China Yongda reports significant loss amidst automotive market headwinds

China Yongda Automobiles Services Holdings Limited announced a significant loss of 3,484.6 million yuan for the six months ended June 30, 2025, a stark contrast to the 101.5 million yuan profit in the same period of 2024. This was largely driven by 3,552.8 million yuan in impairment losses on intangible assets, property, plant, equipment, right-of-use assets, and goodwill. Total revenue decreased by 12.8% to 27,071.9 million yuan from 31,035.8 million yuan year-on-year, attributed to reduced new vehicle sales volume and average selling prices.

Despite the overall decline, the company reported a 49.0% increase in sales volume for independent new energy brand vehicles, reaching 10,312 units, with after-sales repair revenue for these brands growing by 75.8% to 215.59 million yuan. The group also saw an increase in net cash generated from operating activities by 66.9% to 1,167 million yuan. The net gearing ratio improved slightly to 9.8% as of June 30, 2025.

The board has resolved to distribute an interim dividend of 0.070 yuan per share for the six months ended June 30, 2025 (HK$0.07678 per share). Additionally, the company repurchased 30,860,000 ordinary shares for an aggregate consideration of HK$74,825,230.80 during the first half of 2025, with 30,860,000 shares subsequently cancelled.