YONGDA AUTO(03669)2024-08-30 09:54Revenue and Sales Performance - Revenue for the six months ended June 30, 2024 was RMB 31.036 billion, a decrease of 13.0% compared to RMB 35.684 billion for the same period in 2023[2] - New car sales revenue for the six months ended June 30, 2024 was RMB 22.911 billion, a decrease of 15.3% compared to RMB 27.043 billion for the same period in 2023[2] - New car sales in the first half of 2024 were 83,698 units, a year-on-year decrease of 7.4%, with revenue of RMB 23.984 billion and a gross margin of 1.64%[7] - Total revenue for the first half of 2024 decreased to RMB 31,035.83 million from RMB 35,684.38 million in the same period of 2023, a decline of approximately 13%[21] - Revenue for the six months ended June 30, 2024, was RMB 31,035.8 million, a 13.0% decrease compared to RMB 35,684.4 million for the same period in 2023[54] - New car sales revenue for the six months ended June 30, 2024, was RMB 22,910.9 million, a 15.3% decrease compared to RMB 27,043.2 million for the same period in 2023[56] - Luxury and ultra-luxury brand new car sales revenue for the six months ended June 30, 2024, was RMB 19,106.3 million, a 19.3% decrease compared to RMB 23,671.5 million for the same period in 2023[56] - New car sales volume for the six months ended June 30, 2024, was 81,073 units, a 5.5% decrease compared to 85,759 units for the same period in 2023[56] - Luxury and ultra-luxury brand new car sales volume for the six months ended June 30, 2024, was 55,268 units, an 11.2% decrease compared to 62,233 units for the same period in 2023[56] - Used car sales revenue for the six months ended June 30, 2024, was RMB 2,063.8 million, a 15.8% decrease compared to RMB 2,451.9 million for the same period in 2023[56] - After-sales service revenue for the six months ended June 30, 2024, was RMB 4,778.0 million, a 0.3% decrease compared to RMB 4,791.0 million for the same period in 2023[57] - Revenue from new car sales and related services decreased to RMB 23,956,258 thousand in 2024 from RMB 28,174,410 thousand in 2023[31] - Revenue from luxury and ultra-luxury brand new car sales dropped to RMB 19,100,028 thousand in 2024 from RMB 23,637,843 thousand in 2023[31] - Revenue from independent new energy brand new car sales increased significantly to RMB 1,090,529 thousand in 2024 from RMB 529,349 thousand in 2023[31] - Revenue from used car sales and related services decreased to RMB 2,087,418 thousand in 2024 from RMB 2,479,145 thousand in 2023[31] - Revenue from after-sales services remained stable at RMB 4,776,474 thousand in 2024 compared to RMB 4,789,224 thousand in 2023[31] - New car sales and related service revenue for the first half of 2024 was RMB 23,983,885,000, a decrease from RMB 28,251,867,000 in the same period of 2023[36] - Used car sales and related service revenue for the first half of 2024 was RMB 2,087,418,000, down from RMB 2,479,145,000 in the same period of 2023[36] - After-sales service revenue for the first half of 2024 was RMB 4,777,967,000, slightly lower than RMB 4,790,980,000 in the same period of 2023[36] - Total external revenue for the passenger car sales and services segment in the first half of 2024 was RMB 35,442,779,000[35] - Commission income for the six months ended June 30, 2024 was RMB 124.0 million, a decrease of 16.3% compared to RMB 148.2 million for the same period in 2023[58] - Revenue from the car rental services segment for the six months ended June 30, 2024 was RMB 221.0 million, a decrease of 10.6% compared to RMB 247.1 million for the same period in 2023[58] Profit and Loss - Net profit for the six months ended June 30, 2024 was RMB 101 million, a decrease of 76.1% compared to RMB 425 million for the same period in 2023[2] - The company's net profit attributable to owners for the six months ended June 30, 2024 was RMB 111 million, a decrease of 72.6% compared to RMB 407 million for the same period in 2023[3] - Gross profit for the six months ended June 30, 2024 was RMB 2.584 billion, a decrease of 24.5% compared to the same period in 2023[6] - Net profit for the first half of 2024 dropped to RMB 101.45 million, compared to RMB 424.82 million in the first half of 2023, a significant decrease of 76%[21] - Gross profit margin for the first half of 2024 was 8.3%, down from 9.6% in the same period of 2023[21] - Operating profit for the first half of 2024 was RMB 224.18 million, a sharp decline from RMB 667.77 million in the same period of 2023, reflecting the challenging market conditions[21] - Gross profit for the six months ended June 30, 2024 was RMB 2,584.2 million, a decrease of 24.5% compared to RMB 3,422.6 million for the same period in 2023[60] - Gross margin for the six months ended June 30, 2024 was 8.33%, a decrease of 1.26 percentage points compared to 9.59% for the same period in 2023[60] - New car sales and related