China Meidong Auto Holdings Limited (Meidong Auto) has issued a profit warning, expecting a shareholder's loss of no more than RMB 30 million in the first half of 2024, compared to a profit of approximately RMB 44.7 million in the same period of 2023. The loss is mainly due to weak market demand, price decline, macroeconomic factors, weakened consumer spending power, supply-demand imbalance, and the impact of promotional models. In addition, the company has conducted impairment assessment on several cash generating units, confirming a non-cash impairment of approximately RMB 15 million for goodwill and dealer rights, as well as non-cash costs related to convertible bonds issued by Sail Vantage Limited of approximately RMB 50.6 million. Despite this, the board of directors believes that the group's operational cash flow is normal and the overall financial condition is solid. The company will release a more detailed mid-year performance announcement by the end of August 2024. Shareholders and potential investors should proceed with caution.

China Meidong Auto Holdings Limited (Meidong Auto) has issued a profit warning, expecting a shareholder's loss of no more than RMB 30 million in the first half of 2024, compared to a profit of approximately RMB 44.7 million in the same period of 2023. The loss is mainly due to weak market demand, price decline, macroeconomic factors, weakened consumer spending power, supply-demand imbalance, and the impact of promotional models. In addition, the company has conducted impairment assessment on several cash generating units, confirming a non-cash impairment of approximately RMB 15 million for goodwill and dealer rights, as well as non-cash costs related to convertible bonds issued by Sail Vantage Limited of approximately RMB 50.6 million. Despite this, the board of directors believes that the group's operational cash flow is normal and the overall financial condition is solid. The company will release a more detailed mid-year performance announcement by the end of August 2024. Shareholders and potential investors should proceed with caution.