喜相逢集团(02473) - 2025 - 中期业绩

Financial Summary Financial Summary This section provides key financial data for the first half of 2025, highlighting revenue, gross profit, profit before income tax, and profit for the period 2025 H1 Key Financial Data | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 769,151 | 658,651 | 16.8% | | Gross Profit | 230,874 | 209,260 | 10.3% | | Profit Before Income Tax | 27,920 | 27,064 | 3.2% | | Profit for the Period | 22,570 | 19,479 | 15.9% | Management Discussion and Analysis Introduction Xixiangfeng Group is a renowned automotive retailer primarily offering auto finance leasing services in China, encompassing auto retail and financing, auto-related businesses, and direct auto retail - The company's main businesses include: (i) auto retail and financing (selling most non-luxury cars through direct finance leases); (ii) auto-related businesses (primarily providing auto operating lease services and other auto-related services); and (iii) direct auto retail (selling cars through one-time sales)[5] Macroeconomic and Industry Analysis In H1 2025, global economic growth slowed, while China's economy maintained stable growth at 5.3% GDP year-on-year under counter-cyclical adjustments, with the automotive market experiencing high growth driven by new energy vehicles and accelerating compliance in the ride-hailing sector, supported by various government policies Macroeconomic Environment Global economic growth continued to slow in the first half of 2025, with the World Bank lowering its global GDP growth forecast to 2.3% - Global economic growth continued to slow in the first half of 2025, with the World Bank lowering its global GDP growth forecast to 2.3%[6] - China's economy operated steadily overall, with GDP reaching RMB 66.05 trillion in H1 2025, a year-on-year increase of 5.3%[6] - The tertiary industry's value added grew by 5.5%, contributing 59.1% to economic growth; industrial value added above designated size increased by 6.4% year-on-year[6] China's Automotive Market China's automotive market saw significant increases in passenger car production, sales, and exports in H1 2025, particularly in new energy vehicles, while the ride-hailing industry accelerated its compliance process 2025 H1 China Passenger Car Production, Sales, and Export Data | Indicator | H1 2025 (ten thousand units) | Year-on-Year Growth | | :--- | :--- | :--- | | Passenger Car Production | 1,352.2 | 13.8% | | Passenger Car Sales | 1,353.1 | 13.0% | | Domestic Passenger Car Sales | 1,095 | 13.6% | | Passenger Car Exports | 258.1 | 10.3% | | New Energy Passenger Car Exports | 101.1 | 71.3% | - The ride-hailing industry's compliance process accelerated, with over 20 provinces intensively introducing new policies to promote its transformation towards standardization and transparency[8] Policy Support The government introduced multiple policies in H1 2025 to support automotive consumption and the financial market, including online export permit applications, "trade-in" subsidies, targeted reserve requirement ratio cuts, and relaxed new energy vehicle loan limits - In January 2025, the Ministry of Commerce launched online application for auto export permits, improving efficiency for enterprises[9] - In January 2025, the National Development and Reform Commission and the Ministry of Finance issued "trade-in" subsidy policies, expanding the scope of scrapped vehicle models and adjusting subsidy standards, effectively stimulating consumer car purchase demand[9] - In May 2025, the People's Bank of China implemented a targeted reserve requirement ratio cut of 5 percentage points, releasing approximately RMB 1.2 trillion in long-term funds and activating the auto finance leasing market[9] - In June 2025, the central bank and six other departments removed the 85% cap on new energy vehicle loans and simultaneously relaxed loan ratios for fuel vehicles, providing more flexible business space for the auto finance industry[10] Business Strategy and Operational Performance In H1 2025, Xixiangfeng Group implemented three core strategies: deepening channel penetration, expanding global markets, and digital transformation, driving a 16.8% year-on-year increase in operating revenue to RMB 769.2 million and a 15.9% increase in profit for the period to RMB 22.6 million Deepening Channel Penetration Strategy and Service Upgrades The group expanded its self-operated sales network and deepened strategic cooperation to enhance service accessibility and quality - The self-operated sales network expanded