Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — FY2024 Earnings Presentation
18 slides from Zhongsheng's earnings presentation, 2025
Slide 1: 2024 Annual Results
2024 Annual Results
Slide 2: Zhongsheng Strategic Vision: Most Trusted Auto Services Brand for Premium Consumers
Zhongsheng Strategic Vision: To Become the Most Trusted Auto Services Brand for Premium Consumers in China New Car Sales Volume Market Share of Luxury Brands1 Premium Positioning 485k units 14.1% Active Customers2 Zhongsheng GO Subscribers Brand Reputation 4.19mn 3.50mn Used Car Sales Volume # of Af
Slide 3: Context of Zhongsheng Branded Auto Services Strategy
Context of Zhongsheng Branded Auto Services Strategy Huge Luxury Brand Car Parc Market More Sophisticated Customers Market Consolidation Expedited Potential auto buyers by age2 9.5% 14.9% 5.4pct ~ 15.3mn 19.9% 23.6% 3.7pct 62.7% Car parc of traditional 44.6% % of ownership for 41.6% luxury brands 3.
Slide 4: Customer-centric Orientation and Brand-agnostic Operations
Customer-centric Orientation and Brand-agnostic Operations New Car Servicing and OEM Collision Cleaning and Used Car Customer Insurance Courtesy Roadside Hainan Brand-agnostic Sales Maintenance Warranty Repair Detailing Sales Service Renewal Car Assistance Mobility Operations Customer Engagement Cus
Slide 5: Centralized Operations Driving Growth in All Business Segments
Centralized Operations Driving Growth in All Business Segments Taking the aggregated data from Shenzhen, Dalian, Chengdu and Nanjing (the leading core cities in four regions) as an example1 % whose vehicles not originally sold by Zhongsheng 5 +7% # of dealership # of servicing / 20% stores reduced m
Slide 6: Zhongsheng Strategy Execution Guiding Principles
Zhongsheng Strategy Execution Guiding Principles Prioritizing Local Concentration Prioritizing Customer Engagements Prioritizing Facility Operating and Local Density through Diversified Value Offerings3 Efficiency Optimization Sole Authorizations Active customers Optimizing revenue 12 Cities 9 Citie
Slide 7: Zhongsheng Branded Auto Services Pivotal Strategy Creates a Virtuous Circle
Zhongsheng Branded Auto Services Pivotal Strategy Creates a Virtuous Circle Customers Serviced Units Serviced (’000) (’000) 8,048 4,194 3,788 9.2% 15.4% 7,467 7.5% 3-year CAGR 3-year CAGR 3-year CAGR 10,216 2023 2024 2023 2024 9,294 After-sales Services Revenue 2023 2024 Insurance Policies Brokered
Slide 8: New Car Sales Brand Mix and Market Share in Core Cities
New Car Sales Brand Mix and Market Share in Core Cities 436 Dealership Stores Mid-to-high-end Brands – Luxury Brands – 288 dealership stores1, 2 148 dealership stores2, 3 30% 53% 24% 19% 32% 10% 111 56 107 2 17% 22% 19% 33% 5% 5% 6% 3% 24 33 25 20 39% 41% 24% 10% 12% 2% 21 16 20 Number of Stores Mar
Slide 9: Business Presence in Core Cities
Business Presence in Core Cities 32 Core Cities Dalian 2 Liaoning 1 Yantai and 1 Qingdao 1 Heibei Jiangsu 2 Zhejiang 1 (Shenyang) Weihai (Shijiazhuang) (Nanjing) (Hangzhou) Stores 22 Stores 21 Stores 13 Stores 12 Stores 12 Stores 28 Stores 17 Customers 260k Customers 220k Customers 90k Customers 100
Slide 10: Stable Growth from the Used Car Business
Stable Growth from the Used Car Business Used car price under pressure against More policies driven Continuous improvements on cut-throat new car price competition aged vehicle transactions Zhongsheng used car operations RMB1.3bn ~RMB5.7k New car price index1 Zhongsheng used car transactions by vehi
Slide 11: Aggregate Profit (Gross Profit + Commission Income) Reconciliation
Aggregate Profit (Gross Profit + Commission Income) Reconciliation (RMB bn) As disclosed in financial reports 19.8 17.9 14.9 1.1 3.9 1.2 0.9 0.5 4.1 4.2 After- Accessories and Commission 3.8 New packages gross profit Used car sales income car gross services New Used After- New Used After- 11.6 11.8
Slide 12: Proactive and Prudent Liabilities Management
Proactive and Prudent Liabilities Management • Diverse and accessible funding sources through proactive and effective liabilities management • Successfully tapped diversified onshore and offshore refinancing channels, including but not limited to: ✓ Jul 2024: issuance of US$600mn 3.5-year senior uns
Slide 13: Revenue Breakdown
Revenue Breakdown Total Revenue Accessories, Packages and After-sales Services Revenue (RMB bn) (RMB bn) Change: (6.2)% Growth: 9.1% 179.3 27.4 168.1 25.1 14.0 15.4 5.4 25.1 5.0 27.4 140.2 125.3 20.1 22.0 2023 2024 2023 2024 New car Accessories, packages and after-sales services Used car After-sales
Slide 14: Vehicle Sales Breakdown
Vehicle Sales Breakdown New Car Sales Volume Used Car Sales Volume (units) (units) Change: (3.2)% Growth: 37.9% 501,570 485,307 226,231 164,109 196,788 191,937 304,782 293,370 2023 2024 2023 2024 Luxury brands Mid-to-high-end brands New Car Sales Volume by Brand New Car Sales by Brand Luxury Luxury
Slide 15: Aggregate Profit Breakdown
Aggregate Profit Breakdown New Car Gross Profit Accessories, Packages and After-sales Services Gross Profit (RMB mn) (RMB mn) Margin 0.8% (2.6)% Margin 46.9% 46.2% 1,058 12,651 11,766 2,472 49.3% 2,435 45.3% 9,294 46.3% 10,216 46.4% (3,208) 2023 2024 2023 2024 After-sales services gross profit Acces
Slide 16: Operational Expenses
Operational Expenses Selling and Distribution Expenses Administrative Expenses (RMB mn) (RMB mn) As % of 4.3% 4.5% As % of 1.3% 1.3% revenue revenue 7,737 2,419 7,553 2,229 2023 2024 2023 2024 Finance Costs Absorption Ratio1 (RMB mn) (%) As % of 0.8% 0.9% revenue 111% 101% 1,507 1,573 2023 2024 2023
Slide 17: Other Financial Metrics
Other Financial Metrics Total Assets / Net Assets ROA and ROE (x) (%) Net income 4.99bn 3.07bn 2.2 2.3 11.1% 6.6% 5.1% 2.9% 2023 2024 2023 2024 ROA ROE Adj. Debt / EBITDA1 Interest Coverage2 (x) (x) 3.9 7.0 5.4 2.7 2023 2024 2023 2024 1 Debt is adjusted debt, including trade and bills payables, excl
Slide 18: Financial Highlights
Financial Highlights (RMB mn) 2023 2024 Cash and cash equivalent 15,612 18,688 Time deposits 1,955 924 Pledged bank deposits 1,916 3,332 Cash in transit 118 60 Cash, cash equivalent and cash in transit 19,601 23,004 Cash flow from operating activities 6,426 3,439 (-) Capex1 1,136 826 (-) Lease payme
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