China Yongda Automobiles Services Holdings Limited (Yongda Auto) reported unaudited interim revenue of RMB20.85 billion for the six months ended 30 June 2026, down 23.00% year-on-year. The decline stemmed chiefly from weaker new-vehicle demand for traditional fuel brands, with overall new-car sales volume falling 17.90% to 59,500 units.

Gross profit retreated 16.10% to RMB1.99 billion, yet the gross margin edged up to 9.50% from 8.80% a year earlier, helped by tighter cost control and a 14.00% reduction in combined selling, administrative and finance expenses to RMB2.05 billion.

The group recorded a consolidated profit of RMB11 million, reversing the RMB401 million adjusted loss in 2H 2025 but well below the RMB54 million adjusted profit in 1H 2025. Profit attributable to shareholders was RMB27 million.

Segment performance: • New-vehicle revenue dropped 26.90% to RMB15.01 billion, with luxury and ultra-luxury brands down 26.20% and mid- to high-end brands down 31.30%. Sales of independent new-energy brands under the dealership model rose 34.20% to RMB1.64 billion. • Pre-owned vehicle revenue slipped 18.70% to RMB1.27 billion; unit sales fell 25.70% to 11,516. • After-sales services revenue eased 7.10% to RMB4.45 billion, while the repair and maintenance gross margin held at 39.70%. • Automobile operating lease revenue fell 25.30% to RMB147.04 million.

Cash generation remained solid: operating cash flow reached RMB1.17 billion, flat year-on-year, and inventories were cut 20.90% to RMB2.86 billion, trimming vehicle turnover to 31.3 days. Net gearing declined to 0.0% from 8.5% at end-2025 on lower borrowings and higher cash.

Capital expenditure totaled RMB215 million, mainly for test-drive and lease vehicles plus outlet upgrades. The dealer network shrank by six outlets to 203, reflecting eight closures of traditional luxury stores and four openings for independent new-energy brands.

In view of the results and current market conditions, the board did not declare an interim dividend. The company will continue focusing on inventory discipline, cash preservation and selective expansion in new-energy and embodied-intelligence service initiatives.