Core Insights - The overall satisfaction score of automotive dealers in China dropped significantly to 64.7 points in the first half of 2025, primarily due to multiple operational pressures [2] - Only 30% of dealers met their sales targets in the first half of the year, indicating increased survival pressure for dealers [2] - The profitability of dealers is under severe strain, with 52.6% reporting losses, while only 29.9% reported profits [2] Group 1: Dealer Performance - The proportion of dealers completing sales targets is low, with 29% of dealers achieving less than 70% of their targets [2] - Among new energy independent brand dealers, 42.9% reported profits, compared to only 25.6% of traditional fuel vehicle brand dealers [2] - The overall performance of dealers is further complicated by a significant increase in the number of dealers reporting losses [2][3] Group 2: Profitability and Revenue Sources - The gross profit contributions from new cars, after-sales, and financial insurance are -22.3%, 63.8%, and 36.2% respectively, indicating a negative contribution from new car sales [3] - New energy brand dealers show relatively better profitability in new car sales compared to traditional fuel vehicle brand dealers [3] Group 3: Pricing and Financial Pressures - 74.4% of dealers experienced price inversion, with 43.6% facing price inversions exceeding 15% [4] - The severe price inversion is consuming dealers' liquidity, particularly affecting traditional fuel brand dealers [4] - The automotive industry is facing challenges with the complexity of rebate policies from manufacturers, which need to be simplified to alleviate financial pressures on dealers [4][5]

Automotive Dealer Strategy - SKU Streamlining: The number of configurations for single models has been reduced from 4-5 to 2-3 (e.g., Qin Lev/Seagull 06EV has only 3 versions) to optimize the supply chain, reduce inventory complexity, and enhance product competitiveness [4] - Inventory Break Mechanism: Immediate cessation of shipments when inventory exceeds warning levels to alleviate financial pressure on dealers and enhance operational flexibility [4] - Accelerated Rebate Payments: Shortening the rebate cycle and expediting fund allocation (personally supervised by Wang Chuanfu) to stabilize the pricing system and ensure dealer profitability [4] - Terminal Price Control: Managing discount levels and optimizing promotional policies to prevent vicious competition and ensure sustainable profits [4] International Market Dynamics - Indonesia Market: The first dealer conference was held, signing long-term service commitments, and traditional dance performances were used to strengthen brand cohesion [4] - Americas Market: 170 dealers experienced the Tengshi Z9GT/Yangwang U8, with a focus on expanding into European, North American, and South American markets, alongside tea ceremony activities to promote Chinese culture [4] Other Business Lines - Forklift Business: Targeting an annual sales revenue of 5 billion yuan, with strategies focused on electric forklift technology upgrades and intelligent logistics solutions, aiming to expand into high-end markets in Europe, the United States, and Japan [4]