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的內容概不負責，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份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SUNFONDA GROUP HOLDINGS LIMITED 01771 董事會會議召開日期 新豐泰集團控股有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於二零二 五年八月二十九日（星期五）舉行董事會會議，其中議程包括批准刊發本公司及其附屬公 司截至二零二五年六月三十日止六個月之綜合中期業績公告，以及考慮派發中期股息之 建議（如有）。 承董事會命 新豐泰集團控股有限公司 主席 胡德林先生 二零二五年八月十九日 於本公告日期，董事會包括四名執行董事，即胡德林先生、趙敏女士、陳瑋女士及鄧寧 先生；以及三名獨立非執行董事，即劉曉峰博士、韓秦春博士及劉啟明先生。 ...

Core Viewpoint - The article highlights the contrasting experiences of individual car salespeople who can earn high incomes from selling popular new models, while traditional dealerships face significant financial challenges and a wave of closures due to declining profitability and market pressures [9][16][32]. Group 1: Sales Performance and Challenges - In late 2023, the launch of the AITO M9 saw salespeople achieving remarkable sales figures, with one salesperson selling 28 units in a month [6][8]. - Despite the potential for high earnings, the reality for many salespeople is marked by intense work pressure and high turnover rates, as many leave due to the demanding nature of the job [12][15]. - The sales environment is increasingly competitive, with new models from various brands entering the market, yet many salespeople report low sales during off-peak months [10][13]. Group 2: Dealership Financial Struggles - The China Automobile Dealers Association predicts that over 4,400 dealerships will close in 2024, with a loss rate among dealers reaching 41.7% [9][17]. - Price inversion affects 84.4% of dealerships, with over 60.4% experiencing a price drop exceeding 15% [17][18]. - Major dealership groups like Zhongsheng Holdings and Yongda Automotive are experiencing significant declines in new car sales and profitability, with some reporting net profit drops of over 80% [19][20]. Group 3: After-Sales Service as a Revenue Stream - After-sales services are becoming a crucial revenue source for traditional dealerships, with Zhongsheng Holdings reporting a 9.6% increase in after-sales revenue in 2024 [25][26]. - The focus on after-sales services is seen as a potential lifeline for dealerships struggling with new car sales [25][32]. Group 4: Industry Transformation and Future Outlook - The article discusses the need for dealerships to adapt to changing market conditions, emphasizing collaboration with manufacturers and a shift towards after-sales and user engagement strategies [32]. - The success of individual salespeople and mid-sized dealerships in the new energy vehicle market illustrates the potential for growth and adaptation within the industry [30][32]. - The ongoing transformation in the automotive industry highlights the importance of flexibility and innovation for both dealerships and sales personnel to thrive in a competitive landscape [32].

致：香港交易及結算所有限公司 公司名稱: 新豐泰集團控股有限公司 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7月31日 狀態: 新提交 呈交日期: 2025年8月5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) | 01771 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | USD | | 0.0001 | USD | | 100,000 | | 增加 / 減少 (-) | | | 0 | | | | USD | | | | 本月底結存 | | | 1,000,000,000 | USD | | 0.0001 | USD | | 100,000 | 本月底法定/註冊股 ...

Financial Performance - For the year ended December 31, 2024, the company reported a loss attributable to equity holders of RMB 213.0 million, compared to a profit of RMB 11.9 million in 2023[11]. - Revenue for the period was RMB 8,608.9 million, a decrease of 21.6% compared to the same period in 2023, driven by a 15.8% decline in new car sales to 27,107 units[13]. - The gross loss for the period was RMB 29.8 million, with a gross loss margin of 0.3%, down from a gross profit margin of 3.8% in 2023[13]. - The company’s after-sales service revenue decreased by 8.4% to RMB 1,154.2 million, while used car sales revenue increased by 2.3% to RMB 431.5 million[13]. - The company recorded a significant increase in used car transactions, achieving a total of 7,673 units sold during the period[23]. - The company’s pre-tax loss for the period was RMB 187.7 million, compared to a profit of RMB 18.0 million in 2023[13]. - Basic and diluted loss per share attributable to ordinary equity holders was RMB 0.36, compared to earnings of RMB 0.02 per share in 2023[12]. - The group achieved a revenue of RMB 8,608.9 million in 2024, with 37 operational outlets as of December 31, 2024[40]. - The group reported a 12.9% year-over-year increase in renewal policy numbers and a 14.8% increase in premiums, despite a competitive market environment[44]. - The group’s revenue for the year ended December 31, 2024, was RMB 8,608.9 million, a decrease of RMB 2,368.9 million or 21.6% compared to the same period in 2023[52]. - New car sales revenue was RMB 7,023.2 million, down RMB 2,272.4 million or 24.4% year-on-year, accounting for 81.6% of total revenue[52]. - The after-sales service revenue was RMB 1,154.2 million, a decrease of RMB 106.3 million or 8.4% year-on-year, representing 13.4% of total revenue[52]. - The used car sales revenue increased to RMB 431.5 million, up RMB 9.8 million or 2.3% year-on-year, contributing 5.0% to total revenue[52]. - The gross profit from dealership sales of used cars was RMB 20.7 million, an increase of 3.9% year-on-year[47]. - The cost of sales and services for the year was RMB 8,638.7 million, a decrease of RMB 1,919.0 million or 18.2% compared to 2023[55]. - The cost of new car sales was RMB 7,503.5 million, down RMB 1,896.1 million or 20.2% year-on-year[55]. - The company recorded a gross loss of RMB 298 million for the year ended December 31, 2024, compared to a gross profit of RMB 420.1 million for the same period in 2023, primarily due to a decline in new car sales profitability[56]. - The gross loss margin for the year ended December 31, 2024, was 0.3%, down from a gross profit margin of 3.8% in 2023[57]. - Other income and net gains increased by 30.4% to RMB 622.3 million for the year ended December 31, 2024, compared to RMB 477.4 million in 2023, driven by improved commission income from automotive financing agency services[58]. - Selling and distribution expenses decreased by RMB 97.8 million to RMB 445.4 million for the year ended December 31, 2024, a decline of 18.0% from RMB 543.2 million in 2023[59]. - Administrative expenses decreased slightly by RMB 2.7 million to RMB 238.5 million for the year ended December 31, 2024, a decrease of 1.1% from RMB 241.2 million in 2023[60]. - The company reported a loss before tax of RMB 187.7 million for the year ended December 31, 