decreased by 2.4 days, indicating improved efficiency Inventories and Average Inventory Turnover Days as of June 30, 2025 (RMB million/days) | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Inventories | 3,599.3 | 3,307.0 | +292.3 | | Average Inventory Turnover Days | 48.0 days | 50.4 days | -2.4 days | - The increase in inventories was primarily due to higher year-end vehicle inventory, while average inventory turnover days decreased by **2.4 days**, indicating improved inventory management efficiency[102](index=102&type=chunk) [Exchange Rate Risk](index=38&type=section&id=Exchange%20Rate%20Risk) The group primarily conducts business in RMB and uses swap and option foreign exchange instruments to hedge a portion of its future USD-denominated loan repayments - The group primarily conducts business in RMB and uses swap instruments and option foreign exchange instruments to hedge a portion of its future USD-denominated loan repayments[102](index=102&type=chunk) [Sources of Funds and Net Gearing Ratio](index=39&type=section&id=Sources%20of%20Funds%20and%20Net%20Gearing%20Ratio) The net gearing ratio significantly decreased by 513.1 percentage points, indicating an improvement in the group's leverage level Funding Status and Net Gearing Ratio as of June 30, 2025 (RMB million) | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents, Time Deposits and Pledged Bank Deposits | 4,794.0 | 6,468.4 | -1,674.5 | | Loans and Borrowings, Lease Liabilities | 19,192.5 | 21,314.0 | -2,121.5 | | Net Gearing Ratio | 874.7% | 1,387.8% | -513.1 percentage points | - The net gearing ratio significantly decreased by **513.1 percentage points**, indicating an improvement in the group's leverage level[103](index=103&type=chunk) [Pledged Assets](index=39&type=section&id=Pledged%20Assets) Pledged assets, totaling RMB 7,342.4 million, serve as collateral for loans and borrowings used for daily business operations Pledged Assets as of June 30, 2025 (RMB million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Pledged Assets | 7,342.4 | 9,447.0 | - Pledged assets serve as collateral for loans and borrowings, used as working capital for daily business operations[104](index=104&type=chunk) [Foreign Currency Investments](index=39&type=section&id=Foreign%20Currency%20Investments) As of June 30, 2025, the group held no foreign currency investments - As of June 30, 2025, the group held no foreign currency investments[105](index=105&type=chunk) [Employees and Remuneration Policy](index=39&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 5,523 employees with staff costs of RMB 360.2 million, emphasizing talent development, incentive programs, and corporate culture Number of Employees and Staff Costs as of June 30, 2025 (RMB million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 5,523 | 5,672 | | Staff Costs (Six Months) | 360.2 | 395.7 | - The group is dedicated to creating an open, inclusive, and vibrant workplace, focusing on value creation, strengthening performance assessment and incentives, and continuously developing the professional depth and innovation capabilities of management and business personnel through a four-tier training system and specialized training mechanisms[106](index=106&type=chunk)[107](index=107&type=chunk) [Future Outlook and Strategies](index=40&type=section&id=Future%20Outlook%20and%20Strategies) This section outlines the group's future strategic direction, focusing on electrification, internationalization, digitalization, marketization, and refinement, supported by its controlling shareholder [Future Outlook and Strategies](index=40&type=section&id=Future%20Outlook%20and%20Strategies) The group plans to accelerate new energy transformation, expand international business, enhance digitalization, and deepen market-oriented reforms to become a leading integrated automotive service provider - The group will accelerate its new energy transformation and upgrade, using cooperation with relevant mainstream new energy brands as a breakthrough to comprehensively promote the new energy upgrade of its stores; simultaneously, it will actively explore service models such as intelligent connected vehicles based on the achievements of the automotive industry research institute[108](index=108&type=chunk) - In terms of internationalization, the group will use automotive export trade as an entry point, actively strive for domestic main airport export authorizations, overseas local dealership authorizations, and seek overseas localized joint ventures and cooperation to form a comprehensive international business layout[108](index=108&type=chunk) - The group will strengthen digital transformation, promote the construction of an integrated business and finance system, vigorously promote digital intelligence platforms, and launch AI customer service to enhance data analysis and refined customer operations capabilities[109](index=109&type=chunk) - The group will deepen market-oriented reforms, optimize organizational structure, stimulate internal corporate vitality, and steadily advance towards its vision of becoming a "leading integrated service provider in the automotive ecosystem"[109](index=109&type=chunk) [Interim Dividend](index=41&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[109](index=109&type=chunk) [Other Information](index=41&type=section&id=Other%20Information) This section covers additional disclosures, including the review of interim results, new share subscription, mandatory general offer, and corporate governance matters [Review of Interim Results](index=41&type=section&id=Review%20of%20Interim%20Results) The company's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee and KPMG - The company's Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, which were also reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[110](index=110&type=chunk) [Subscription of New Shares Under Specific Mandate and Mandatory General Offer](index=42&type=section&id=Subscription%20of%20New%20Shares%20Under%20Specific%20Mandate%20and%20Mandatory%20General%20Offer) This section details the subscription of new shares by Cinda Auto (Hong Kong) Limited for approximately HKD 1 billion, the use of proceeds, and the subsequent mandatory general offer due to the waiver not being granted - The company entered into a subscription agreement with Cinda Auto (Hong Kong) Limited to allot and issue **6,669,060,524** ordinary shares at a subscription price of **HKD 0.15 per share**, for a total cash consideration of approximately **HKD 1 billion**[111](index=111&type=chunk) - The subscription was completed on June 2, 2025, raising net proceeds of approximately **HKD 997 million** (approximately **RMB 914 million**), planned for increasing working capital, strategic investments or industrial mergers and acquisitions, and repayment of existing debts[112](index=112&type=chunk)[113](index=113&type=chunk) - As of June 30, 2025, **RMB 100 million** had been used for working capital, **RMB 270 million** for debt repayment, with the remaining **RMB 544 million** unutilized[114](index=114&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Except for the connected subscription, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period - Except for the connected subscription, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025[116](index=116&type=chunk) [Events After Reporting Period](index=44&type=section&id=Events%20After%20Reporting%20Period) This section discloses significant events after the reporting period, including the suspension of share trading due to insufficient public float and changes in board members - Following the close of the offer, the company's public float decreased to approximately **9.29%**, failing to meet the minimum public float requirement of **25%** as stipulated in Listing Rule 8.08(1)(a), leading to the suspension of trading in shares on the Stock Exchange starting July 2, 2025[115](index=115&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [Suspension of Trading in Shares](index=44&type=section&id=Suspension%20of%20Trading%20in%20Shares) The company's shares were suspended from trading on July 2, 2025, due to the public float falling below 25%, and the company is seeking a waiver and will announce plans to restore it - The company has applied to the Stock Exchange for a temporary waiver from strict compliance with Listing Rule 8.08(1)(a) and has received resumption guidance, and will issue further announcements regarding the restoration of public float in its shares in due course in accordance with the Listing Rules[115](index=115&type=chunk)[119](index=119&type=chunk) [Changes in Directors](index=45&type=section&id=Changes%20in%20Directors) On July 11, 2025, Mr. Chen Hong resigned as Executive Director, and Mr. Zhuang Zhibo and Mr. Wu Xiaoqiang were appointed as Executive Directors - On July 11, 2025, Mr. Chen Hong resigned as an Executive Director due to work reallocation and ceased to be a member of the company's Environmental, Social and Governance Committee. Mr. Zhuang Zhibo and Mr. Wu Xiaoqiang were appointed as Executive Directors on the same day[120](index=120&type=chunk) [Corporate Governance](index=45&type=section&id=Corporate%20Governance) The group is committed to high standards of corporate governance and confirmed compliance with the Corporate Governance Code during the six months ended June 30, 2025 - The group has always been committed to upholding high standards of corporate governance to protect shareholders' interests and enhance corporate value. For the six months ended June 30, 2025, the company complied with the code provisions set out in Part 2 of the Corporate Governance Code[121](index=121&type=chunk) [Directors' Securities Transactions](index=45&type=section&id=Directors%27%20Securities%20Transactions) The company has adopted a Securities Dealing Code for directors, and all current directors confirmed compliance with both the company's code and the Model Code during the reporting period - The company has adopted a Securities Dealing Code for directors' securities transactions, with standards no less stringent than those set out in the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules. All current directors confirmed their compliance with the Securities Dealing Code and the Model Code throughout the six months ended June 30, 2025[123](index=123&type=chunk) [Publication of Interim Results Announcement](index=46&type=section&id=Publication%20of%20Interim%20Results%20Announcement) The interim results announcement is available on the HKEX and company websites, with the full interim report to be published later - This interim results announcement is available on the websites of Hong Kong Exchanges and Clearing Limited and the company, and the company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be published on the aforementioned websites at a later date[124](index=124&type=chunk) [Acknowledgement](index=46&type=section&id=Acknowledgement) The Board of Directors extends its sincere gratitude to the management team, employees, shareholders, and business partners for their dedication and support - The Board of Directors extends its sincere gratitude to the management team and employees of the group for their commitment and diligence, and to the shareholders and business partners for their strong support of the group[125](index=125&type=chunk)