services gross profit for the six months ended June 30, 2024 was RMB 393.8 million, a decrease of 64.8% compared to RMB 1,119.6 million for the same period in 2023[61] - Used car sales and related services gross profit for the six months ended June 30, 2024 was RMB 139.4 million, a decrease of 25.4% compared to RMB 186.9 million for the same period in 2023[61] - Operating profit for the six months ended June 30, 2024 was RMB 224.2 million, a decrease of 66.4% compared to RMB 667.8 million for the same period in 2023[64] - Profit attributable to owners of the company for the six months ended June 30, 2024 was RMB 111.5 million, a decrease of 72.6% compared to RMB 406.5 million for the same period in 2023[69] - Other income, other gains, and losses for the six months ended June 30, 2024 was a net gain of RMB 60.1 million, a decrease of 49.4% compared to RMB 118.9 million for the same period in 2023[62] - Segment gross profit for the passenger car sales and services segment in the first half of 2024 was RMB 3,355,117,000[35] - Total pre-tax profit for the first half of 2024 was RMB 552,004,000[35] - The company's profit attributable to owners for the six months ended June 30, 2024, was RMB 111,450 thousand, a significant decrease from RMB 406,544 thousand in the same period in 2023[42] Cost and Expense Management - Total sales, administrative expenses, and financing costs for the six months ended June 30, 2024 was RMB 2.568 billion, a decrease of 15.6% compared to the same period in 2023[6] - Distribution and sales expenses and administrative expenses for the six months ended June 30, 2024 was RMB 2,420.2 million, a decrease of 15.8% compared to RMB 2,873.7 million for the same period in 2023[63] - The company implemented cost and expense control measures, reducing sales management expenses through organizational and performance optimizations[82] - Total employee costs for the first half of 2024 were RMB 983,495,000, a decrease from RMB 1,147,472,000 in the same period of 2023[39] - Current tax expenses for the first half of 2024 were RMB 48,929,000, significantly lower than RMB 196,614,000 in the same period of 2023[40] Cash Flow and Financial Position - Net cash generated from operating activities for the six months ended June 30, 2024 was RMB 699 million[3] - Net debt ratio as of June 30, 2024 was 12.5%, remaining stable compared to 12.2% as of December 31, 2023[3] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 699.2 million, a decrease from RMB 1,099.4 million in the same period last year[70] - Net cash used in investing activities for the six months ended June 30, 2024, was RMB 229.9 million, primarily due to the purchase of property, plant, and equipment, and intangible assets[70] - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 1,045.5 million, mainly due to the repayment of borrowings and payment of dividends[71] - Total capital expenditure for the six months ended June 30, 2024, was RMB 330.6 million, primarily for the purchase of property, plant, and equipment, and intangible assets[73] - Total borrowings as of June 30, 2024, decreased by 13.7% to RMB 3,418.2 million compared to December 31, 2023[74] - Net debt ratio as of June 30, 2024, was 12.5%, slightly higher than 12.2% as of December 31, 2023[75] - Total current liabilities decreased to RMB 12,491,341 thousand as of June 30, 2024, from RMB 14,559,392 thousand as of December 31, 2023[24] - Net current assets decreased slightly to RMB 2,793,265 thousand as of June 30, 2024, from RMB 2,931,550 thousand as of December 31, 2023[24] - Total non-current liabilities decreased to RMB 3,519,763 thousand as of June 30, 2024, from RMB 3,735,208 thousand as of December 31, 2023[25] - Total equity decreased marginally to RMB 14,307,453 thousand as of June 30, 2024, from RMB 14,398,451 thousand as of December 31, 2023[26] - The company acquired property, plant, and equipment worth approximately RMB 670,064 thousand during the six months ended June 30, 2024, down from RMB 883,162 thousand in the same period in 2023[43] - The company sold property, plant, and equipment with a book value of approximately RMB 471,265 thousand, generating cash proceeds of RMB 478,639 thousand and a gain of RMB 7,374 thousand during the six months ended June 30, 2024[43] - The company recognized right-of-use assets of approximately RMB 179,120 thousand at the commencement of new lease agreements during the six months ended June 30, 2024, compared to RMB 160,085 thousand in the same period in 2023[44] - The company acquired other intangible assets for a cash consideration of RMB 53,577 thousand during the six months ended June 30, 2024, down from RMB 66,132 thousand in the same period in 2023[45] - The company's inventory as of June 30, 2024, was RMB 3,954,710 thousand, a decrease from RMB 4,363,154 thousand as of December 31, 2023[46] - The