ZHONGSHENG HLDG(00881)2025-03-28 04:08Financial Performance - For the fiscal year ending December 31, 2024, the total revenue decreased by 6.2% to RMB 168,124.2 million compared to RMB 179,290.1 million in 2023[2]. - The overall net profit for the year was RMB 3,070.9 million, a decline of 38.5% from RMB 4,990.9 million in 2023[3]. - Gross profit for the year was RMB 10,671.9 million, a decline of RMB 3,092.4 million or 22.5% compared to the previous year[27]. - The operating profit was RMB 5,674.5 million, a decrease of RMB 2,665.2 million or 32.0% compared to the previous year[34]. - The company recorded a net profit of RMB 3,070.9 million for the year, a decrease of RMB 1,920.0 million or 38.5% compared to the previous year[23]. - Basic earnings per share for the year was RMB 1.35, down from RMB 2.09 in 2023, reflecting a decline of 35.4%[67]. - The total tax expense for 2024 was RMB 1.03 billion, down from RMB 1.84 billion in 2023, indicating a reduction of about 44%[91]. Sales and Market Performance - New car sales volume fell by 3.2% to 485,307 units, while luxury brand sales decreased by 3.7% to 293,370 units[3]. - The number of used car sales surged by 37.9% to 226,231 units, indicating a strong performance in the used car market[3]. - New car sales revenue was RMB 125,325.6 million, down RMB 14,889.3 million or 10.6%, primarily due to a decline in new car sales volume and average selling prices[24]. - Used car sales revenue increased to RMB 15,417.3 million, up RMB 1,432.5 million or 10.2%, driven by higher sales volume despite a decrease in average selling prices[24]. - The sales volume of new cars priced above RMB 400,000 decreased by nearly 300,000 units to 1 million units, accounting for 4.5% of total sales[19]. - The retail sales of automobiles in 2024 showed a slight increase of approximately 1.0%, indicating downward pressure on car prices[19]. Customer Engagement and Services - Active customer count increased by 10.7% to 4.19 million, with a three-year compound annual growth rate (CAGR) of 9.2% from 2022 to 2024[6]. - In key strategic cities, the active customer base grew by 10.2%, with significant increases in service visits: maintenance up 6.7%, warranty services up 16.1%, and accident repairs up 18.1%[7]. - The company processed 8.05 million core after-sales service entries, marking a 7.8% increase from the previous year, with a three-year CAGR of 7.5%[12]. - The company provided nearly 8 million car wash services in 2024, enhancing customer engagement and service value[13]. Strategic Initiatives and Future Outlook - The company emphasizes a strategic transformation to become a well-known quality automotive service provider in China, focusing on customer-centric services[4]. - The company is strategically positioned to capitalize on the growing demand for high-quality automotive services in the post-market sector[22]. - Forward-looking statements regarding business outlook and financial performance are based on existing data and assumptions, subject to risks and uncertainties[116]. Dividends and Shareholder Information - The company plans to distribute a final dividend of HKD 0.678 per share, pending shareholder approval at the annual general meeting[3]. - The proposed final dividend for 2024 is HKD 0.678 per share, equivalent to approximately RMB 0.634, compared to HKD 0.797 in 2023[102]. - The total proposed final dividend for 2024 amounts to HKD 1,604 million, approximately RMB 1,500 million[112]. Operational Efficiency and Cost Management - Selling and distribution expenses were RMB 7,552.6 million, a decrease of RMB 184.3 million or 2.4% compared to the previous year[31]. - Administrative expenses were RMB 2,229.2 million, down RMB 189.4 million or 7.8% year-over-year due to cost control measures[32]. - The company has no significant acquisitions or future investment plans as of December 31, 2024[60][61]. Inventory and Capital Management - Inventory increased from RMB 16,366.1 million to RMB 18,476.9 million due to a slight increase in new car turnover days[56]. - Average inventory turnover days increased from 31.2 days in 2023 to 35.1 days in 2024, indicating adjustments to inventory levels[57]. - Total capital expenditure for the year ending December 31, 2024, is RMB 1,356.7 million, a decrease from RMB 1,426.5 million in the previous year[55]. Debt and Financing - The company issued zero-coupon convertible bonds with a principal amount of HKD 4,560 million, maturing in 2025, with a conversion price adjusted to HKD 43.88 per share effective from July 4, 2024[49]. - The company issued a total of 966 per $1,000 principal[51]. - The bank loans and other borrowings as of December 31, 2024, amounted to RMB 32,039.2 million, an increase from RMB 28,372.8 million the previous year[46]. Employee and Governance - The number of employees decreased from 31,180 in 2023 to 26,357 in 2024, a reduction of about 15.5%[109]. - The company expressed gratitude to employees and stakeholders for their unwavering support and dedication[115]. - The company has adopted corporate governance codes and has complied with them throughout the reporting period[104].