2024, compared to a profit before tax of RMB 18.0 million in 2023[62]. - The net loss for the year ended December 31, 2024, was RMB 213.0 million, a significant decline from a profit of RMB 11.9 million in 2023[65]. - Cash inflow from operating activities increased to RMB 523.2 million for the year ended December 31, 2024, compared to RMB 365.7 million in 2023[67]. - Inventory decreased by 20.8% to RMB 1,011.5 million as of December 31, 2024, down from RMB 1,277.5 million in 2023, reflecting improved inventory management[69]. - The company's bank loans and other borrowings decreased by 18.2% to RMB 2,062.9 million as of December 31, 2024, compared to RMB 2,521.1 million in 2023[70]. - The total capital expenditure for the group amounted to RMB 257.5 million for the year ending December 31, 2024, a decrease of RMB 82.2 million from RMB 339.7 million for the year ending December 31, 2023, representing a reduction of approximately 24.2%[73]. - Employee costs decreased by 17.2% to RMB 319.8 million for the year ending December 31, 2024, down from RMB 386.0 million for the previous year, due to active adjustments in personnel and performance schemes[74]. Market Trends - In 2024, the domestic GDP reached RMB 13,490.84 billion, growing by 5.0% year-on-year[28]. - The total retail sales of consumer goods in 2024 amounted to RMB 4,878.95 billion, an increase of 3.5% compared to the previous year[28]. - In Shaanxi Province, the GDP for 2024 was RMB 3,553.88 billion, with a year-on-year growth of 5.3%[29]. - The retail sales of new energy vehicles in Shaanxi Province increased by 36.9% year-on-year in 2024[29]. - In 2024, the production and sales of new energy vehicles reached 12.89 million and 12.87 million units, respectively, marking year-on-year growth of 34.4% and 35.5%[33]. - The market share of new energy vehicles in total vehicle sales reached 40.9%, up by 9.3 percentage points from 2023[33]. - The total number of motor vehicles in China reached 453 million, with 35.3 million being cars, and new registrations of electric vehicles accounted for 41.83% of total new car registrations[34]. - In 2024, Porsche delivered a total of 310,718 vehicles globally, with 56,887 units delivered to Chinese customers, representing 18.31% of its global market share[34]. - BMW Group's sales in China reached 714,530 units in 2024, maintaining its position as the top luxury car seller in the market[35]. - Mercedes-Benz sold 1.9834 million passenger cars in 2024, with over 714,000 units delivered to Chinese customers, continuing to lead the luxury car market[35]. - Audi's global sales for 2024 reached 1.6712 million vehicles, with over 649,000 units delivered in China, a decrease of approximately 11% year-over-year, accounting for 39% of global sales[36]. - BYD's global sales of new energy vehicles in 2024 totaled 4.27 million units, with passenger car sales increasing by 41.1% year-over-year to 4,250,370 units, making it the top seller in the Chinese automotive market[38]. - The total sales of Seres Group's new energy vehicles in 2024 reached 426,885 units, representing a year-over-year growth of 182.84%, with the Wanjie series accounting for 386,300 units, or 90% of total sales[38]. - In 2025, China's total automobile sales are expected to reach 32.9 million units, a year-on-year increase of 4.7%[86]. - The domestic passenger car market is projected to achieve a total sales volume of 28.9 million units in 2025, reflecting a year-on-year growth of 4.9%[86]. - The sales of new energy vehicles in China are anticipated to reach 16 million units in 2025, representing a year-on-year growth rate of 24.4%[86]. Strategic Initiatives - The company introduced competitive new energy brands, which are expected to become a core growth driver in the future[22]. - The company is focusing on enhancing customer service through the establishment of specialized centers in key cities[23]. - The overall replacement rate for used cars improved year-on-year, indicating a positive trend in the used car business[23]. - The group is focusing on enhancing customer satisfaction and loyalty through a digital management platform and customized services[50]. - The group has expanded its used car business by establishing sales centers in Xi'an, Lanzhou, and Yinchuan, leading to increased sales scale in these regions[48]. - The company is actively enhancing its digital infrastructure, implementing advanced technologies such as electronic work badges and large models[92]. - The company plans to continue expanding its network and collaboration with leading new energy brands in key regions like Shaanxi, Gansu, and Ningxia[88]. - The company is exploring new market opportunities and potential acquisitions to expand its market presence and enhance competitive advantage[94]. - The company plans to continue enhancing its talent reserve and management of human resources to align with business volume changes[74]. - The company is committed to providing ongoing training and professional development for its directors to keep them informed of legal and regulatory developments[125]. Governance and Compliance - The company adheres to the corporate governance code, ensuring compliance and regular reviews to protect shareholder interests[110]. - The board is responsible for overall development and strategic approval, ensuring operational and financial performance monitoring[113]. - Independent non-executive directors are encouraged to actively participate in board meetings, ensuring compliance with listing rules[113]. - The company has mechanisms in place for independent opinions to assist the board in fulfilling its responsibilities[113]. - The board conducted an independence assessment for all directors, with satisfactory results reported[113]. - The board of directors held 4 meetings during the reporting period, discussing and approving the overall strategy and policies of the company[118]. - All directors attended the board meetings with a 100% attendance rate, ensuring active participation in decision-making[119]. - The company has no significant uncertainties that could cast doubt on its ability to continue as a going concern[126]. - The independent non-executive directors are deemed independent and have no relationships that could significantly interfere with their independent judgment[117]. - The company has adopted corporate governance codes to ensure compliance with legal and regulatory requirements[125]. - The board reviewed and approved the audited annual results for the year ending December 31, 2023, and the unaudited interim results for the six months