Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — H1 2025 Earnings Presentation
22 slides from Zhongsheng's earnings presentation, 2025
Slide 1: Interim Results 2025
ZHONGSHENG GROUP 2025
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 Premium 229k units 14.6% Positioning New Car Sales Volume Market Share of Luxury Brands1 Brand 4.54mn 3.80mn Reputation Active Customers2 Zhongsheng GO Subscribers Auto 111k units 4.00mn Servic
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% ~ 16.0mn 19.9% 23.6% 5.4pct 62.3% Car parc of traditional 44.6% 3.7pct % of ownership for ALL luxury luxury bran
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: Business Presence in Core Cities
Business Presence in Core Cities 32 Core Cities 4 1 1 1 3 1 Dalian Liaoning Yantai & Qingdao Hebei Jiangsu Zhejiang (Shenyang) Weihai (Shijiazhuang) (Nanjing) (Hangzhou) Stores 23 Stores 23 Stores 13 Stores 12 Stores 12 Stores 28 Stores 17 Customers 286k Customers 234k Customers 94k Customers 103k C
Slide 6: New Car Sales Brand Mix and Market Share in Core Cities
New Car Sales Brand Mix and Market Share in Core Cities 439 Dealership Stores1 Mid-to-high-end Brands – Luxury Brands – 293 dealership stores2 146 dealership stores3 32% 52% 24% 19% 32% 10% 108 58 107 18% 26% 56% 29% 8% 5% 13% 2% 36 26 25 19 26% 62% 26% 5% 14% 2% 23 14 19 Number of Stores Market Sha
Slide 7: Guiding Principles of Strategy Execution: Local Concentration Focus
Guiding Principles of Zhongsheng Strategy Execution: Local Concentration Focus 奔驰 丰田 雷克萨斯 沃尔沃 奥迪 捷豹路虎 问界 宝马 Others Total # of stores with 53 17 44 24 13 9 10 6 27 203 local dominance1 # of local sole dealership stores 15 16 15 12 5 5 4 2 13 89 (inclusive) 203 89 46%+ # of stores with # of local sole
Slide 8: Guiding Principles of Strategy Execution: Facility Operational Efficiency Improvement Focus
Guiding Principles of Zhongsheng Strategy Execution: Facility Operational Efficiency Improvement Focus Case Study #1 Case Study #2 Stores conversion to collision centers Structure reconfiguration Streamline facility configuration and enhance operational efficiency Before Before Focus on incremental
Slide 9: New Car Business is about to Bottom Out
New Car Business is about to Bottom Out Though OEM subsidies help alleviate pressure on dealers, the key to improving new car sales gross margin lies in dealership network consolidation and competitive new product offerings by OEMs New Car Gross Profit Margin Bridge (Last 18M Cumulative) 2.8% 0.8% (
Slide 10: New Car Business is about to Bottom Out (Cont'd)
New Car Business is about to Bottom Out (Cont’d) 1 Accelerated consolidation among dealers 2 Entering into a major new product cycle 3 Counter ”Nei Juan” measures taking effect Further improving Zhongsheng's Regulatory authorities and state Major brands are about to enter business density and brand
Slide 11: Branded Auto Services Pivotal Strategy Creates a Virtuous Circle
Zhongsheng Branded Auto Services Pivotal Strategy Creates a Virtuous Circle Active Customers Serviced Units Serviced (’000) (’000) Growth: 7.8% Growth: 15.2% Growth: 10.7% 8,048 7,467 Growth: 1.7% 4,542 Growth: 9.9% 4,194 3,941 3,936 4,003 3,788 10,216 9,294 Growth: 8.1% 5,035 5,441 2023 2024 1H2024
Slide 12: Solid Growth in After-sales Services Business
