Auto dealers recorded the highest decline. As of press release, Meidong Auto (01268) fell 5.77% to HK$2.94; Zhongsheng Holdings (00881) fell 5.09% to HK$13.06; and Yongda Motor (03669) fell 3.24% to HK$2.39.
The Zhitong Finance App learned that car dealers had the highest decline. As of press release, Meidong Auto (01268) fell 5.77% to HK$2.94; Zhongsheng Holdings (00881) fell 5.09% to HK$13.06; and Yongda Auto (03669) fell 3.24% to HK$2.39.
According to the news, the results of the “Auto Dealer Inventory” survey recently released by the China Automobile Dealers Association showed that the comprehensive inventory coefficient for car dealers in February was 1.74, up 26.1% from the previous month, down 9.8% from the previous year, and the inventory level was above the warning line. The China Automobile Dealers Association pointed out that due to reasons such as dealer inventory replenishment at the end of February and terminal sales falling short of expectations, most brands had relatively high inventory levels.
Furthermore, according to an investigation report previously released by the China Automobile Dealers Association, the expansion of the market size does not mean that the operating profits of operators are rich. In particular, the new car price war has seriously eaten up the profits that dealers should have made, and the survival situation of car dealers is still quite difficult. Among them, in the dealer profit structure, new car sales losses are serious, and the gross profit contribution of new cars is negative.