Analysis of Net Profit of Automobile Listed Dealer Group in the First Half of 2012

In the first half of this year, the revenue of China’s four listed car dealership groups (Big Group, Zhongsheng Holdings, Yaxia Auto and Zhengtong Automobile) totaled 68.604 billion yuan, up 35% year-on-year, while net profit declined by more than 20% to 987 million yuan. yuan.

In terms of revenue, the sales of the four listed automobile dealership groups all increased in the first half of this year. Among them, Zhengtong Automobile and Zhongsheng Holdings, which focus on sales of mid- to high-end and luxury cars, saw the fastest growth in revenue: Zhengtong Automotive's operating revenue soared 127.4% year-on-year to 13.683 billion yuan; Zhongsheng’s revenue was also close to five. The increase in growth was 48% year-on-year to 24.257 billion yuan. Its main benefit is that the luxury car market continues to grow rapidly.



In terms of net profit, both the Group and Zhongsheng Holdings both experienced a drop in net profit in the first half of this year. The huge group net profit fell by more than 40% (42.3%) year-on-year to 233 million yuan. According to its financial report, this was mainly due to the fact that the cost of its various periods increased by a large margin (an increase of 647,805,100 yuan over the same period of last year, an increase of 29.75%). Zhongsheng Holdings’ net profit was 371 million yuan, which was a drop of nearly 30% from the same period of last year.

The net profit of Zhengtong Auto and Ya Xia Automobile both increased. In the first half of this year, Zhengtong Automobile's net profit increased by 12.6% year-on-year to RMB330 million. The net profit of the Auto Group of Asia Motors increased by 6.5% year-on-year to RMB53.52 million.



From a business perspective, in the first half of this year, the four listed auto dealers still focused on auto sales, and the auto sales business accounted for about 90% of their total operating revenue. Although the auto sales business has a higher contribution rate to revenue, its contribution to gross profit is much lower than the revenue contribution rate. In the first half of this year, the contribution rate of gross profit of car sales of the four listed auto dealers decreased to below 60%, of which, the contribution rate of auto sales of the Yaxia Auto Group fell to 41.8%.



With the widespread start of the car price war, in terms of the gross profit rate of car sales, the gross profit margin of automobile sales of the Group was the highest in the first half of this year, which was 7.3%; followed by Zhengtong Automobile and Zhongsheng Holdings, which were 5.5% and 5% respectively. However, the sales margin of the automobile sales of Yaxia Auto was only 3.4%. However, compared with the same period of last year, gross profit margins of automobile sales of the four listed car dealership groups all decreased: the gross profit margins of Zhongsheng Automotive, Zhengtong Automotive and Yaxia Auto in the first half of the year were both 2% lower than the same period of last year. The group also has a 0.2 percentage point drop.