The Zhitong Finance App learned that car dealers have collectively declined. As of press release, Meidong Auto (01268) fell 5.5% to HK$2.92; Zhongsheng Holdings (00881) fell 5.34% to HK$14.54; and Yongda Auto (03669) fell 2.22% to HK$2.2.
According to the news, the 2023 financial reports of eight Hong Kong stock car dealers have been released one after another. Among them, the net profit of 5 companies declined year-on-year in 2023. Net profit of Zhongsheng Holdings was 5,018 billion yuan, down 24.97% year on year; Yongda Auto's net profit was 586 million yuan, down 60.16% year on year; Meidong Auto's net profit was 156 million yuan, down 71.98% year on year; and Baidley Holdings' net profit was 84 million yuan, down 65.25% year on year. Zhengtong Auto lost 820 million yuan in 2023, up about 176.1% year on year; gross profit was 1.09 billion yuan, down 36% year on year.
A previous investigation report by the China Automobile Dealers Association indicated that in 2023, the external environment of the automobile market was complicated, and terminal transaction prices continued to drop, affecting almost all manufacturers and all models. The price war was unprecedented. Under the influence of multiple factors, domestic sales of passenger cars achieved year-on-year growth, but it is worth noting that the increase in sales scale does not mean that dealers are profitable. In particular, the new car price war has eroded dealers' profits, so the survival situation of car dealers is still worrying.