Core Viewpoint - The Chinese automotive service industry, driven by over 359 million vehicles, is undergoing a significant transformation, with the market expected to reach 1.9 trillion yuan by 2025 and 2.2 trillion yuan by 2030 [1][3]. Industry Overview - The automotive service sector in China is characterized by a fragmented competitive landscape, comprising 4S dealerships, large chain platforms, regional chains, and numerous independent repair shops [1]. - The industry is currently in a deep adjustment phase, with a reported 5% decline in market value and a 4% decrease in service visits in the first half of 2025 [3]. Company Performance - Tuhu Car Maintenance, a leading player in the automotive service industry, reported a revenue of 7.88 billion yuan in the first half of 2025, marking a 10.5% year-on-year increase, and an adjusted net profit of 410 million yuan, up 14.6% [4][5]. - The company's stock price surged by 11.44% following the release of its strong financial results [5]. Operational Expansion - Tuhu Car Maintenance has established the largest offline automotive service network in China, with 7,205 service locations as of June 30, 2025, a 14.2% increase from the previous year [6]. - The company has focused on expanding into lower-tier cities, with over 60% of new stores opened in second-tier and below cities, significantly boosting its market presence [6]. Product and Service Strategy - Tuhu employs a dual-track strategy, collaborating with both international brands and domestic manufacturers to cater to various consumer needs [7]. - The company has seen a 60% year-on-year increase in revenue from its quick repair services, driven by the rising average age of passenger vehicles [8]. Technological Advancements - Tuhu has integrated AI technology into its operations, enhancing service quality and operational efficiency across its network of over 7,200 service locations [11]. - The company has developed a comprehensive automotive parts database with 9.5 million SKUs, achieving a matching accuracy of 99.99% [12]. Customer Engagement and Satisfaction - Tuhu Car Maintenance boasts a user base of 150 million registered users, with a customer satisfaction rate exceeding 95% and a repurchase rate of 64% [14]. - The company emphasizes long-term strategies and technological investments to maintain its leading position in the automotive service industry [14].