Zhengtong Auto (01728.HK) announced on August 29th that for the six months ending on June 30, 2024, its revenue declined by approximately 19.8% to approximately RMB 9.876 billion, primarily due to a decrease in the number of new car sales and the selling price of new cars. The overall gross profit decreased by approximately 71.9% to approximately RMB 0.177 billion, with a gross margin decrease of 3.3 percentage points to 1.8%, mainly due to a decrease in the average selling price of new cars. The company incurred a loss of approximately RMB 0.635 billion during the period, compared to a loss of approximately RMB 0.386 billion during the same period in 2023, mainly due to a decline in sales revenue and gross profit margin of new car sales. The basic loss per share was approximately RMB 25. The net cash inflow from operating activities was approximately RMB 0.147 billion, compared to a net cash outflow of approximately RMB 0.446 billion in the same period last year.

During the reporting period, factors such as price impact and market sentiment fluctuations brought about by new energy and new modes have further intensified competition in the domestic automotive market. Influenced by the aforementioned factors, the group's new car sales volume and selling price decreased, leading to a larger net loss compared to the same period in 2023. Based on confidence in the long-term stability and improvement of the Chinese automotive circulation industry, the group's board of directors and management are determined to adhere to the main line of luxury and ultra-luxury brand car sales, implement adjustments in operational strategy, business transformation and upgrading, cost reduction and efficiency improvements, actively explore emerging businesses, and expand the international market. It is believed that with the support of state-owned and social shareholders, the company can achieve positive development by continuously consolidating its existing advantages and making progressive adjustments.