Core Viewpoint - The partnership between 喜相逢集团 (Xiangxiang Group) and 哈啰租车 (Hello Car Rental) aims to enhance the car rental business through a co-branded store model in designated cities in China, leveraging both companies' strengths to improve user experience and operational efficiency [1][2]. Group 1: Partnership Details - 喜相逢集团's indirect wholly-owned subsidiary, 喜相逢融资租赁集团有限公司, signed a business cooperation agreement with 哈啰租车 on December 5, 2025 [1]. - The collaboration will initially launch in ten cities, including Hangzhou, Hefei, Wuhan, Guiyang, Xi'an, Nanjing, Nanning, Nanchang, Changsha, and Zhengzhou [1]. - The co-branded stores will integrate both "哈啰租车" and "喜相逢" brand images, combining online and offline resources [1]. Group 2: Strategic Implications - The board believes that the partnership will combine the operational experience and offline vehicle resources of 喜相逢集团 with the online platform traffic advantages of 哈啰租车 [2]. - This collaboration aligns with 喜相逢集团's strategic plan to continuously develop automotive-related services [2]. - The partnership is expected to positively impact the future business development and financial status of 喜相逢集团 [2].

Core Insights - 喜相逢集团 has signed a business cooperation agreement with 哈罗租车 to launch a joint car rental business in designated cities in China [1] - The initial plan includes opening joint stores in ten cities, enhancing user experience and operational efficiency through resource integration [1] - The collaboration aims to leverage 喜相逢集团's operational experience and 哈罗租车's online platform advantages, which is expected to positively impact the company's future business development and financial status [1] Company Overview - 喜相逢集团's indirect wholly-owned subsidiary, 喜相逢融资租赁集团有限公司, is involved in the agreement with 哈罗租车 [1] - 哈罗租车 is a leading car rental service platform under the mobile travel platform 哈罗出行, providing standardized online car rental services [1] Strategic Implications - The partnership aligns with 喜相逢集团's strategic planning for the continuous development of automotive-related services [1] - The collaboration is anticipated to enhance asset operational efficiency and user coverage scale for 喜相逢集团 [1] Financial Details - 喜相逢集团 has entered into a 48-month sale and leaseback contract with a total rental fee of 6.442 million yuan [2]

Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company is experiencing a decline in revenue and profit margins, with a focus on optimizing organizational management and accelerating resource integration to enhance operational efficiency [1][3] - The company plans to distribute a cash dividend of 5.00 yuan per 10 shares, totaling 2.7 billion yuan, which represents 89% of the net profit attributable to shareholders for 2024 [1] - The company is adjusting its profit forecasts for 2025-2026 due to weak retail performance and the integration of online and offline channels, with expected net profits of 330 million yuan and 350 million yuan for 2025 and 2026, respectively [4] Financial Performance Summary - For Q1 2025, the company reported revenue of 480 million yuan, a year-on-year decrease of 11%, and a net profit attributable to shareholders of 80 million yuan, down 25% year-on-year [1] - For Q4 2024, the company reported revenue of 610 million yuan, a year-on-year decrease of 25%, and a net profit attributable to shareholders of 20 million yuan, down 69% year-on-year [1] - For the full year 2024, the company reported revenue of 2.2 billion yuan, a year-on-year decrease of 16%, and a net profit attributable to shareholders of 300 million yuan, down 39% year-on-year [1] Brand Performance Summary - In Q1 2025, the DA brand generated revenue of 240 million yuan, down 9% year-on-year, with a gross margin of 77% [2] - The DM brand reported revenue of 30 million yuan, down 29% year-on-year, with a gross margin of 82% [2] - The DZ brand generated revenue of 200 million yuan, down 10% year-on-year, with a gross margin of 74% [2] Strategic Initiatives - The company plans to establish a marketing center to integrate its marketing team and adopt a flat, modular management model to enhance business collaboration [3] - The e-commerce module will be optimized by adjusting the talent structure based on brand dimensions and focusing on platform characteristics to improve team capabilities [3]