China ZhengTong Auto revenue falls on lower new vehicle sales

China Zhengtong Auto Services Holdings

28/08/2026 15:35

Overview
China auto dealership's H1 revenue fell 23% yr/yr on lower new vehicle sales
Company posted a wider net loss for the period compared to last year
Gross profit margin declined to 2.1% from 4.1% as gross profit dropped 60%

Outlook
Company did not provide specific financial guidance for future quarters or the full year in the press release

Result Drivers
LOWER VEHICLE SALES - Co said revenue decline was mainly due to a drop in new vehicle sales volume and reduced income from mortgage facilitation services
GROSS PROFIT DROP - Co attributed 60% fall in gross profit to lower after-sales services income and reduced mortgage commission rebate rates

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 9.62 bln
 
H1 Net Loss Attributable
 
RMB 1.17 bln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

Reuters Recommended Reads
Aug 26 - Chinese car dealership MeiDong Auto's H1 revenue falls 27% yr/yr amid weak demand
Aug 28 - China's BAIC Motor H1 revenue falls, posts net loss; hurt by price competition and lower sales
Aug 26 - China's Li Auto Q2 revenue falls 15% on lower deliveries

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)