Core Viewpoint - The company is facing pressure on performance due to declining new car gross margins, leading to a downward revision of profit forecasts for 2025-2027, despite maintaining a "buy" rating based on its resilience as a leading dealership group in the industry transformation [1][2] Group 1: Financial Performance - In H1 2025, the company achieved operating revenue of 77.3 billion yuan, a year-on-year decrease of 6.2% [1] - The comprehensive income for H1 2025 was 6.054 billion yuan, down 11.8% year-on-year [1] - The net profit attributable to shareholders was 1.011 billion yuan, reflecting a significant year-on-year decline of 36.0% [1] Group 2: New Car Sales - The company sold 228,600 new cars in H1 2025, a slight decrease of 1.7% year-on-year [1] - The new car sales gross margin was negative 2.388 billion yuan, with a gross margin rate of negative 4.1%, resulting in an average loss of approximately 10,443 yuan per vehicle [1] - The AITO brand sold 11,000 new cars in H1 2025, contributing to a 0.6 percentage point increase in the group's new car gross margin rate [1] Group 3: After-Sales Service - The company generated after-sales service revenue of 11.45 billion yuan in H1 2025, representing a year-on-year increase of 4.4% [2] - The gross profit from after-sales services was 5.44 billion yuan, up 8.1% year-on-year [2] - The number of after-sales service visits increased by 1.7% year-on-year, although growth was slightly lower due to the closure of some high-performing mid-to-high-end brand dealerships [2]

Group 1 - Zhongsheng Holdings (00881) shares rose over 5%, currently up 4.57% at HKD 16.7, with a trading volume of HKD 314.83 million [1] - For the six months ending June 30, 2025, Zhongsheng Holdings reported total revenue of RMB 77.322 billion, a year-on-year decrease of 6.2% [1] - The net profit attributable to shareholders was RMB 1.011 billion, down 36% year-on-year, with basic earnings per share of RMB 0.427 [1] Group 2 - In the first half of 2025, the company sold 228,600 new vehicles, a year-on-year decrease of 1.7%, impacted by intensified competition in the new car market [2] - The gross profit from new car sales was negative RMB 2.388 billion, with a gross margin of -4.1%, resulting in an average loss of approximately RMB 10,443 per vehicle [2] - AITO brand's new car sales reached 11,000 units in the first half of 2025, contributing to a 0.6 percentage point increase in the group's new car gross margin [2]