ending June 30, 2024[118]. - The company has established a risk management and internal control system, which was reviewed during the board meetings[118]. - The board consists of 2 female directors and 5 male directors, meeting the requirement of at least one different gender director as per listing rules[129]. - The current gender diversity in the board is 28.57% female, with 25% of senior management being female, and 39.6% of the total workforce being female[132]. - The company has appointed three independent non-executive directors, fulfilling the requirement that they constitute at least one-third of the board[139]. - The audit committee is composed of three independent non-executive directors, responsible for reviewing the financial reporting process and risk management[141]. - The company has established a board diversity policy, which considers various factors such as gender, age, and professional experience in board member selection[129]. - The board has formed four committees: audit, remuneration, nomination, and finance and investment, each with clear written terms of reference[140]. - The company has purchased directors' liability insurance for all directors[128]. - The chairman and CEO positions are separated, with Mr. Hu Delin serving as the chairman and Ms. Zhao Min as the CEO[135]. - The nomination committee is responsible for the selection and appointment of directors, ensuring they possess the necessary skills and experience[133]. - The audit committee held 2 meetings during the reporting period, with a 100% attendance rate from all members present[142]. - The remuneration committee reviewed the remuneration packages for senior management, with 2 individuals earning between RMB 0-500,000 and 1 individual earning between RMB 500,001-1,000,000 for the year ending December 31, 2024[150]. - The nomination committee confirmed the diversity of the board, including two female members and members with deep understanding of automotive dealerships and financial experience[156]. - The finance and investment committee held 1 meeting during the reporting period, with a 100% attendance rate from all members present[158]. - The audit committee reviewed the annual financial statements for the year ending December 31, 2023, and the interim financial statements for the six months ending June 30, 2024[143]. - The remuneration committee recommended the reappointment of Chen Wei as an executive director, along with her remuneration and contract terms[151]. - The finance and investment committee evaluated the independence of independent non-executive directors during the reporting period[159]. - The audit committee discussed the performance and effectiveness of the risk management and internal control systems[143]. - The nomination committee is responsible for identifying and recommending suitable candidates for the board[153]. - The company plans to reappoint external auditors based on the audit committee's recommendations[143]. - The audit fee for the year ending December 31, 2024, is RMB 2,280,000, with no non-audit service fees incurred[167]. - The board has confirmed that the risk management and internal control systems are effective and adequate for the year ending December 31, 2024[170]. - The company held one annual general meeting on May 30, 2024, with a 100% attendance rate from all executive directors[175]. - The company has implemented a series of risk management measures, including property protection control and performance evaluation control, to keep risks within acceptable limits[171]. - The company has adopted a written guideline for employees regarding securities trading, which is as stringent as the standard code[167]. - The company has established a management system for insider information to ensure compliance with disclosure regulations[172]. - The company emphasizes effective communication with shareholders through various channels, including annual meetings and performance briefings[173]. - The company has conducted professional training for the company secretary, totaling no less than 15 hours for the year[165]. - The board has reviewed the effectiveness of the risk management and internal control systems once during the reporting period[170]. - The company has adopted a policy to ensure timely disclosure of information to facilitate informed investment decisions by shareholders[173]. - The company plans to distribute dividends not exceeding 30% of distributable profits for each financial year, subject to board discretion based on financial performance and cash flow[181]. - The company remains committed to enhancing environmental performance and implementing energy-saving measures in its operations[191]. - The company operates in a highly regulated industry, requiring various licenses and permits for automotive dealership and maintenance services[193]. - The company provides a comprehensive range of automotive sales and services, including after-sales services and value-added services[190]. - The board emphasizes effective communication with shareholders and encourages active participation in company affairs[182]. - The company has established multiple channels for ongoing dialogue with shareholders, including announcements and a corporate website[183][184]. - The company has not reported any significant legal or regulatory violations that could adversely impact its operations as of December 31, 2024[193]. - The company continues to focus on risk management and has discussed major risks and uncertainties faced during the financial year[189]. - The company’s main business nature has not undergone significant changes during the financial year ending December 31, 2024[188]. - The board has reviewed the implementation of the shareholder communication policy and found the results satisfactory[182]. - The company will hold its 2025 Annual General Meeting on May 28, 2025, with a suspension of share transfer registration from May 23 to May 28, 2025[196]. - The board has decided not to recommend any final dividend for the year ending December 31, 2024[197]. - Details regarding changes in property, plant, and equipment for the year are included in the financial statements note 13[198]. - As of the report date, the company's authorized share capital is $100,000.00, divided into 1,000,000,000 shares with a par value of $0.0001 each, with no changes in issued shares during the year[199]. - Changes in reserves for the company and the group during the year are detailed in financial statements notes 42 and 32, with distributable reserves for shareholders also outlined in these notes[200].