from 89 branches as of December 31, 2024, to 110 branches as of June 30, 2025, with 19 new self-operated ride-hailing service outlets in East and South China[11] - Strategic cooperation with Tuhu Car Care deepened, with over 7,000 cooperative service outlets providing more convenient and high-quality one-stop car maintenance experiences[11] 2025 H1 Main Business Revenue and Growth | Business Segment | H1 2025 Revenue (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | | Auto Retail and Financing | 606.6 | 7.2% | | Auto-Related Businesses | 103.6 | 16.6% | | Auto Operating Lease (including ride-hailing) | 96.6 | 19.4% | Expanding Global Market Presence The group enhanced its international service capacity and established its first overseas direct operation system, expanding its export business across multiple regions - In May 2025, the wholly-owned subsidiary Horgos subsidiary was upgraded, enhancing service capacity and quality for the Central Asian market[13] - In May 2025, a wholly-owned subsidiary was established in Tashkent, Uzbekistan, successfully executing 48 vehicle purchases and serving over 300 customers, marking the establishment of its first overseas direct operation system[14] - During the reporting period, export revenue reached RMB 38.0 million, with business covering Southeast Asia, the Middle East, Central Asia, Africa, and South America[13] Digital and Intelligent Transformation The group built AI and big data platforms, expanding digital employee deployment and applying AI models to enhance operational efficiency and risk management - Built an Artificial Intelligence (AI) mid-platform and big data platform, expanding the digital employee workforce to 139 individuals, covering 39 key positions[15] - Deepened the application of large AI models in scenarios such as risk control and customer service, achieving an artificial replacement rate of over 60%, enhancing operational efficiency and asset security management levels[15] - Partnered with Baiwang Co., Ltd. to build a smart tax platform, realizing intelligent full-process invoicing and certification, comprehensively upgrading efficiency and risk control[15] Future Outlook Looking ahead to H2 2025, the group will continue to deepen its presence in domestic lower-tier markets, seize opportunities in auto exports for accelerated global expansion, continuously improve business efficiency and customer experience through intelligent algorithms, and actively explore the low-altitude economy sector - For domestic business, the group will further combine market demand, continue to deeply cultivate customer needs in lower-tier markets, and promote sustained and stable growth of domestic business[16] - For overseas business expansion, the group will continue to seize opportunities in auto exports, accelerate the layout and construction of other comprehensive service networks abroad, and accelerate global expansion[16] - In terms of technology empowerment, the group will continue to simplify business processes through intelligent algorithms, expand the deployment of "digital employees," and achieve intelligent upgrades in sales, risk control, and other processes to reduce operating costs[16] - For innovative businesses, the group has established a wholly-owned subsidiary related to the low-altitude economy and obtained the "Civil Unmanned Aircraft Operator Certificate," and will actively explore businesses in the low-altitude economy sector in the future[16] Non-IFRS Measures Non-IFRS Measures The company uses unaudited adjusted net profit (a non-IFRS measure) as an additional financial metric to eliminate the potential impact of items management deems non-indicative of operating performance, such as share option expenses - The company uses unaudited adjusted net profit (a non-IFRS measure) as an additional financial metric to eliminate the potential impact of items management deems non-indicative of operating performance (such as share option expenses)[17] Adjusted Net Profit Reconciliation | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 22,570 | 19,479 | | Add: Share Option Expenses | 1,756 | 4,395 | | Adjusted Net Profit (Non-IFRS Measure) | 24,326 | 23,874 | - During the reporting period, the Group's adjusted net profit was RMB 24.3 million, an increase of 1.9% compared to RMB 23.9 million in the same period last year, primarily due to increased sales revenue[19] Financial Performance Review Revenue Analysis Total revenue for H1 2025 increased by 16.8% year-on-year to RMB 769.2 million, primarily driven