company's trade receivables and notes receivable as of June 30, 2024, amounted to RMB 1,030,282 thousand, an increase from RMB 985,819 thousand as of December 31, 2023[48] - The company's prepayments and other receivables as of June 30, 2024, totaled RMB 6,393,946 thousand, up from RMB 6,216,740 thousand as of December 31, 2023[49] - Trade payables as of June 30, 2024, were RMB 917,951 thousand, a decrease from RMB 967,416 thousand as of December 31, 2023[52] - Notes payable as of June 30, 2024, were RMB 6,292,718 thousand, a decrease from RMB 7,380,234 thousand as of December 31, 2023[52] - Trade payables and notes payable aged 0-90 days as of June 30, 2024, were RMB 6,938,825 thousand, a decrease from RMB 7,989,712 thousand as of December 31, 2023[53] - The company provided a guarantee of RMB 210 million for the loan principal balance of Shanghai Yongda Financial Leasing Co., Ltd[76] - The company faces interest rate risk due to fluctuations in the loan market quoted rate (LPR), which could increase borrowing costs[77] Inventory and Asset Management - Inventory turnover days as of June 30, 2024 was 26.7 days[3] - Inventory balance as of June 30, 2024 was RMB 3.955 billion, a decrease of 9.4% compared to the end of 2023[6] - The company's new car inventory turnover days remained healthy at 26.2 days in the first half of 2024[7] - Inventory turnover efficiency remained high in the first half of 2024, with the company strengthening resource integration and collaboration within brands to manage inventory effectively[17] - Inventory turnover days increased to 26.7 days as of June 30, 2024, compared to 24.4 days in the same period last year[72] After-Sales and Maintenance Services - After-sales service revenue in the first half of 2024 was RMB 4.778 billion, a slight decrease of 0.3% year-on-year, with maintenance service revenue increasing by 0.2% to RMB 4.654 billion[8] - The company's maintenance service gross margin in the first half of 2024 was 40.69%, remaining stable compared to the same period in 2023[8] - The zero-service absorption rate in the first half of 2024 was 78.56%, an increase of 11.22 percentage points compared to the same period in 2023[8] Used Car Business - Used car transaction volume in the first half of 2024 was 35,236 units, a year-on-year decrease of 14.2%, with dealer revenue of RMB 2.064 billion and a gross margin of 5.61%[10] - The company plans to enhance the profitability of its used car business by leveraging brand, inventory, and retail capabilities[80] New Energy Vehicle (NEV) Business - New energy vehicle sales in the first half of 2024 were 14,467 units, a year-on-year decrease of 10.9%, with the average selling price increasing to RMB 274,000 and a gross profit per vehicle of RMB 13,100[12] - Independent new energy brand maintenance revenue in the first half of 2024 was RMB 122.65 million, a year-on-year increase of 73.2%, with an average per vehicle output value of RMB 2,958[12] - The company will focus on optimizing the layout and profitability of its new energy vehicle (NEV) network and expanding battery-related services[81] Network and Outlet Management - The company opened 5 new self-built outlets in the first half of 2024, including 1 Xiaomi, 1 Xpeng, 1 Smart, and 2 Zeekr, while closing 9 stores[13] - As of the first half of 2024, the company operates 226 outlets, with luxury brands accounting for 65.5% of the network structure[13] - The company closed 5 net outlets in the first half of 2024, reducing the total number of outlets from 231 to 226, with luxury and ultra-luxury brand outlets decreasing by 4 and mid-to-high-end brand outlets decreasing by 3[14] - The company is accelerating the closure of unprofitable outlets and optimizing its brand network, focusing on luxury and independent new energy brands, while also improving asset utilization efficiency[16] Digital Transformation and Technology - New media platform leads increased by 53% year-over-year in the first half of 2024, driven by the company's efforts in expanding its presence on platforms like Douyin, WeChat Video, and Xiaohongshu[19] - The company is advancing its digital user operation system, aiming to complete the construction of a user asset lifecycle management system by the end of 2024, with AI tools being fully utilized to enhance user operations[20] - The company is accelerating digital transformation, exploring AI, ChatGPT, and digital human technologies to improve operational efficiency[83] - The company is strengthening talent development in NEV, used cars, digitalization, and intelligent technologies to support long-term growth[84] Share Repurchase and Dividends - The company repurchased 39.215 million shares in the first seven months of 2024, using approximately HKD 70 million, exceeding the total repurchases in 2023[82] - The company repurchased 23.715 million shares