MeiDong Auto (01268) announced its 2023 results, with revenue of RMB 28.555 billion, a year-on-year decrease of 0...
According to the Zhitong Finance App, MeiDong Auto (01268) announced its 2023 results, with revenue of RMB 28.555 billion, a year-on-year decrease of 0.3%. Gross profit was about 2,078 billion yuan, a year-on-year decrease of 17.46%; profit attributable to the company's equity shareholders was 140 million yuan, a year-on-year decrease of 73.09%; basic earnings per share were 10.44 points, and the final dividend was 0.033 yuan per share.
According to the announcement, the decrease in net profit was mainly affected by intense competition in the overall market, in addition to the additional costs mentioned above. Overall gross margin decreased by 1.5 percentage points to about 7.3%. Among them, the new passenger car sales business was affected by two factors: weak market demand and falling prices. Gross margin fell 4.0 percentage points to about -0.6%, while the gross margin of the after-sales service business increased 4.7 percentage points to about 53.7%.
During the year, despite the difficult operating environment, the group continued to focus on stability and continued to maintain efficient inventory turnover to reduce business uncertainty. In terms of automobile sales, in a situation where the market lacks purchasing momentum and visibility, the Group actively accelerates turnover. The number of inventory turnover days reaches 12 days to increase the speed of cash flow return. At the same time, reducing inventory in the downside market, it can also avoid the risk of greater losses in the future. In terms of after-sales service, the Group continued to maintain good growth and stable gross margin performance. The zero service absorption rate reached 116.7%, which supported the overall performance. The Group also strictly controlled costs and expenses. Operating expenses (distribution costs, administrative expenses and financing costs) as a share of revenue fell 0.1 percentage points to 6.7% year-on-year during the year, and the balance sheet and cash flow situation remained healthy.