BYD(SZ:002594) Zhong Guo Qi Che Bao Wang·2025-09-08 02:44Core Insights - The Chinese automotive industry is accelerating its overseas expansion, with companies like BYD and Harmony Auto leading the charge in establishing international dealership networks [2][3] - Harmony Auto has recently sold 45% of its overseas electric vehicle business, iCar Group, to reduce financial risks while maintaining control over the business [6][7][8] - Despite a decline in overall revenue, Harmony Auto's overseas sales have surged, indicating a strong growth potential in international markets [5][8] Group 1: Overseas Expansion - In the first half of 2023, Chinese automotive brands have significantly increased their overseas presence, with Harmony Auto opening 100 BYD stores globally [2] - Harmony Auto has established a sales network across multiple countries in the Asia-Pacific region and Europe, with 83 operational stores in 18 countries [3] - The company has achieved notable sales figures, with 6,274 vehicles sold in 2024 from overseas markets, representing 18.9% of its total sales, a staggering increase of 146 times compared to 2023 [3] Group 2: Financial Performance - In 2024, Harmony Auto reported a total revenue decline of 5.8%, the smallest drop among eight Hong Kong automotive dealer groups [5] - The company's gross profit was 700 million yuan, with a gross margin of 4.5%, while net profit fell to a loss of 285 million yuan, a 20.8% decrease year-on-year [5] - The overseas business, while growing, has not yet generated significant profits, contributing to substantial losses for the iCar Group [8] Group 3: Strategic Asset Management - The sale of 45% of iCar Group's equity is seen as a strategic move to alleviate financial pressure and optimize the asset-liability structure of Harmony Auto [6][9] - The transaction allows Harmony Auto to maintain control over its overseas operations while reducing the burden of capital investment [8][9] - Analysts suggest that the rapid expansion of Harmony Auto's overseas network has led to increased operational costs, necessitating this asset sale to ensure sustainability [9][10]