Zhongsheng Group Holdings Ltd. · HKEX:881
Zhongsheng — FY2025 Earnings Presentation
28 slides from Zhongsheng's earnings presentation, 2025
Slide 1: Embrace Changes for Growth, Unite Strength for the Future: 2025 Annual Results
Embrace Changes for Growth Unite Strength for the Future 2025 Annual Results
Slide 2: Table of Contents
Table of Contents 01 Results Overview 02 Financial Review 03 Business Review 04 Outlook 05 Appendix
Slide 3: Results Overview
01 Results Overview
Slide 4: Results Overview
Results Overview (RMB mn) 2024 2025 Change New car sales volume (units) 485,307 497,316 2.5% Pre-owned car sales volume (units) 226,231 221,213 (2.2)% After-sales services visits (’000 units) 8,048 8,067 0.2% Number of dealership stores 423 453 30 thereof: Traditional brands stores 403 413 10 New en
Slide 5: Financial Review
02 Financial Review
Slide 6: Revenue Breakdown
Revenue Breakdown Total Revenue Accessories, Maintenance Packages and After-sales Services Revenue (RMB bn) Change: (2.2)% (RMB bn) Change: (4.7)% 168.1 164.4 27.4 26.1 15.4 12.4 5.4 3.2 27.4 26.1 125.3 125.9 22.0 22.9 2024 2025 2024 2025 New car Accessories, packages and after-sales services Pre-ow
Slide 7: Operational Expenses
Operational Expenses Selling and Distribution Expenses Administrative Expenses (RMB mn) (RMB mn) As % of 4.5% 4.8% As % of 1.3% 1.4% revenue revenue 7,553 7,827 2,309 2,129 2024 2025 2024 2025 Finance Costs Absorption Ratio1 (%) (RMB mn) As % of 0.9% 0.9% revenue 112% 1,573 1,528 103% 2024 2025 2024
Slide 8: Aggregate Profit Breakdown
Aggregate Profit Breakdown New Car Gross Profit Accessories, Packages and After-sales Services Gross Profit (RMB mn) (RMB mn) Margin (2.6)% (2.9)% Margin 46.2% 46.0% 12,651 12,012 2,435 45.3% 962 30.1% (3,208) (3,709) 10,216 11,050 46.4% 48.2% 2024 2025 2024 2025 After-sales services Accessories and
Slide 9: Aggregate Profit (Gross Profit + Commission Income) Reconciliation
Aggregate Profit (Gross Profit + Commission Income) Reconciliation (RMB bn) 22.0 As disclosed in financial reports 19.8 17.9 14.9 6.2 3.9 1.1 0.9 1.2 11.4 0.5 0.5 4.2 0.5 Accessories and 3.5 3.8 4.1 2.6 Pre- After- packages gross profit Commission income New car owned sales 12.7 gross car services P
Slide 10: Interest-bearing Debt and Liquidity
Interest-bearing Debt and Liquidity Debt Breakdown by Type Debt Breakdown by Maturity (RMB bn) (RMB bn) ⚫ Diverse and accessible funding Avg. cost of 29.2 sources through proactive and Interest-bearing 3.9% 3.6% effective liabilities management to debt continuously improve debt 35.4 10.9 structure a
Slide 11: Other Financial Metrics
Other Financial Metrics Adj. Profitability Adj. ROA and ROE (RMB mn) (%) 8,331 6.8% 4,075 3,170 3.0% 134 0.3% 0.1% 2024 2025 2024 2025 1 2 Adj. Net profit Adj. EBITDA ROA 3 ROE 3 Net Debt4 / Adj. EBITDA Adj. Interest Coverage5 (x) (x) 5.3 3.5 2.7 2.2 2024 2025 2024 2025 1 Adjusted net profit is the
Slide 12: Business Review
03 Business Review
Slide 13: Network Structure Optimization
Network Structure Optimization Changes from Jul 2024 to Dec 2025 Major Dealer Network Reshuffling 40 Newly-added Stores Exited Stores 29 28 ✓ Over the past 18 months, the Company added 104 stores and collision 22 20 15 centers, and exited 50 stores - - ✓ Exiting, merging, suspending or transferring
Slide 14: Store Network by Core City
Store Network by Core City 32 Core Cities Dalian 3 Liaoning 1 Yantai & 2 Qingdao 2 Hebei Jiangsu 3 Zhejiang 1 (Shenyang) Weihai (Shijiazhuang) (Nanjing) (Hangzhou) Stores 23 Stores 23 Stores 13 Stores 12 Stores 11 Stores 29 Stores 19 Customers 278k Customers 213k Customers 95k Customers 104k Custome
Slide 15: Store Network by Brand
Store Network by Brand 453 Dealership Stores as of the end of 2025 Mid-to-high-end Brands – Luxury Brands – 310 dealership stores 143 dealership stores1 111 105 55 59 0 38 105 113 30 38 20 27 33 23 22 15 18 16 2 2 0 2 22 14 Number as of June 2024 Number as of the end of 2025 1 Other mid-to-high-end
Slide 16: Vehicle Sales Breakdown