Financial Performance - For the year ended December 31, 2024, the company reported a loss attributable to equity holders of RMB 213.0 million, compared to a profit of RMB 11.9 million in 2023[3]. - Revenue for the period was RMB 8,608.9 million, a decrease of 21.6% compared to RMB 10,977.8 million in 2023[4]. - New car sales volume decreased by 15.8% to 27,107 units, with sales revenue declining by 24.4% to RMB 7,023.2 million[4]. - The gross loss for the period was RMB 29.8 million, resulting in a gross loss margin of 0.3%, down from a gross profit margin of 3.8% in 2023[4]. - The company recorded a pre-tax loss of RMB 187.7 million, compared to a profit of RMB 18.0 million in the previous year[4]. - Basic and diluted loss per share was RMB 0.36, compared to earnings of RMB 0.02 per share in 2023[6]. - The company experienced a net loss of RMB 213.0 million for the year, compared to a profit of RMB 11.9 million in 2023[69][70]. - The company reported a pre-tax loss of RMB 187.7 million for the year, compared to a pre-tax profit of RMB 18.0 million in 2023[67]. Revenue Breakdown - Total revenue for 2024 was RMB 8,608,890, a decrease of 21.5% from RMB 10,977,823 in 2023[20]. - Revenue from automobile sales in 2024 was RMB 7,454,640, down 23.2% from RMB 9,717,294 in 2023[20]. - After-sales service revenue for 2024 was RMB 1,154,250, a decline of 8.4% from RMB 1,260,529 in 2023[20]. - New car sales revenue amounted to RMB 7,023.2 million, down RMB 2,272.4 million or 24.4% year-on-year, accounting for 81.6% of total revenue[58]. - Other income for 2024 totaled RMB 622,290, an increase of 30.3% from RMB 477,408 in 2023[23]. Assets and Liabilities - Total assets decreased to RMB 5,665.2 million from RMB 5,823.2 million in 2023, reflecting a decline in both non-current and current assets[8]. - Current liabilities decreased to RMB 2,878.9 million from RMB 3,058.1 million in 2023, indicating improved liquidity management[8]. - The company’s net asset value was RMB 2,253.997 million, down from RMB 2,462.848 million in 2023[9]. - The total inventory as of December 31, 2024, was RMB 1,011,521,000, down from RMB 1,277,491,000 in 2023, showing a decrease of approximately 20.9%[30]. - Accounts receivable increased to RMB 40,536,000 in 2024 from RMB 37,307,000 in 2023, representing a growth of about 6.6%[31]. - The total accounts payable and notes payable rose to RMB 953,153,000 in 2024, up from RMB 823,280,000 in 2023, marking an increase of approximately 15.8%[34]. Operational Highlights - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming fiscal year[10]. - The company has secured brand authorizations for traditional and new energy vehicles in multiple regions, enhancing its market presence[57]. - The company is actively promoting technical diagnostics and improving key spare parts penetration to strengthen its brand image[49]. - The company aims to enhance customer satisfaction and loyalty through a digital management platform, focusing on customer lifecycle touchpoints[56]. - The company is expanding its product offerings in the automotive financial sector, including flexible loan plans and personalized insurance packages[47]. Market Trends - The economic growth in Shaanxi Province, where the company primarily operates, was 5.3% in 2024, with retail sales of consumer goods increasing by 4.8%[37]. - The retail sales of new energy vehicles in Shaanxi Province surged by 36.9%, indicating a strong market trend towards green consumption[37]. - In 2024, China's automotive production and sales reached 31.28 million and 31.44 million units, respectively, representing year-on-year growth of 3.7% and 4.5%[38]. - The domestic sales of new energy passenger cars reached 11.05 million units, a year-on-year increase of 40.2%, representing 48.9% of total domestic passenger car sales[40]. - The sales of new energy vehicles in China are anticipated to reach 16 million units in 2025, reflecting a year-on-year growth rate of 24.4%[85]. Future Outlook - The forecast for China's economic growth in 2025 is around 4.5%, with potential to reach 5% if necessary economic expansion measures are implemented[82]. - The company plans to continue promoting consumption and investment efficiency as part of the national strategy to boost domestic demand in 2025[83]. - The company is focusing on expanding its collaboration with leading new energy brands and enhancing its network of dealerships in key regions[88]. Corporate Governance - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting period[94][95]. - The board consists of four executive directors and three independent non-executive directors[108]. - The company expresses gratitude to its management team, employees, customers, business partners, and shareholders for their ongoing support[106]. Miscellaneous - The company did not declare or pay any dividends for the years ended December 31, 2024, and 2023[28]. - There were no significant litigations or arbitrations involving the group during the year ending December 31, 2024[97]. - The company has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2024[96].

