ZhongSheng Holdings (00881) saw its share price climb more than 5% during the closing session on Wednesday. At the time of writing, the stock was trading 4.5% higher at HK$4.30, with turnover reaching HK$43.84 million.

The move comes as the company released its interim results, showing that revenue for the first half of the year reached RMB 63.02 billion. Net profit attributable to shareholders stood at RMB 111 million, a decline compared to the same period last year, but a significant recovery from the full-year net loss of RMB 1.67 billion recorded in 2025, marking a return to profitability.

Notably, the new car business showed substantial improvement in the first half of 2026, contrasting sharply with the negative gross margin of -3% seen in 2025. The gross loss on new vehicles narrowed dramatically by 72.8%, from RMB 2.13 billion to RMB 580 million. While the new car gross margin improved from -4.1% to -1.4%, it remains in negative territory. However, the improving trend is evident and signals a positive trajectory for the segment.

At the gross profit level, the group's total gross profit expanded by 20.0% year-over-year, emerging as one of the most critical operational improvement indicators in this reporting period.