by significant growth in direct auto retail business and sales network expansion, with auto retail and financing revenue growing 7.2% and auto-related business revenue growing 16.6%, including a 19.4% increase in auto operating lease revenue Total Revenue Total revenue increased by 16.8% year-on-year to RMB 769.2 million, mainly due to higher growth in direct auto retail business and expansion of the self-operated sales network Revenue Composition and Year-on-Year Change | Revenue Category | Six Months Ended June 30, 2025 (RMB thousands) | Share | Six Months Ended June 30, 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | Auto Retail and Financing | 606,571 | 78.9% | 565,608 | 85.9% | | Auto-Related Businesses | 103,604 | 13.5% | 88,885 | 13.5% | | Direct Auto Retail Business | 58,976 | 7.6% | 4,158 | 0.6% | | Total | 769,151 | 100.0% | 658,651 | 100.0% | - Total revenue increased by 16.8% year-on-year to RMB 769.2 million, primarily due to higher year-on-year growth in direct auto retail business and expansion of the self-operated sales network[20] - As of June 30, 2025, the Group's number of self-operated sales outlets was 110[21] Auto Retail and Financing Business Revenue from auto retail and financing business increased by 7.2% to RMB 606.6 million, driven by higher car sales, while average effective interest rates and return rates on finance lease receivables slightly decreased due to lower financing costs - Revenue from auto retail and financing business increased by 7.2% year-on-year to RMB 606.6 million, primarily due to increased car sales[22] Auto Retail and Financing Business Operational Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Year Ended December 31, 2024 | | :--- | :--- | :--- | :--- | | Average Principal of New Finance Lease Agreements (RMB thousands) | 84.8 | 89.4 | 88.3 | | Average Effective Interest Rate on New Finance Lease Agreements | 17.5% | 18.7% | 17.4% | | Average Return Rate on Finance Lease Receivables | 17.3% | 18.6% | 17.2% | - The average effective interest rate on new finance lease agreements and the average return rate on finance lease receivables slightly decreased, mainly due to lower new financing costs and corresponding product pricing adjustments[24] - Revenue in East China, South China, Northwest China, and Northeast China all slightly increased compared to the same period last year, primarily due to strengthened sales network construction in the respective regions[27] Auto-Related Businesses Revenue from auto-related businesses increased by 16.6% to RMB 103.6 million, mainly driven by higher auto operating lease revenue - Revenue from auto-related businesses increased by 16.6% year-on-year to RMB 103.6 million, primarily due to increased auto operating lease revenue[28] Direct Auto Retail Business Direct auto retail business revenue significantly increased from RMB 4.2 million to RMB 59.0 million, mainly due to the gradual maturity of the business model and increased sales volume - Direct auto retail business revenue significantly increased from RMB 4.2 million to RMB 59.0 million, primarily due to the gradual maturity of the business model and increased sales volume[29] Costs and Gross Profit Cost of sales increased by 19.8% to RMB 538.3 million due to higher sales volume, while gross profit grew 10.3% to RMB 230.9 million, but the overall gross profit margin decreased from 31.8% to 30.0% due to the rapid growth of the lower-margin direct auto retail business Cost of Sales Cost of sales increased by 19.8% to RMB 538.3 million, primarily due to increased sales volume - Cost of sales increased by 19.8% year-on-year to RMB 538.3 million, primarily due to increased sales volume[30] Gross Profit Gross profit increased by 10.3% to RMB 230.9 million, mainly driven by the auto retail and financing segment, but the overall gross profit margin slightly decreased to 30.0% due to the rapid growth of the lower-margin direct auto retail business Gross Profit and Gross Profit Margin by Business Segment | Business Segment | 2025 Gross Profit (RMB thousands) | 2025 Gross Profit Margin | 2024 Gross Profit (RMB thousands) | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Auto Retail and Financing | 208,697 | 34.4% | 193,085 | 34.1% | | Auto-Related Businesses | 20,429 | 19.7% | 16,083 | 18.1% | | Direct Auto Retail Business | 1,748 | 3.0% | 92 | 2.2% | | Total | 230,874 | 30.0% | 209,260 | 31.8% | - Gross profit increased by 10.3% year-on-year to RMB 230.9 million, primarily due to increased gross profit under auto retail and