China MeiDong Auto warns of significant 2024 loss
China MeiDong Auto Holdings (HKEX:1268) has issued a profit warning, anticipating a loss attributable to equity shareholders of approximately RMB2.3 billion for the year ended December 31, 2024. This contrasts sharply with a profit of roughly RMB0.1 billion in 2023. The company attributes the expected loss to the impact of a price war within the Chinese automobile market during the second half of 2024, compounded by macroeconomic headwinds. This resulted in non-cash impairments on goodwill and dealership rights totaling approximately RMB3 billion, including RMB2.8 billion in the second half of the year, impacting under-performing units. Despite the anticipated loss, the company highlights its healthy cash flow, having recently redeemed HK$2.75 billion in convertible bonds. The company says it will consider returning value to shareholders. The full annual results are expected to be released by the end of March 2025.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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