Solid Growth in After-sales Services Business Zhongsheng has had a major round of facility/outlet reshuffling since November 2024 57 20 37 Newly-added Newly-added Dealership stores dealership stores collision centers closed-down Delicate planning and efficient management offsetting negative impact o
Slide 13: Solid Growth in After-sales Services Business (Cont'd)
Solid Growth in After-sales Services Business (Cont’d) Key Growth Drivers for After-sales Services 1 Ramp up of newly-added stores 3 Continuous growth from existing stores 3-1 Organic growth through growing customer base Omni-channel and Customer acquisition Customer base full-fledged services and r
Slide 14: Stable Used Car Business
Stable Used Car Business Used car price under pressure against More policies driven Improvement on structure and profit cut-throat new car price competition aged vehicle transactions of Zhongsheng used car operation New car price index1 Zhongsheng used car transactions by vehicle age 100% Used car 4
Slide 15: 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 3.9 1.1 1.2 0.5 0.9 4.2 After- Accessories and Commission income 3.8 4.1 New packages gross profit Used car sales 6.9 6.1 car 0.6 0.3 gross services 12.7 1.9 1.8 gross New Use
Slide 16: Proactive and Prudent Liability and Liquidity Management
Proactive and Prudent Liability and Liquidity Management Total Debt / Net Debt1,2 Existing Debt Maturity Profile2 ⚫ Diverse and accessible (RMB bn) (RMB bn) funding sources through proactive and effective Financing cost 2.9% 2.5% 29.3 liabilities management to 45.1 continuously improve debt 39.8 str
Slide 17: Revenue Breakdown
Revenue Breakdown Total Revenue Accessories, Packages and After-sales Services Revenue (RMB bn) (RMB bn) Change: (6.2)% Change: 9.1% 179.3 27.4 Change: 0.1% 168.1 Change: (6.2)% 25.1 14.0 15.4 5.4 25.1 5.0 27.4 82.4 77.3 13.4 13.4 8.2 6.0 22.0 2.4 1.9 140.2 125.3 20.1 13.4 13.4 60.8 57.9 11.0 11.4 2
Slide 18: Vehicle Sales Breakdown
Vehicle Sales Breakdown New Car Sales Volume Used Car Sales Volume (units) (units) Change: (3.2)% Change: 37.9% Change: (1.7)% 501,570 485,307 226,231 Change: 9.6% 196,788 191,937 164,109 232,543 228,649 101,525 111,244 304,782 293,370 89,909 86,243 142,634 142,406 2023 2024 1H2024 1H2025 2023 2024
Slide 19: 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)% (3.3)% (4.1)% Margin 46.9% 46.2% 47.1% 47.4% 1,058 11,766 12,651 2,472 2,435 49.3% 45.3% 6,298 6,340 52.5% 46.6% 10,216 1,263 900 9,294 (1,990) (2,388) 46.
Slide 20: Operational Expenses
Operational Expenses Selling and Distribution Expenses Administrative Expenses (RMB mn) (RMB mn) As % of As % of 4.3% 4.5% 4.2% 4.4% 1.3% 1.3% 1.3% 1.4% revenue revenue 7,737 7,553 2,419 2,229 3,447 3,434 1,091 1,099 2023 2024 1H2024 1H2025 2023 2024 1H2024 1H2025 Finance Costs Absorption Ratio1 (RM
Slide 21: Other Financial Metrics
Other Financial Metrics Total Assets / Net Assets ROA and ROE (x) (%) Net 4.99bn 3.07bn 1.50bn 0.92bn Income 2.2 2.3 2.3 2.3 11.1% 6.6% 6.5% 5.1% 3.9% 2.9% 2.9% 1.7% 2023 2024 1H2024 1H2025 2023 2024 1H2024 1H2025 ROA ROE Adj. Debt / EBITDA1 Interest Coverage2 (x) (x) 3.9 4.1 7.0 3.3 5.4 5.6 5.1 2.7
Slide 22: Financial Highlights
Financial Highlights (RMB mn) 2023 2024 1H2024 1H2025 Cash and cash equivalent 15,612 18,688 17,146 12,859 Time deposits 1,955 924 1,897 4,055 Pledged bank deposits 1,916 3,332 1,810 2,999 Cash in transit 118 60 349 124 Cash, cash equivalent and cash in transit 19,601 23,004 21,202 20,037 Cash flow
Zhongsheng Group Holdings — H1 2025 Earnings Presentation on 6ix