YONGDA AUTO(03669)2024-04-26 09:21Financial Performance - In 2023, the company sold 193,945 new vehicles, generating revenue of RMB 56.599 billion, a decrease of 2.8% compared to 2022[16]. - The company's total revenue for 2023, including agency service income, was RMB 74.295 billion, an increase of 1.1% year-on-year, while gross profit was RMB 6.694 billion, a decrease of 15.1%[13]. - Net profit for 2023 was RMB 586 million, a decline of 60.2% compared to the previous year, with attributable net profit of RMB 573 million, down 59.4%[13]. - The gross profit for the twelve months ended December 31, 2023, was RMB 4,994.4 million, a decline of 21.8% from RMB 6,389.3 million in the previous year[61]. - The gross margin decreased to 6.88%, down 1.99 percentage points from 8.87% in the previous year, primarily due to a decline in new car prices[61]. - Operating profit for the twelve months ended December 31, 2023, was RMB 961.5 million, a decrease of 58.3% compared to RMB 2,303.9 million for the same period in 2022[65]. - Profit before tax for the twelve months ended December 31, 2023, was RMB 740.3 million, down 64.3% from RMB 2,072.7 million in the previous year[67]. - Net profit for the twelve months ended December 31, 2023, was RMB 585.8 million, a decline of 60.2% compared to RMB 1,471.3 million for the same period in 2022[69]. Revenue Sources - The after-sales service revenue, including maintenance and extended products, reached RMB 10.543 billion, an increase of 4.4% year-on-year, with a gross margin of 41.53%[16]. - The gross margin for after-sales services was 41.53% in 2023[36]. - Financial agency revenue reached RMB 1.239 billion, up 9.0% year-on-year[33]. - Revenue from new car sales in the luxury and ultra-luxury brand segment was RMB 48,273.9 million, down 4.3% from RMB 50,448.5 million in the previous year[58]. Vehicle Sales and Market Trends - Sales of new energy vehicles reached 32,919 units, a year-on-year increase of 33.8%, accounting for 17.0% of total sales[16]. - The company achieved a used car transaction volume of 93,012 units, a year-on-year increase of 15.1%, with dealership volume growing by 167.3% to 44,590 units[16]. - In 2023, new car sales reached 193,945 units, a year-on-year increase of 1.5%, with a 14.5% increase in sales in the second half compared to the first half[33]. - The Chinese used car transaction volume in 2023 reached 18.413 million units, a year-on-year increase of 14.9%[30]. Inventory and Cash Flow - Inventory balance at the end of 2023 was RMB 4.363 billion, a decrease of 4.2% from the end of 2022, with inventory turnover days maintained at 23.0 days[17]. - The cash generated from operating activities in 2023 was RMB 1.832 billion[32]. - Cash generated from operating activities for the twelve months ended December 31, 2023, was RMB 1,832.2 million, down from RMB 4,232.5 million in the previous year[71]. Strategic Initiatives - The company plans to focus on optimizing brand structure and enhancing store efficiency to ensure stable growth in after-sales services and achieve quality development[20]. - The company aims to strengthen its used car business and accelerate the development of the new energy vehicle industry while implementing cost control measures[20]. - The company is implementing cost control measures, including salary reductions and optimizing operational efficiency[25]. - The company is focusing on digital transformation and the application of new technologies like AI to improve operational efficiency[26]. - The company aims to enhance its second-hand car business as a key growth engine, focusing on brand, sourcing, and retail capabilities[22]. Corporate Governance and Compliance - The company has adopted corporate governance codes and complies with the requirements for information disclosure and corporate governance[144]. - The management team is committed to maintaining high standards of corporate governance and operational efficiency[102]. - The company has confirmed that there are no significant interests held by directors or related entities in any competitive businesses as of December 31, 2023[172]. Environmental and Social Responsibility - The company is committed to resource and energy efficiency, adhering to relevant environmental laws and regulations, and has set long-term goals for energy and water resource usage[138]. - The company emphasizes the importance of environmental protection awareness among employees through recycling and resource-saving initiatives[139]. - The management team emphasized the importance of sustainable practices, aiming for a 40% reduction in carbon emissions by 2025[99]. Future Outlook - The company aims to stabilize new car sales prices while optimizing brand structure and enhancing single-store efficiency in 2024[83]. - The company plans to implement a new customer loyalty program, expected to increase customer retention rates by 15%[99]. - The company has set a future outlook with a revenue guidance of $2 billion for the next fiscal year, indicating a growth target of 20%[99].