Revenue and Sales Performance - Revenue for the period from January 1, 2024, to June 30, 2024, was RMB 4,515.1 million, a decrease of 14.3% compared to the same period in 2023[16] - New car sales volume decreased by 5.5% to 14,079 units, with new car sales revenue declining by 17.2% to RMB 3,703.2 million[16] - After-sales service revenue decreased by 3.9% to RMB 596.3 million[16] - Second-hand car sales revenue increased by 20.2% to RMB 215.7 million[16] - New car sales reached 34,000 units, with a year-on-year growth rate of 0.8%[18] - Revenue for the period was RMB 12,000 million, reflecting a year-on-year growth rate of 0.5%[18] - The group reported revenue of RMB 4,515.1 million and gross profit of RMB 11.3 million for H1 2024[25] - New vehicle sales decreased by 5.5% year-on-year, totaling 14,079 units in H1 2024[26] - Revenue from automobile sales amounted to RMB 3,918,879, down from RMB 4,650,376, reflecting a decline of 15.7%[124] Profitability and Losses - Gross profit for the period was RMB 11.3 million, a decrease of 95.8% compared to the same period in 2023[16] - Gross margin was 0.2%, down from 5.1% in the same period of 2023[16] - Loss before tax for the period was RMB 96.3 million, compared to a profit of RMB 14.8 million in the same period of 2023[16] - Loss attributable to equity holders of the parent was RMB 96.9 million, compared to a profit of RMB 8.2 million in the same period of 2023[16] - Basic and diluted loss per share attributable to ordinary equity holders of the parent was RMB 0.16, compared to earnings of RMB 0.01 in the same period of 2023[16] - The operating loss for the six months ended June 30, 2024, was RMB 47,101 thousand, compared to an operating profit of RMB 66,525 thousand in 2023[104] - The net loss for the period was RMB 96.9 million, a decrease of RMB 105.1 million compared to a net profit of RMB 8.2 million in the same period of 2023[50] - The company reported a loss of RMB 96,866 thousand for the six months ended June 30, 2024, compared to a profit of RMB 8,207 thousand for the same period in 2023, marking a significant shift in performance[113] Economic and Market Context - In the first half of 2024, the national GDP was RMB 616,836 million, with a year-on-year growth of 5.0%[20] - The retail sales of passenger cars in China reached 9.841 million units in the first half of 2024, a year-on-year increase of 3.3%[21] - The cumulative retail sales of new energy passenger vehicles in the first half of 2024 were 4.111 million units, up 33.1% year-on-year[22] - The total number of motor vehicles in China reached 440 million by the end of June 2024, with 34.5 million being electric vehicles[22] - The average disposable income per capita in China was RMB 20,733, with a nominal year-on-year growth of 5.4%[20] - The actual GDP growth rate in China is expected to reach 5.2% for the year, exceeding the target of around 5%, with stable economic performance anticipated in the second half of the year[67] Operational Efficiency and Cost Management - The cost of sales and services for the period was RMB 4,503.9 million, a decrease of RMB 501.1 million or 10.0% compared to 2023[40] - Sales and distribution expenses for the period were RMB 234.6 million, a decrease of RMB 37.4 million or 13.8% compared to RMB 272.0 million in the same period of 2023, maintaining 5.2% of revenue[44] - Administrative expenses amounted to RMB 120.9 million, down RMB 17.1 million or 12.4% from RMB 138.0 million in the same period of 2023, increasing to 2.7% of revenue from 2.6%[45] - Financing costs decreased to RMB 49.2 million, a reduction of RMB 2.5 million or 4.8% from RMB 51.7 million in the same period of 2023[46] - The group increased the contribution of horizontal business by 3.35 percentage points year-on-year, mitigating the impact of new car price reductions on profits[27] Inventory and Asset Management - Inventory decreased by 12.2% to RMB 1,121.7 million from RMB 1,277.5 million as of December 31, 2023, due to improved inventory management[55] - Total inventory as of June 30, 2024, was valued at RMB 493,379,000, a decrease from RMB 665,455,000 as of December 31, 2023[138] - The group had bank loans and other borrowings totaling RMB 2,240,694,000 as of June 30, 2024, down from RMB 2,521,102,000 as of December 31, 2023[144] Employee and Management Insights - The group employed 2,803 employees as of June 30, 2024, a decrease of 14.2% from 3,156 employees on December 31, 2023, resulting in employee costs reducing from RMB 202.1 million to RMB 173.4 million[62] - Employee benefits expenses totaled RMB 148,569, down 14.3% from RMB 173,405 in the previous year[127] - The total remuneration for key management personnel amounted to RMB 4,020,000 for the six months ended June 30, 2024, an increase from RMB 2,285,000 in the same period of 2023, representing a growth of 76.2%[157] Strategic Initiatives and Future Outlook - The group is focusing on enhancing its customer ecosystem through a digital management platform to improve customer retention and profitability[34] - The group plans to increase the number of new energy brand outlets in key cities, having secured authorization for two 4S stores in Xi'an and additional centers in Lanzhou and Yinchuan[70] - The group is actively adjusting its operational strategy in response to market changes, including asset restructuring in non-advantageous areas to maintain cash flow amid intensified competition[70] - The group anticipates that favorable policies such as trade-in programs and the introduction of new vehicle models will help stimulate market demand in the second half of 2024[71] Corporate Governance and Shareholder Information - The board believes that effective corporate governance practices are crucial for the group's development and shareholder protection[93] - The company’s total issued share capital as of June 30, 2024, was $100,000, divided into 1,000,000,000 shares, with 600,000,000 shares issued and fully paid[76] - The company does not intend to adopt a new share option scheme following the expiration of the existing scheme on January 17, 2024[86] - The board does not recommend any interim dividend for the six months ending June 30, 2024, consistent with the previous year[92]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 4,515.1 million, a decrease of 14.3% compared to the same period in 2023[1] - New car sales decreased by 5.5% to 14,079 units, with new car sales revenue declining by 17.2% to RMB 3,703.2 million[1] - Gross profit for the period was RMB 11.3 million, a significant decline of 95.8% compared to RMB 266.2 million in the same period of 2023[1] - The company reported a loss before tax of RMB 96.3 million, compared to a profit of RMB 14.8 million in the same period of 2023[1] - The basic and diluted loss per share attributable to ordinary equity holders of the