ZHONGSHENG HLDG (00881) announced its annual results for the period ending December 31, 2025. The group reported total revenue of 164.403 billion yuan, with a gross profit of 8.838 billion yuan. However, the company recorded a net loss attributable to shareholders of 1.673 billion yuan. In 2025, ZHONGSHENG achieved sales of 497,000 new vehicles, representing a 2.5% year-on-year increase. This was accomplished through timely and effective optimization of its brand portfolio, leveraging traditional brands to stabilize its core business while capturing growth opportunities in the new energy vehicle segment. The sales proportion of luxury brands rose to 62.6%, while the AITO brand contributed 8.2%, effectively offsetting the decline in sales of traditional fuel-powered vehicles. Since the second half of 2024, the company has undertaken a large-scale adjustment of its dealership network, closing or consolidating 50 underperforming or redundant stores. Concurrently, ZHONGSHENG focused on strengthening its market concentration and density, optimizing property operational efficiency by opening 104 new brand stores and service centers, including 84 brand outlets and 20 maintenance service centers. By the end of 2025, the number of brand stores reached 453, with 46 service centers. Moving forward, the company will continue to deepen its development strategy centered on high quality, efficiency, and profitability, steadfastly advancing the optimization and upgrade of its network. Further closures of underperforming stores are planned, with purchasing and sales strategies to be dynamically adjusted based on the profitability of various brands and models. The company will also cease procurement and sales of loss-making models as needed to enhance overall network profitability and asset efficiency. ZHONGSHENG aims to increase its market share and influence in leading brands, focusing its network expansion on markets where it holds a dominant local position. Additionally, the company is accelerating its embrace of opportunities in the new energy vehicle industry. Building on the successful operation of the AITO brand, it plans to further expand into Huawei's ecosystem of automotive brands and strengthen strategic cooperation with Geely. The goal is to achieve a multiple increase in the number of new energy vehicle stores by the end of 2026.
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