Financial Performance - Revenue decreased by approximately 19.8% to about RMB 9,876 million, primarily due to declines in new car sales volume and selling prices [3]. - Overall gross profit decreased by approximately 71.9% to about RMB 177 million, with a gross profit margin decline of 3.3 percentage points to 1.8% [3]. - The net loss for the period was approximately RMB 635 million, compared to a net loss of approximately RMB 386 million in the same period of 2023 [3]. - Basic loss per share was approximately RMB 25, compared to RMB 14 in the same period of 2023 [3]. - Total comprehensive loss for the period was RMB 641.85 million, compared to RMB 393.89 million in the same period of 2023 [5]. - Total revenue for the six months ended June 30, 2024, was RMB 9,875,622,000, a decrease of 19.7% compared to RMB 12,309,565,000 in the same period of 2023 [12]. - Revenue from passenger vehicle sales decreased to RMB 7,657,625,000, down 27.3% from RMB 10,580,807,000 in the same period of 2023 [12]. - The group reported a net loss of approximately RMB 635 million for the six months ended June 30, 2024, compared to a loss of RMB 386 million in the same period of 2023 [75]. Cash Flow and Liquidity - Net cash inflow from operating activities was approximately RMB 147 million, compared to a net outflow of approximately RMB 446 million in the same period last year [3]. - Cash and cash equivalents as of June 30, 2024, were approximately RMB 470 million, a decrease of about RMB 275 million from RMB 745 million as of December 31, 2023 [77]. - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately RMB 5,451 million, a decrease of about RMB 169 million from RMB 5,620 million as of December 31, 2023 [81]. Operational Adjustments - The company plans to maintain its focus on luxury and ultra-luxury brand car sales while implementing operational adjustments and cost reduction measures [2]. - The company plans to enhance operational efficiency and reduce leverage through various methods [82]. - The company is focusing on the development of luxury and ultra-luxury brand automotive sales while optimizing operational quality and innovating marketing strategies [51]. Employee and Costs - Employee costs totaled RMB 367,388 thousand for the six months ended June 30, 2024, compared to RMB 414,472 thousand in the same period of 2023, reflecting a decrease of about 11.4% [15]. - Employee costs for the first half of 2024 were approximately RMB 396 million, compared to RMB 441 million for the same period in 2023 [85]. - The company employed 6,555 employees in China as of June 30, 2024, a decrease from 6,669 employees as of December 31, 2023 [85]. Inventory and Sales - Inventory costs were RMB 9,472,953 thousand for the six months ended June 30, 2024, down from RMB 11,419,654 thousand in the same period of 2023, indicating a decline of approximately 17.0% [17]. - The total inventory as of June 30, 2024, was RMB 3,833,371,000, compared to RMB 3,771,902,000 as of December 31, 2023 [32]. - The average inventory turnover days for the first half of 2024 was 50.4 days, an increase of 1.0 day compared to 49.4 days in the first half of 2023 [79]. - The company's new car sales totaled 26,615 units, representing a year-on-year decline of 12.9%, including 22,679 units of luxury and ultra-luxury brands, which decreased by 13.4% [54]. - The used car market in China saw a total transaction of 9.383 million vehicles in the first half of 2024, an increase of 610,000 vehicles year-on-year, representing a growth of 7% with a total transaction value of RMB 625.212 billion [56]. - The company’s used car sales volume increased by approximately 11% year-on-year as of June 30, 2024 [57]. Revenue Streams - Revenue from after-sales services increased to RMB 1,698,980,000, up 19.1% from RMB 1,425,687,000 in the same period of 2023 [12]. - The group recognized RMB 325,635,000 in revenue from providing mortgage loan services, which was previously not included in revenue reporting [12]. - The automotive finance revenue of the company grew by 108.4% year-on-year as of June 30, 2024 [58]. Financial Instruments and Investments - The company issued perpetual bonds totaling RMB 200 million with an initial annual interest rate of 8.5% on February 28, 2023 [41]. - The company issued two additional perpetual bonds of RMB 100 million each on April 14 and June 12, 2023, with initial interest rates of 8.5% and 8.0% respectively, totaling RMB 200 million [42]. - The company issued perpetual bonds of RMB 350 million and RMB 150 million on November 11 and December 26, 2023, with initial interest rates of 7.2% and 7.0% respectively, totaling RMB 500 million [44]. Legal and Compliance - The company has initiated appeals regarding the first-instance judgment related to equity investment obligations, with ongoing legal proceedings [38]. - The company has not made any provisions for potential liabilities as of June 30, 2024, based on legal opinions and assessments of the situation [48]. Future Outlook - The group expects to continue its operations for at least the next 12 months based on cash flow forecasts and financial support from Xiamen International Trade Holdings Group [10]. - The company is actively exploring opportunities in emerging businesses such as new energy vehicle distribution and after-sales services [87].
正通汽车(01728) - 2024 - 中期业绩