Vehicle Sales Breakdown New Car Sales Volume Pre-owned Car Sales Volume (台) Change:2.5% (台) Change: (2.2)% 485,307 497,316 226,231 221,213 191,937 185,873 293,370 311,443 2024 2025 2024 2025 Luxury brands Mid-to-high-end brands New Car Sales Volume by Brand New Car Sales by Brand Brands 2024 2025 Br
Slide 17: New Car Sales Gross Margin Remained Negative
New Car Sales Gross Margin Remained Negative New Car Profitability New Car Sales Remain Gross Loss While Likely to Bottom Out (RMB mn) 2024 2025 Change ✓ Price inversion between procurement prices and actual selling prices has been prevailing among traditional brands. Back-loaded OEM subsidies fail
Slide 18: Traditional Brands New Car Profitability
Traditional Brands New Car Profitability Traditional Brands New Car Profit Margin Bridge (non-NEV brands only) GP3 GP31 GP3 5.2% GP3 Price cut 2.4% 2.4% 0.2% GP3 GP3 0.8% (1.3)% GP2 OEM (0.6)% (2.6)% OEM (2.6)% Price cut Price cut subsidy OEM (3.8)% (4.7)% subsidy (2.9)% (7.8)% GP2 GP21 OEM subsidy
Slide 19: Pre-owned Car Business Profit Weakened
Pre-owned Car Business Profit Weakened Pre-owned Car Sales Pre-owned Car Sales Price Under Pressure Amid New Car Price Competition New car price index2 2024 2025 Change 100% 95% Pre-owned car gross profit 1,230 535 (695) 90% 20.3% (RMB mn) Price drop 85% 80% ASP of pre-owned cars1 68 56 (17.6)% 75%
Slide 20: Solid Growth in After-sales Service Business
Solid Growth in After-sales Service Business After-sales Services (Maintenance, Warranty and Collision) 2024 2025 Change (RMB mn) Number of active 4,194 4,598 9.6% Structural Optimization in After-sales Service Business customers (’000) Generating Steady Gross Profit Growth After-sales visits 8,048
Slide 21: Continuously Building Zhongsheng Customer Ecosystem
Continuously Building Zhongsheng Customer Ecosystem Zhongsheng Go Online Centralized CRM Center New Media Operation System Membership Platform Points system offers curated products Breaks brand/store silos, manages Professional new media system taps and brand peripherals, unlocking the city-level cu
Slide 22: Outlook
04 Outlook
Slide 23: New Car Business – Challenges Remained among Traditional Brands
New Car Business – Challenges Remained among Traditional Brands XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Traditional OEMs are proactively Entering into a major new Accelerated consolidation alleviating dealers’ pressures on profit and cash flow product cycle among dealers Lower manufacturer’s suggested reta
Slide 24: New Car Business – Optimizing Traditional Brand Network and Expanding NEV Business
New Car Business – Optimizing Traditional Brand Network and Expanding NEV Business Adjust procurement and sales plan based on the profitability of brands GEELY Ecosystem and car models, and timely stop procurement and sales of loss- making models HUAWEI Ecosystem Dynamically set quarterly sales targ
Slide 25: Continued Growth in After-sales Services
Continued Growth in After-sales Services Strategic evolvement of collision centers: Optimize small-scale centers, focus on core cities, and expand large-scale independent centers Expand customer base through brand-agnostic operations and stimulate dormant customers via CRM centers and membership pla
Slide 26: Leaner Management, Lower Cost, Higher Efficiency
Leaner Management, Lower Cost, Higher Efficiency Enhance Premises Utilization Efficiency Fully leverage existing premises to develop Convert customer reception areas of collision new brand facilities through splitting, centers to new car sales showrooms to sharing or reuse extract more value of the
Slide 27: Appendix
05 Appendix
Slide 28: Financial Highlights
Financial Highlights (RMB mn) 2024 2025 Cash and cash equivalent 18,688 15,421 Time deposits 924 - Pledged bank deposits 3,332 4,937 Cash in transit 60 80 Cash, cash equivalent and cash in transit 23,004 20,438 Cash flow from operating activities 3,439 9,405 (-) Capex1 826 2,305 (-) Lease payments 1
Zhongsheng Group Holdings — FY2025 Earnings Presentation on 6ix