Embrace Changes for Growth Unite Strength for the Future Annual Results 2025 Table of Contents 01 Results Overview 02 Financial Review 03 Business Review 04 Outlook 05 Appendix Results Overview 01 Results Overview | (RMB mn) | 2024 | 2025 | Change | | --- | --- | --- | --- | | New car sales volume (units) | 485,307 | 497,316 | 2.5% | | Pre-owned car sales volume (units) | 226,231 | 221,213 | (2.2)% | | After-sales services visits ('000 units) | 8,048 | 8,067 | 0.2% | | Number of dealership stores | 423 | 45 ...

Key Points - The article discusses the implementation of a water resource tax in Shanxi Province, detailing the applicable tax rates for different types of water usage [3][4]. - The tax rates vary based on the type of water used, with specific rates for agricultural production, public water supply, and special water usage [3]. - There are penalties for unauthorized water extraction, with increased tax rates applied based on the extent of the over-extraction [4]. - The new tax regulations will take effect on December 1, 2024 [4]. Tax Rates Summary - Surface water for agricultural production is taxed at 0.05 yuan per cubic meter, while for special water usage, the rate is 5 yuan per cubic meter [3]. - Groundwater for agricultural production is taxed at 0.2 yuan per cubic meter, with special usage at 20 yuan per cubic meter [3]. - Other water usage types, such as geothermal water, have varying rates, with some at 1.4 yuan per cubic meter [3]. Penalty Structure - Unauthorized water extraction exceeding the planned amount by 20% incurs a penalty of double the applicable tax rate [4]. - If the over-extraction is between 20% and 40%, the penalty increases to 2.5 times the applicable tax rate [4]. - For over-extraction exceeding 40%, the penalty is three times the applicable tax rate [4]. Implementation Date - The new water resource tax regulations will be implemented starting December 1, 2024 [4].

Group 1 - The article provides a step-by-step guide on how to log into the individual electronic tax bureau and submit tax declarations for individual business operators [1][2]. - It details the process of correcting previously submitted tax declarations, including selecting the tax period and modifying the profit information [4][6]. - The article emphasizes the importance of ensuring that any corrections made to past declarations are followed by the necessary adjustments to subsequent tax filings for the same year [6][8]. Group 2 - It explains the different VAT rates applicable to landscaping services, specifically that services related to planting should be taxed at 9%, while maintenance services should be taxed at 6% [14][15]. - The article clarifies that if a contract includes both types of services, the amounts must be separately stated to apply the correct tax rates; otherwise, the higher rate of 9% will apply [15]. - It discusses the VAT tax incentives for second-hand car dealers, stating that they can benefit from a reduced VAT rate of 0.5% under certain conditions [17][18].

Core Viewpoint - Carvana Co. is facing significant challenges due to its controversial financial history, governance issues, and increasing regulatory scrutiny, which could lead to substantial downside risks for investors [2][4]. Financial Performance - As of October 9th, Carvana's share price was $360.03, with trailing and forward P/E ratios of 98.19 and 60.61 respectively [1]. - The company has over $4.5 billion in debt maturing over the next decade, indicating potential financial strain [3]. Governance and Management - The Garcia family's history of financial misconduct raises concerns about the governance of Carvana, particularly with the audit committee chairman having longstanding ties to the Garcias [3][4]. - The aggressive financial strategies employed by the company, including subprime auto lending and complex related-party transactions, have been criticized for inflating reported sales and earnings [2][3]. Regulatory Environment - Carvana is under increasing regulatory scrutiny, with the SEC issuing a subpoena and investors pursuing lawsuits related to alleged pump-and-dump schemes [4]. - The combination of aggressive financial engineering and governance risks suggests that Carvana is vulnerable to market and regulatory pressures [4]. Market Position and Strategy - Despite the challenges, Carvana's vertically integrated e-commerce platform and operational efficiencies have been highlighted as strengths, contributing to a 12.4% appreciation in stock price since previous bullish coverage [5]. - The company's reliance on the volatile subprime lending market continues to underpin its profitability, but this also exposes it to significant risks [4].

Strategic Vision & Customer Base - Zhongsheng aims to be the most trusted auto services brand for premium consumers in China[4] - The company has 4.54 million active customers[4] - Zhongsheng has 3.80 million Zhongsheng GO subscribers[4] - The average number of active customers per store is 137,000[4] Market Dynamics & Positioning - Repeat buyers account for approximately 80% of the Chinese auto market in 2024[8] - Zhongsheng's customer service covers 14.6% of the luxury brands in 32 core cities[10] - Zhongsheng operates 439 stores in total[19] - Zhongsheng operates 46 collision centers[19] Financial Performance (1H2025) - After-sales services revenue grew by 4.4% to RMB 5.441 billion[50] - Active customers serviced increased by 1.7% to 4.003 million[50] - Serviced units increased by 9.9% to 4.542 million[50] - Insurance policies brokered increased by 8.1% to 1.204 million[50] - Total revenue decreased by 6.2% to RMB 77.3 billion[88] - New car revenue decreased by 4.7% to RMB 57.9 billion[92] - Used car revenue decreased by 27.0% to RMB 6.0 billion[94] - Accessories, packages and after-sales services revenue increased by 0.1% to RMB 13.4 billion[90] - New car sales volume decreased by 1.7% to 228,649 units[98] - Used car sales volume increased by 9.6% to 111,244 units[98] - Net profit attributable to owners of the parent was RMB 1.011 billion[114]

Group 1 - The company reported a revenue of 20.747 billion RMB for the year ending December 31, 2024, representing a year-on-year decrease of 14.03% [1] - The net loss attributable to ordinary shareholders was 1.709 billion RMB, an increase of 91.75% compared to the previous year, with a basic loss per share of 0.56 RMB [1] - The total new car sales for the year reached 55,054 units, with mid-to-high-end brand sales accounting for 46,756 units [1] - Sales of new energy vehicles amounted to approximately 5,759 units, making up 10.5% of total sales, showing an increase in both volume and percentage compared to the previous year [1] - The company achieved 1.1021 million after-sales service instances, generating approximately 3.195 billion RMB in after-sales service revenue [1] - The total sales of used cars reached 14,000 units, reflecting a year-on-year growth of about 24%, with retail sales of 1,817 units, up approximately 36% [1] - The fourth quarter of 2024 saw particularly strong performance, with retail volume increasing by over 120% year-on-year [1] - The company has strategically phased out weaker brands in response to industry transformation trends [1] - As of December 31, 2024, the company operated 93 outlets across 36 cities in 15 provinces and municipalities, with additional authorized and planned dealerships [1] Group 2 - The company ranked 18th in the "2024 China Automotive Dealer Group Top 100" list, improving by 4 positions from 2023 [2] - The company was included in the "2024 China Automotive Top 100 Dealer Group - New Energy Sub-list" and ranked 12th in the "2024 China Automotive Circulation Industry Social Responsibility Top 100" [2] - The company's stores have collectively received 319 awards from manufacturers, local governments, industry media, and associations, including 293 manufacturer awards and 26 from government, media, and industry associations [2]