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- Lower underlying contribution of US$83 million from the Group’s 21% interest in Zhongsheng in 2024
- New car business continued to face volume and margin pressures
- Growth in auto after-sales and used car segments
2024 |
2023 |
Change (%) |
|
|---|---|---|---|
Underlying profit attributable to shareholders (US$ million) |
83 |
139 |
(41) |
Figures above are the Group’s interests in Zhongsheng
Strategic progress
- Partnered with Seres to distribute AITO vehicles
- Accelerated scaling of Zhongsheng-branded after-sales business
Value creation
Basic EPS* (RMB/share)
DPS* (HK$/share)
*Zhongsheng Group has not released its FY2024 results as of publication of this report.
Total shareholder return (%)
- Maintained EPS since 2019. Delivered significant after-sales growth to offset new car margin compression
- Solid DPS growth since 2019 reflects increasing payout on good cash generation
- TSR primarily reflects pressures on China’s new car market
- Executing strategic development of Zhongsheng-branded after-sales services to capitalise on customer relationships, brand and operational strengths
Strategic developments
Despite the reduction in Zhongsheng’s 2024 contribution and the sustained difficult market conditions it faces, we believe the business has strong market insights and solid operational capabilities to partner with the leading auto brands in China and to deliver on its strategic priorities, with an increasing focus on Zhongsheng-branded after-sales services and its used car business. Zhongsheng has also made recent encouraging progress in the EV segment by entering into a partnership with Seres, a leading new energy vehicle automaker in China, for the distribution and servicing of AITO electric vehicles.
300+
Dealership stores1.00 m
Active customers0
Collision centres in operationBusiness performance
The underlying net profit contribution from the Group’s 21% interest in Zhongsheng fell by 41% to US$83 million in 2024, as Zhongsheng’s new car business, which is concentrated in traditional premium brands, continued to face volume and margin pressures amid China’s EV transition and auto market competition. Lower profits from new car sales, however, were partially offset by growth in Zhongsheng’s auto after-sales and used car segments.
