New | Car dealer Zhongsheng’s earnings jump 18.6pc
Chinese car dealer Zhongsheng Group said its first-half earnings rose 18.6 per cent, driven by steady growth in the country’s vehicle sales and increased contribution from after-sales services.
Net profit for the six months to June increased to 580 million yuan (HK$729 million) from 489 million yuan a year before, the company said in a statement to the Hong Kong stock exchange on Monday.
Revenue grew 8.8 per cent to 26.8 billion yuan while sales costs jumped 8.6 per cent to 24.2 billion yuan.
The company’s number of dealerships stood at 180 in 17 provinces and regions and about 70 cities at the end of June. The Dalian-based car dealer’s brand portfolio includes 70 luxury brands such as Mercedes-Benz, Audi, Jaguar Land Rover and Porsche, as well as 110 medium to high-end brands.
Revenue from new car sales, which accounted for 86.9 per cent of the total, rose 6.9 per cent to 23.3 billion yuan. Revenue from after-sales and accessories business grew 23.7 per cent to 3.5 billion yuan, with contribution to total revenue increasing to 13.1 per cent from 11.6 per cent in the same period last year.
No dividend was declared.
Shares in Zhongsheng rose 0.11 per cent to HK$8.96 in morning trade.
