China Yongda Automobiles Services Holdings (3669) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB63,420 million, down 14.6% year-over-year, with gross profit at RMB5,273 million, a 21.2% decrease compared to 2023. Net profit attributable to owners was RMB201 million, down 64.9% year-over-year, impacted by lower gross profit from new vehicle sales and a RMB40.45 million goodwill impairment.

• New vehicle sales volume fell 11.7% to 171,236 units, while pre-owned vehicle transactions dropped 19.4% to 74,969 units. After-sales service revenue remained stable at RMB9,748 million, with a gross margin of 42.16%.

• The company maintained a healthy cash flow, with net cash from operating activities at RMB1,518 million and a net gearing ratio of 10.2%.

Financial highlights

• Revenue: RMB63,420 million (down 14.6% year-over-year).

• Gross profit: RMB5,273 million (down 21.2% year-over-year); gross margin: 8.32% (down 0.69 percentage points).

• Net profit attributable to owners: RMB201 million (down 64.9% year-over-year).

• Adjusted net profit (excluding goodwill impairment): RMB241 million.

• EPS: RMB0.11 (down from RMB0.29 in 2023).

• Final dividend proposed: RMB0.069 per share.

Outlook and guidance

• The company will focus on a dual-track strategy of “New Energy + Luxury Vehicles,” aiming for new energy vehicles to account for 50% and luxury vehicles 40% of new vehicle sales by 2026.

• Plans include expanding battery recycling and intelligent robot businesses, accelerating digital transformation, and maintaining strict cost control to ensure stable cash flow.

• Dividend distribution and share repurchase policies will be maintained to enhance shareholder returns.