financing[31] - The overall gross profit margin slightly decreased from 31.8% to 30.0%, mainly due to the faster growth in revenue from the direct auto retail business, which has a lower gross profit margin[32] Operating Expenses Selling and marketing expenses increased by 16.0% to RMB 57.9 million due to expanded sales efforts and increased headcount, while administrative expenses rose 8.4% to RMB 60.6 million primarily from higher legal and professional fees, and R&D expenses remained stable Selling and Marketing Expenses Selling and marketing expenses increased by 16.0% to RMB 57.9 million, driven by expanded sales efforts, higher employee benefits due to increased headcount, and increased vehicle expenses from higher sales volume and revenue - Selling and marketing expenses increased by 16.0% year-on-year to RMB 57.9 million, primarily due to expanded sales efforts, increased employee benefits expenses from higher headcount, and increased vehicle expenses from higher sales volume and revenue[33] Administrative Expenses Administrative expenses increased by 8.4% year-on-year to RMB 60.6 million, mainly due to increased legal and professional expenses - Administrative expenses increased by 8.4% year-on-year to RMB 60.6 million, primarily due to increased legal and professional expenses[34] Research and Development Expenses Research and development expenses remained stable at RMB 0.4 million, similar to the RMB 0.5 million in the prior year - Research and development expenses were RMB 0.4 million, largely consistent with RMB 0.5 million in the same period last year[35] Other Income and Losses Net other income/losses increased by 7.9% to RMB 6.4 million, primarily due to higher gains from asset disposals - Net other income/losses increased by 7.9% year-on-year to RMB 6.4 million, primarily due to increased gains from asset disposals[36] Finance Costs Net finance costs increased by 7.7% to RMB 86.8 million, mainly due to the growth in the scale of borrowed financing - Net finance costs increased by 7.7% year-on-year to RMB 86.8 million, primarily due to the growth in the scale of borrowed financing[37] Income Tax Expense Income tax expense decreased to RMB 5.4 million from RMB 7.6 million in the prior year, mainly because the group qualified for national tax preferential policies, applying a lower corporate income tax rate - Income tax expense was RMB 5.4 million, a decrease from RMB 7.6 million in the same period last year, primarily because the Group qualified for relevant national tax preferential policies, applying a lower corporate income tax rate[38] Profit for the Period Profit for the period increased by 15.9% to RMB 22.6 million, mainly driven by increased sales revenue, with profit attributable to owners of the company growing 14.2% to RMB 22.5 million - Profit for the period increased by 15.9% year-on-year to RMB 22.6 million, primarily due to increased sales revenue[39] - Profit for the period attributable to owners of the company increased by 14.2% year-on-year to RMB 22.5 million[40] Balance Sheet Items Analysis Inventory Management As of June 30, 2025, net inventory decreased by RMB 19.0 million to approximately RMB 153.1 million compared to December 31, 2024, mainly due to reduced new car procurement for stock, with the group monitoring inventory through IT systems and regular counts - As of June 30, 2025, the Group's net inventory was approximately RMB 153.1 million, a decrease of RMB 19.0 million from RMB 172.1 million as of December 31, 2024, primarily due to reduced new car procurement for stock[41] - The Group conducts daily checks of actual inventory conditions and monthly counts to ensure accurate inventory records[41] Finance Lease Receivables As of June 30, 2025, net finance lease receivables slightly increased to RMB 1,850.8 million, involving 29,845 contracts, with overdue rates for over three, six, and twelve months all below 1%, indicating good collection management, and the impairment provision ratio remaining stable at 0.9% Overall Receivables Situation Net finance lease receivables slightly increased to RMB 1,850.8 million as of June 30, 2025, involving 29,845 contracts, with the proportion of net finance lease receivables due within one year remaining at 42.1% - As of June 30, 2025, net finance lease receivables were RMB 1,850.8 million, a slight increase compared to December 31, 2024[43] - Involving 29,845 contracts, the proportion of net finance lease receivables due within one year remained at 42.1%[43] Net Finance Lease Receivables Term Distribution | Term | Net Amount as of June 30, 2025 (RMB thousands) | Share | Net Amount as of December 31, 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 778,589 | 42.1% | 767,998 | 42.1% | | 1 to 2 years | 541,425 | 29.3% | 527,552 | 28.9% | | 2 to 5 years | 530,784 | 28.6% | 527,671 | 29.0% | | Total | 1,850,798 | 100.0% | 1,823,221 | 100.0% | Geographical Segmentation The geographical distribution of net finance lease receivables shows East China as the largest region, with other regions also contributing significantly Net Finance Lease Receivables Geographical Distribution | Customer Location | Net Amount as of June 30, 2025 (RMB thousands) | Share | Net Amount as of December 31, 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | East China | 842,738 | 45.5% | 778,979 | 42.7% | | South China | 247,182 | 13.4% | 258,715 | 14.2% | | Southwest China | 184,857 | 10.0% | 194,104 | 10.6% | | Central China | 149,158 | 8.1% | 165,717 | 9.1% | | North China | 183,194 | 9.9% | 187,645 | 10.3% | | Northwest China | 167,900 | 9.1% | 164,885 | 9.0% | | Northeast China | 75,769 | 4.0% | 73,176 | 4.1% | | Total | 1,850,798 | 100.0% | 1,823,221 | 100.0% | Overdue Status and Impairment Provisions Overdue rates for finance lease receivables exceeding three, six, and twelve months remained below 1%, while overdue coverage ratios for over three, six, and twelve months slightly decreased due to active monitoring and improved loss recovery measures Finance Lease Receivables Overdue and Impairment Status | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Finance Lease Receivables | 1,850,798 | 1,823,221 | | Impairment Provision for Finance Lease Receivables | 17,183 | 16,625 | | Net Finance Lease Receivables Provision Ratio | 0.9% | 0.9% | | Net Overdue Finance Lease Receivables | | | | Over 1 month | 33,956 | 34,425 | | Over 3 months | 14,715 | 13,451 | | Over 6 months | 6,308 | 5,873 | | Over 1 year | 2,719 | 2,563 | | Overdue Ratio | | | | Over 1 month | 1.8% | 1.9% | | Over 3 months | 0.8% | 0.7% | | Over 6 months | 0.3% | 0.3% | | Over 1 year | 0.1% | 0.1% | | Overdue Coverage Ratio | | | | Over 1 month | 50.6% | 48.3% | | Over 3 months | 116.8% | 123.6% | | Over 6 months | 272.4% | 283.1% | | Over 1 year | 632.0% | 648.7% | - As of June 30, 2025, the overdue ratio for over three months, over six months, and over one year were all below 1%[46] - Overdue coverage ratios for over three months slightly decreased, and for over six months and over one year decreased, mainly due to active monitoring and continuous improvement of loss recovery measures[46] Current Assets and Liabilities As of June 30, 2025, net current assets increased from RMB 323.2 million to RMB 398.6 million, primarily due to increases in current assets such as finance lease receivables, prepayments, deposits, and other receivables, as well as a decrease in current liabilities like trade payables Current Assets and Current Liabilities Status | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Current Assets | 1,690,783 | 1,664,937 | | Total Current Liabilities | 1,292,190 | 1,341,772 | | Net Current Assets | 398,593 | 323,165 | - The increase in net current assets was primarily due to increases in current assets such as finance lease receivables, prepayments, deposits, and other receivables, and a decrease in current liabilities such as trade payables[56] Capital Expenditures Capital expenditures increased by 12.1% year-on-year to RMB 195.2 million, primarily for the purchase of property and equipment and additions to intangible assets - Capital expenditures increased by 12.1% year-on-year to RMB 195.2 million, primarily due to increased expenditures for the purchase of property and equipment and additions to intangible assets[58] Asset Pledges As of June 30, 2025, the total pledged assets for borrowings increased to RMB 2,350.6 million, with increases in pledged property and equipment and finance lease receivables, and decreases in pledged loan deposits and inventory - As of June 30, 2025, the Group's pledged assets for borrowings increased from RMB 2,249.2 million as of December 31, 2024, to RMB 2,350.6 million[59] Composition of Pledged Assets | Pledged Asset Category | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property and Equipment | 467,005 | 376,789 | | Loan Deposits | 51,514 | 57,489 | | Inventory | 79,591 | 103,020 | | Finance Lease Receivables | 1,752,513 | 1,711,893 | Risk Management and Internal Control Internal Control System The group has established a risk management and internal control system to