ZHONGSHENG HLDG(00881) 智通财经·2024-03-27 04:25Core Viewpoint - Zhongsheng Holdings (00881) reported a slight decline in revenue and a significant drop in net profit for the fiscal year ending December 31, 2023, indicating challenges in the new car sales market while showing growth in the used car and after-sales service segments [1] Group 1: Financial Performance - The company achieved revenue of 179.29 billion RMB, a year-on-year decrease of 0.32% [1] - Shareholders' profit attributable to the company was 5.018 billion RMB, down 24.97% year-on-year [1] - Basic earnings per share were 2.09 RMB, with a proposed final dividend of 0.797 HKD per share [1] Group 2: Revenue Breakdown - Revenue from new car sales was 140.215 billion RMB, a decline of 3.6% compared to 2022, primarily due to a decrease in new car sales volume [1] - Revenue from boutique and after-sales services was 25.09 billion RMB, an increase of 2.0% year-on-year, with after-sales service revenue growing by 15.5% to 20.076 billion RMB [1] - Used car sales revenue reached 13.985 billion RMB, up 42.3% year-on-year, driven by increased sales volume [1] Group 3: Business Segment Contribution - New car sales accounted for 78.2% of total revenue, down from 80.9% in 2022 [1] - Boutique and after-sales services contributed 14.0% to total revenue, up from 13.7% in 2022 [1] - Used car sales represented 7.8% of total revenue, increasing from 5.4% in 2022 [1] Group 4: Used Car Business Growth - The used car business saw significant growth in both transaction volume and overall profit, with monthly transaction volume increasing from 7,000 units in January to 20,000 units in December [1] - Total used car transactions grew by 17% year-on-year to over 164,000 units, with corresponding profit increasing by 55% to over 1.2 billion RMB, accounting for 6.9% of the total annual profit [1] Group 5: Service Center Expansion - As of March 2024, the company operates 20 Zhongsheng brand service centers in 15 cities, with 14 more under construction and an additional 12 planned [2] - Once completed, these 46 service centers will cover 29 cities, approximately 65% of stores, and nearly 70% of active retained customers [2] - The company aims to deepen engagement with insurance companies and customers to enhance network effects in the local repair service market [2]