Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Insights - The company achieved a revenue of 7.877 billion yuan in H1 2025, representing a year-on-year increase of 10.54%, and an adjusted net profit of 410 million yuan, up 14.6% year-on-year [1]. - The company is expanding its presence in lower-tier cities, with a coverage rate of 70% in counties with over 20,000 passenger vehicles, and a total of 7,205 stores, of which 90% of existing stores are profitable [2]. - The company’s supply chain and logistics efficiency have improved, with a reduction in fulfillment costs and enhanced warehouse efficiency [4]. - The new energy business is emerging as a second growth curve, with a significant increase in transaction users and penetration rates [5]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 7.877 billion yuan, a 10.54% increase year-on-year, and an adjusted net profit of 410 million yuan, reflecting a 14.6% growth [1]. - The gross profit was 1.982 billion yuan, with a gross margin of 25.2%, slightly down by 0.7 percentage points year-on-year [1]. Market Expansion - The company has successfully penetrated lower-tier cities, achieving a 70% coverage rate in counties with over 20,000 passenger vehicles, and has opened 331 new stores, with over 60% located in these cities [2]. - The registered user base reached 150 million, an 18.8% increase year-on-year, with active monthly users at 13.5 million, up 17.5% [2]. Business Segments - The tire and chassis parts segment generated 3.285 billion yuan in revenue, a 10.5% increase year-on-year, while the automotive maintenance segment saw revenue of 2.907 billion yuan, up 11.1% [3]. - The new energy segment reported a transaction user count of 3.4 million, an 83.5% increase year-on-year, indicating strong growth potential [5]. Operational Efficiency - The company has optimized its supply chain with 258 self-operated delivery routes connecting 32 regional warehouses, resulting in a year-on-year decrease in fulfillment costs [4]. - A new automated warehouse in Guangzhou has improved operational efficiency by 2.5 times while reducing labor costs by 60% [4].

Core Viewpoint - In the first half of 2025, the company achieved revenue of 7.877 billion RMB, a year-on-year increase of 10.54%, and a Non-IFRS net profit of 410 million RMB, a year-on-year increase of 14.60%, with a profit margin of 5.21%, compared to 5.03% in the same period last year, with revenue slightly below Bloomberg consensus expectations and profit exceeding expectations [1] Revenue and Profit Analysis - The company reported revenue of 7.877 billion RMB in the first half of 2025, with automotive products and services revenue at 7.362 billion RMB, a year-on-year increase of 10.82% [1] - Revenue from tires, chassis components, automotive maintenance, and auto parts reached 3.285 billion, 2.907 billion, and 730 million RMB respectively, with year-on-year growth of 11%, 11%, and 8% [1] - Advertising, franchise, and other service revenue was 515 million RMB, a year-on-year increase of 6.56%, with franchise service revenue at 424 million RMB, a year-on-year increase of 12% [1] User Growth and Market Expansion - As of June 30, 2025, the company had a total of 7,205 service stations, an increase of 331 from the end of 2024, indicating steady expansion in the market [1] - The cumulative registered user count reached 150 million, a year-on-year increase of 19%, with monthly active users at 13.5 million, a year-on-year increase of 17.5%, and transaction users (TTM) at 26.5 million, a year-on-year increase of 24% [1] New Energy Sector Performance - The total number of new energy payment users (TTM) reached 3.4 million by the end of June, a year-on-year increase of 83.5%, with a new energy user penetration rate exceeding 12%, positioning the company as an industry leader [2] AI and Supply Chain Efficiency - The company has implemented AI models that significantly improved sales conversion rates and customer satisfaction, with customer service labor costs decreasing by 18% year-on-year [2] - The automated benchmark warehouse in Guangzhou has been operational, reducing labor costs by 60% and increasing efficiency by 2.5 times, while pilot projects for unmanned vehicle delivery have been launched in cities like Nanjing and Chengdu [2] Future Revenue and Profit Forecast - The company forecasts revenues of 16.703 billion RMB and 19.127 billion RMB for 2025 and 2026, representing year-on-year growth of 13.18% and 14.51% respectively, with adjusted net profits of 752 million RMB and 909 million RMB, reflecting year-on-year growth of 20% and 21% [2]