parent was RMB 0.16, compared to earnings of RMB 0.01 in the same period of 2023[2] - Total comprehensive loss for the period was RMB 96.1 million, compared to a total comprehensive income of RMB 9.5 million in the same period of 2023[3] - The company reported a loss of RMB 96,866 thousand for the six months ended June 30, 2024, compared to a profit of RMB 8,207 thousand for the same period in 2023[7] - For the six months ended June 30, 2024, the company reported a loss attributable to ordinary equity holders of RMB (96,866) thousand, compared to a profit of RMB 8,207 thousand for the same period in 2023[23] - The basic and diluted loss per share for the six months ended June 30, 2024, was RMB (0.16), compared to earnings of RMB 0.01 per share for the same period in 2023[23] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 2,566.5 million, down from RMB 2,648.2 million as of December 31, 2023[4] - Current assets decreased to RMB 3,282.7 million from RMB 3,675.0 million as of December 31, 2023[4] - Total liabilities decreased to RMB 3,176.4 million from RMB 3,265.1 million as of December 31, 2023[5] - The company's equity attributable to owners of the parent decreased to RMB 2,369.6 million from RMB 2,462.5 million as of December 31, 2023[6] - As of June 30, 2024, total inventory was RMB 1,121,745 thousand, a decrease from RMB 1,277,491 thousand as of December 31, 2023[24] - Trade receivables as of June 30, 2024, amounted to RMB 34,336 thousand, down from RMB 37,307 thousand as of December 31, 2023[25] - Prepayments and other receivables totaled RMB 966,641 thousand as of June 30, 2024, compared to RMB 1,016,344 thousand as of December 31, 2023[26] - Bank loans and other borrowings as of June 30, 2024, were RMB 2,240,694 thousand, a decrease from RMB 2,521,102 thousand as of December 31, 2023[27] - The total liabilities, including bank loans and other borrowings, decreased to RMB 2,240,694,000 as of June 30, 2024, down 11.1% from RMB 2,521,102,000 as of December 31, 2023[28] Operational Efficiency - The company improved operational efficiency through process optimization and cost control, resulting in a 3.35 percentage point increase in the contribution of ancillary services[38] - Employee benefits expenses for the six months ended June 30, 2024, totaled RMB 148,569 thousand, down from RMB 173,405 thousand in the same period of 2023, reflecting a decrease of 14.4%[15] - Sales and distribution expenses for the period were RMB 234.6 million, a decrease of RMB 37.4 million or 13.8% compared to RMB 272.0 million in the same period of 2023, maintaining 5.2% of revenue[51] - Administrative expenses amounted to RMB 120.9 million, down RMB 17.1 million or 12.4% from RMB 138.0 million in the same period of 2023, increasing to 2.7% of revenue from 2.6%[52] - Financing costs decreased to RMB 49.2 million, a reduction of RMB 2.5 million or 4.8% from RMB 51.7 million in the same period of 2023[53] Market Trends - In the first half of 2024, the national GDP reached RMB 61,683.6 billion, with a year-on-year growth of 5.0%[35] - The automotive market in China saw a total retail sales volume of 9.841 million vehicles in the first half of 2024, reflecting a year-on-year increase of 3.3%[36] - The production and sales of passenger vehicles in China reached 11.886 million and 11.979 million units respectively in the first half of 2024, with year-on-year growth of 5.4% and 6.3%[36] - The retail sales of new energy vehicles in China increased by 33.1% year-on-year, totaling 4.111 million units in the first half of 2024[36] - The group anticipates a stable growth in the passenger car market in the second half of 2024, driven by favorable policies and new model launches[68] Strategic Initiatives - The company plans to optimize market expectations and product structure based on the performance in the first half of 2024[36] - The group is actively optimizing its brand layout to adapt to market changes and enhance competitiveness amid intense market competition[69] - The group has initiated partnerships with key new energy brands to optimize its brand network layout and improve resource utilization[46] - The group has expanded its private traffic user pool, with registered users in the membership center reaching 338,000[70] - The group has implemented an AI-based intelligent customer service system, improving service efficiency and customer satisfaction[70] Sales Performance - The automotive financial agency business saw a revenue increase of 66.5% year-on-year in the first half of 2024, enhancing customer lifecycle value[40] - After-sales service revenue was RMB 596.3 million in the first half of 2024, a decrease of 3.9% compared to RMB 620.8 million in the same period of 2023[42] - The group reported revenue of RMB 4,515.1 million and gross profit of RMB 11.3 million in the first half of 2024, with new car sales declining by 5.5% year-on-year to 14,079 units[38] - New car sales revenue was RMB 3,703.2 million, down RMB 767.8 million or 17.2% year-on-year, while used car sales revenue increased by RMB 36.3 million or 20.2% to RMB 215.7 million[47] - The used car business achieved a total of 1,479 units sold, representing a year-on-year increase of 19.3%, with a gross margin increase of 0.2 percentage points[43] Dividends and Shareholder Returns - The company did not declare or pay any interim dividends for the period ended June 30, 2024[20] - The board does not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous period[72] Legal and Compliance - The group has not been involved in any significant litigation or arbitration during the reporting period[75] - The audit committee reviewed the company's accounting standards and practices without any disagreements regarding the accounting treatment adopted[77]

Financial Performance - For the year ended December 31, 2023, the company recorded a profit attributable to equity holders of RMB 11.9 million, a decrease of 85.4% compared to RMB 81.3 million in 2022[10]. - Revenue for the period was RMB 10,977.8 million, representing a growth of 0.5% year-on-year, with new car sales increasing by 0.8% to 32,204 units[12]. - The gross profit was RMB 420.1 million, a decline of 41.3% from the previous year, resulting in a gross margin of 3.8% compared to 6.6% in 2022[12]. - The pre-tax profit for the period decreased by 86.1% to RMB 18.0 million, down from RMB 129.4 million in 2022[12]. - Basic and diluted earnings per share attributable to ordinary equity holders were RMB 0.02, down from RMB 0.14 in 2022[11]. - The cost of sales and services increased by 3.4% to RMB 10,557.7 million, with new car sales costs rising by 2.2% to RMB 9,399.6 million[73]. - Other income and net gains increased by 69.8% to RMB 477.4 million, primarily due to higher commission income from automotive financing[78]. - Cash inflow from operating activities increased