effectively manage risks, with specific risk management policies tailored to the characteristics of the auto finance leasing business - The Group has established a risk management and internal control system to manage the risks it is exposed to, and has formulated corresponding risk management policies in accordance with the management characteristics of the auto finance leasing business[47] Credit Risk Management Policy The group's credit risk management system is divided into pre-lease assessment and post-lease management, involving strict approval based on qualitative and quantitative factors and database checks, followed by regular monitoring of customer payments and vehicle activities using GPS tracking to maintain low overdue rates Pre-Lease Credit Assessment and Approval Process The credit assessment and approval process considers both qualitative and quantitative factors, including age, location, driving penalty records, credit history, litigation records, proposed principal, personal asset value, and income level - The credit assessment and approval process considers both qualitative factors (such as age, location, driving penalty records, credit history, and litigation records) and quantitative factors (such as proposed principal, personal asset value, and personal income level)[49] - Potential customers must meet initial requirements (such as valid Chinese ID card, driving license, age restrictions) and undergo credit assessment through self-built and third-party databases[50] - Before signing the agreement, an interview is conducted with the customer to verify identity and ensure understanding of the terms and conditions, after which the customer is required to make an initial payment[50] Post-Lease Credit Risk Management After vehicle handover, the group regularly monitors customer payments and vehicle activities, utilizing pre-installed GPS tracking devices and a vehicle monitoring platform to manage credit risk and maintain low overdue rates - After vehicle handover, the Group regularly monitors customer payments and vehicle activities, and monitors the status of leased vehicles through pre-installed GPS tracking devices and a vehicle monitoring platform[52] - The customer service department typically sends SMS reminders to customers three to five days before payment due dates[52] - If any amount is overdue for more than 35 days or abnormal activity is detected, the Group may exercise its right to directly repossess the vehicle and implement other necessary legal measures[53] Capital Management Capital Management The group regularly reviews and manages its capital structure to balance debt and equity financing, adjusting it in response to changes in economic conditions, with the gearing ratio increasing to 71.3% due to higher net debt - The Group regularly reviews and manages its capital structure to achieve a balance between debt and equity financing, and adjusts its capital structure in response to changes in economic conditions[54] Capital Structure and Gearing Ratio | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Borrowings | 2,441,445 | 2,281,558 | | Lease Liabilities | 14,137 | 11,195 | | Less: Cash and Cash Equivalents | (333,771) | (340,598) | | Net Debt | 2,121,811 | 1,952,155 | | Total Equity | 852,272 | 827,846 | | Total Capital | 2,974,083 | 2,780,001 | | Gearing Ratio | 71.3% | 70.2% | - As of June 30, 2025, the gearing ratio increased from 70.2% as of December 31, 2024, to 71.3%, primarily due to an increase in net debt[55] Other Corporate Information Foreign Exchange Risk The group's subsidiaries primarily operate in China, with most revenues and expenses denominated in RMB, and did not encounter significant foreign exchange risk or require hedging during the reporting period - The Group's subsidiaries primarily operate in China, with most revenues and expenses denominated in RMB, and did not encounter significant foreign exchange risk or require hedging for any foreign exchange fluctuations during the reporting period[57] Employees and Remuneration Policy As of June 30, 2025, the group employed 1,270 full-time employees, with employee benefits expenses increasing to RMB 76.5 million, offering salaries, year-end bonuses, performance bonuses, and share awards, supported by a structured training system - As of June 30, 2025, the Group employed 1,270 full-time employees, with 1,267 in mainland China and 3 in Hong Kong, China[64] - For the six months ended June 30, 2025, the Group's employee benefits expenses (including directors' emoluments) were