According to the Zhitong Finance App, Zhengtong Auto (01728) announced that despite a steady increase in revenue in 2023, gross margin declined due to intense competition and falling sales prices. It is expected that the Group's net loss for the year ended December 31, 2023 will not exceed RMB 830 million, while the net loss for the year ended December 31, 2022 was approximately RMB 297 million.

The board of directors believes that although the company's business development trend is still good, the group experienced this net loss due to fierce competition in the automobile dealership industry, insufficient consumer demand in the overall market, and the decline in average sales prices of active brand cars.