to RMB 365.7 million from RMB 113.3 million in 2022, attributed to reduced inventory procurement[87]. - As of December 31, 2023, the company's current assets net value was RMB 616.9 million, up from RMB 376.8 million in 2022[91]. - The group's total capital expenditure for the year ended December 31, 2023, was RMB 339.7 million, a decrease of RMB 169.7 million compared to RMB 509.4 million for the year ended December 31, 2022[99]. Sales and Market Trends - The company’s sales revenue from after-sales services rose by 10.4% to RMB 1,260.5 million, while used car sales revenue increased by 15.8% to RMB 421.7 million[12]. - The sales volume of new energy vehicles increased by 33%, accounting for 6.6% of total new car sales during the period[22]. - The total retail sales of automobiles in China reached RMB 48,614 billion, marking a 5.9% year-on-year growth[30]. - The market for new energy vehicles in China saw a production and sales volume exceeding 9 million units, with a market share surpassing 30%[35]. - The company plans to continue expanding its second-hand car business by enhancing customer development and integrating resources across its national dealership network[24]. - The company anticipates a steady increase in the number of consumers for new energy vehicles in the future[22]. Competitive Landscape - The company faced intensified competition in the automotive market, with a price war extending from new energy vehicles to traditional fuel vehicles[21]. - The company benefited from government support policies aimed at boosting automotive consumption, including the distribution of consumption vouchers and tax subsidies[22]. - The luxury car market position steadily improved, with the introduction of new electric vehicle brands to adapt to market changes[24]. Operational Efficiency - The average turnover days for used cars was only 14 days, indicating healthy operations[56]. - The group achieved a 3.3% year-on-year increase in used car replacement rate, with a total transaction volume of 7,380 vehicles, up 5.7%[58]. - The group reported an 18% increase in accident repair revenue compared to 2022, driven by enhanced customer management and service quality[52]. - The number of renewal insurance policies increased by 8.1% year-over-year, with premiums rising by 6%[52]. Management and Governance - The company was founded in November 2000 by Mr. Hu Delin and Ms. Zhao Min, who currently serve as the Chairman and CEO respectively[129][130]. - The company has a strong management team with over 24 years of experience in accounting and financial management, led by Executive Director Ms. Chen Wei[132]. - The company has established strong relationships with automotive suppliers, which is crucial for its business development strategy[129]. - The board of directors includes members with significant experience in corporate finance and governance, ensuring robust oversight and strategic direction[138]. - The company has a strong governance framework in place, adhering to the Corporate Governance Code as per the Hong Kong Stock Exchange rules, ensuring compliance and regular reviews[147]. Future Outlook - The group anticipates a rebound in the Chinese economy in 2024, with GDP growth projected to reach around 5%[111]. - In 2024, the total retail sales of passenger cars in China are expected to reach 22.2 million units, a 3% increase from 2023[116]. - The wholesale sales of new energy vehicles are projected to reach 11 million units in 2024, with a net increase of 2.3 million units, representing a 22% year-on-year growth and a penetration rate of 40%[116]. - The company plans to officially launch its new luxury brand network in the third quarter of 2024, further solidifying its market position in Shaanxi province[121]. Diversity and Inclusion - The board consists of 2 female directors and 5 male directors, achieving a gender diversity ratio of 28.57%[171]. - The senior management team includes 1 female executive, representing 33.33% of the senior management[173]. - The company has a total of 1,234 female employees, accounting for 39.1% of the entire workforce[173]. - The board has established a diversity policy to enhance performance, considering factors such as gender, age, cultural background, and professional experience[170].

Financial Performance - For the year ended December 31, 2023, the group recorded revenue of RMB 10,977.8 million, an increase of 0.5% compared to the same period in 2022[3]. - New car sales volume increased by 0.8% to 32,204 units, while new car sales revenue decreased by 1.3% to RMB 9,295.6 million[3]. - After-sales service revenue rose by 10.4% to RMB 1,260.5 million, and used car sales revenue increased by 15.8% to RMB 421.7 million[3]. - Gross profit was RMB 420.1 million, a decrease of 41.3% compared to 2022, with a gross margin of 3.8% (2022: 6.6%)[3]. - Profit before tax decreased by 86.1% to RMB 18.0 million (2022: RMB 129.4 million)[3]. - Profit attributable to equity holders of the parent decreased by 85.4% to RMB 11.9 million (2022: RMB 81.3 million)[3]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent was RMB 0.02 (2022: RMB 0.14)[3]. - Total comprehensive income for the year was RMB 10,583 million, down from RMB 87,336 million in 2022[11]. - The group achieved operating revenue of RMB 10,977.8 million and operating gross profit of RMB 420.1 million in 2023[85]. - The gross profit for the year ended December 31, 2023, was RMB 420.1 million, a decrease of RMB 295.6 million or 41.3% compared to the same period in 2022[110]. - The gross profit margin for the year ended December 31, 2023, was 3.8%, down from 6.6% in 2022[111]. Assets and Liabilities - Non-current assets totaled RMB 2,648.2 million, an increase from RMB 2,538.0 million in 2022[14]. - Current assets amounted to RMB 3,675.0 million, compared to RMB 3,375.5 million in 2022[14]. - The company's total liabilities for accounts payable and notes payable increased to RMB 823,280,000 in 2023, compared to RMB 481,310,000 in 2022[66]. - The capital debt ratio as of December 31, 2023, was 49.2%, up from 47.2% in 2022[132]. - As of December 31, 2023, the group has pledged assets totaling RMB 1,843.1 million, including RMB 665.5 million in inventory and RMB 374.6 million in property, plant, and equipment[134]. Cash Flow - The net cash outflow from investment activities for the year ended December 31, 2023, was RMB 209.7 million, reduced from RMB 307.5 million in 2022[121]. - The net cash inflow from operating activities for the year ended December 31, 2023, was RMB 365.7 million, an increase from RMB 113.3 million in 2022[127]. Expenses - Employee benefits expenses, including compensation for directors and key management personnel, totaled RMB 56,165,000 in 2023, compared to RMB 50,722,000 in 2022, reflecting an increase of approximately 10%[41]. - Selling and distribution expenses for the year ended December 31, 2023, were RMB 543.2 million, an increase of RMB 35.7 million or 7.0% compared to RMB 507.5 million in 2022[113]. - Administrative expenses decreased to RMB 241.2 million for the year ended December 31, 2023, down RMB 11.5 million or 4.6% from RMB 252.7 million in 2022[115]. Market and Economic Context - The total production and sales of automobiles in China reached 30.16 million and 30.09 million units respectively in 2023, marking a year-on-year growth of 11.6% and 12%[75]. - The retail sales of passenger vehicles in China increased by 5.6% year-on-year, totaling 21.70 million units in 2023[75]. - The number of new registered electric vehicles in China reached 7.43 million in 2023, accounting for 30.25% of new vehicle registrations, a 38.76% increase from 2022[78]. - The Chinese economy is expected to grow by approximately 5% in 2024, with a focus on high-quality development and increased domestic demand[141]. - The total retail sales of passenger vehicles in China are projected to reach 22.2 million units in 2024, representing a 3% increase from 2023, with the new energy vehicle market expected to grow by 22%[145]. Strategic Initiatives - The group plans to launch over 15 new and next-generation products in the Chinese market in 2024, focusing on a dual fuel strategy[82]. - The group aims to enhance its second-hand car business as a new profit growth point, focusing on compliance and profit maximization[93]. - The group is focusing on enhancing customer loyalty and satisfaction through improved customer relationship management[97]. - The group has established a new used car certification system to drive retail business growth and related services[95]. - The group plans to focus on digital marketing strategies and enhance customer interaction through personalized services to improve customer satisfaction and loyalty[161]. Governance and Corporate Structure - The board believes that effective corporate governance is crucial for the group's development and shareholder rights[162]. - The board includes four executive directors and three independent non-executive directors, indicating a diverse governance structure[176]. - The group has not been involved in any major litigation or arbitration during the year ending December 31, 2023[165]. Future Outlook - The group anticipates that the price war in the new energy vehicle market will continue into 2024 due to declining lithium carbonate and battery prices[147]. - Forward-looking statements regarding business outlook, financial performance estimates, and development strategies are included, based on existing data[176]. - The forward-looking statements are subject to risks and uncertainties, and should not be overly relied upon by shareholders and potential investors[176].

Financial Performance - As of June 30, 2023, the company reported a basic and diluted earnings per share of RMB 0.01, a decrease of 92.31% compared to RMB 0.13 for the same period in 2022[20]. - The company reported a profit attributable to equity holders of the parent of RMB 77,825,000 for the six months ended June 30, 2023, compared to RMB 8,207,000 for the same period in 2022, indicating a significant increase[47]. - Net profit attributable to the parent company decreased by 89.5% to RMB 8.2 million, down from RMB 77.8 million in the same period of 2022[105]. - Profit before tax dropped by 88.0% to RMB 14.8 million, down from RMB 123.1 million in the same period of 2022[79]. - Income tax expense for the period was RMB 6.6 million, a decrease of RMB 38.6 million or 85.4% from RMB 45.2 million in the same period of 2022, with an effective tax rate of approximately 44.5%[188]. Revenue and Sales - Operating revenue was RMB 5,271.2 million, an increase of 2.2% compared to the same period in 2022[103]. - New car sales increased by 3.7% to 14,891 units, while new car sales revenue grew by 0.9% to RMB 4,471.0 million[77]. - After-sales service revenue increased by 14.5% to RMB 620.8 million[103]. - The second-hand car sales revenue was RMB 179.4 million, reflecting a decrease of 2.0% year-on-year[133]. - The total transaction volume of second-hand cars in the first half of 2023 was 8,768,600 units, a year-on-year increase of 15.6%[117]. Costs and Expenses - The cost of sales and services for the period was RMB 5,005.0 million, an increase of RMB 265.1 million or 5.6% compared to the same period in 2022, primarily due to increased new car sales and after-sales service business scale[135]. - The gross profit for the period was RMB 266.2 million, a decrease of RMB 150.3 million or 36.1% compared to the same period in 2022, mainly due to macroeconomic conditions and intense competition in the automotive market[182]. - Employee costs increased by 20.1% to RMB 202.1 million from RMB 168.3 million in the same period of 2022, due to adjustments in salary structure and performance bonuses[196]. - Administrative expenses for the period were RMB 138.0 million, an increase of RMB 9.6 million or 7.5% compared to RMB 128.4 million in the same period of 2022, representing 2.6% of revenue, up from 2.5%[185]. Assets and Liabilities - The total inventory value as of June 30, 2023, was approximately RMB 1,263,964,000, down from RMB 1,346,879,000 as of December 31, 2022[17]. - The company’s total liabilities decreased from RMB 2,481,133,000 to RMB 2,319,489,000, showing a reduction of 6.5%[39]. - The company’s accounts receivable as of June 30, 2023, was RMB 46,980,000, up from RMB 37,641,000 as of December 31, 2022[30]. - The total accounts payable and notes payable as of June 30, 2023, amounted to RMB 828,592,000, an increase from RMB 481,310,000 as of December 31, 2022[28]. - The company’s total assets pledged as collateral for bank loans and other borrowings amounted to approximately RMB 617,786,000 as of June 30, 2023, down from RMB 664,603,000 as of December 31, 2022[17]. Market and Economic Conditions - The overall economic recovery in the first half of 2023 was supported by various consumption promotion policies and new vehicle launches[112]. - The macroeconomic recovery is expected to further stimulate consumer demand in the automotive market, supporting stable growth for the industry[118]. - The government has announced continued tax incentives for new energy vehicles, aiming to boost consumption and industry competitiveness[142]. Strategic Initiatives - The Group is focusing on enhancing its second-hand car business as a core strategic area, improving assessment, pricing, and disposal capabilities to ensure compliance and maximize benefits[152]. - The Group is leveraging new media and online marketing strategies to enhance sales scale and customer engagement[148]. - The company is actively expanding its brand network, with new centers established in Xi'an and Beijing to enhance its market presence[132].