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| In-depth Exploration and Layout in the Entire Industrial Chain |
HONG KONG, Aug 31, 2015 - (ACN Newswire) - Zhongsheng Group Holdings Limited ("Zhongsheng Group" or the "Company", and together with its subsidiaries, the "Group", Stock code: 881), a leading national automobile dealership group in China, today announced its interim results for the 6 months ended 30 June 2015 ("period under review").
In the first half of 2015, the overall growth of passenger vehicle production and sales has slowed down. China's automobile industry is going through multiple adjustments. Zhongsheng Group focuses on regional network coverage and combination advantages and in-depth exploration and layout in the entire industrial chain, business scale of the Group maintaining a stable growth. For the six-month period ended 30 June 2015, the Group recorded revenue of RMB26, 887 million, representing an increase of RMB101 million or 0.4% as compared to the corresponding period in 2014. Revenue from after-sales and accessories business amounted to RMB3,
645 million, representing an increase of RMB125 million or 3.5% as compared to the corresponding period in 2014, the proportion accounting for the total revenue raised to 13.6%. Income from other value added services which mainly consist of automobile financing, automobile insurance and second-hand automobile service for the six-month period ended 30 June 2015 increased by 24.1% to RMB416.3 million as compared to the same period of 2014.
During the period under review, new car sales volume for the six-month period ended 30 June 2015 increased by 7.8% to 104,236 units as compared to the same period of 2014. Divided by category, revenue from sales of luxury brand automobiles amounted to RMB15, 975 million, accounting for 68.7% of the revenue from new automobile sales. Revenue from sales of mid-to-high-end brand automobiles amounted to RMB7, 267 million, accounting for 31.3% of the revenue from new automobile sales.
Mr. LI Guoqiang, President, CEO and Co-founders of Zhongsheng Group, said, "During the first half of 2015, both the domestic and global economy were full of uncertainties and were subjected to more intense downward pressure. The growth rate of passenger vehicles market reduced to 4.5% in the first half of this year, while the market of sedans, the core products of passenger vehicles, even recorded a negative growth rate. Under such severe market conditions, China Association of Automobile Manufacturers has lowered its predicted growth rate of automobile production and sales industry for this year to a level of 3%.However, while the automobile industry is going through intensified adjustment, we also see broader opportunities in the field of circulation of the automobile. Facing complex and volatile market, Zhongsheng Group has strengthened its footholds, enhanced quality management and operating efficiency and formulated a sound and steady business layout. "
Zhongsheng Group has always been keeping focusing on regional network coverage of the dealerships and combination advantages and continuing to strengthen and expand to new regions leveraging on its current regional advantages. During the period under review, the total number of dealerships of the Group increased to 199, including 90 luxury brands dealerships and 109 mid-to-high-end brands dealerships, mainly locating in the region with strong purchasing power or high automobile purchasing potential, covering 19 provinces and regions and over 70 cities across China.
Mr. LI continued, "As of the mid of 2015, the automobile ownership for civilian use in China exceeded 150 million units, and it is expected that the size of the overall after-sales market will exceed RMB766 billion in 2015. The ownership of automobile in China is expected to exceed 200 million units in 2020. With the increasing ownership of private cars in China, automobiles are not simply a transport vehicle, but a kind of high-end commodity representing cultural taste. The automobile after-sales market is becoming a new growth point in the entire industrial chain. The value chain of automobile products does not end in the sales section. In contrast, it can be extended with greater coverage. After-sales services and extended service platform have already become an important industrial chain."
Facing the development opportunities brought about by the automobile after-sales market, Zhongsheng Group has been continuously enhancing quality management and operating efficiency, developing new services, products and programs as well as to further improve the quality of its services. The Group has always been actively promoting to increase the penetration rate of automobile financing. At the same time, by Ttaking advantage of its self-owned professional insurance agency license, ZhongshengGroup has further promoted its professionalism in intra-group insurance business. By way of regionalized promotion and internet+ technologies, the Group enhanced the management standard of insurance business.
Zhongsheng Group has launched Yi Hui Second-hand Automobile Authentication System, targeting at existing automobile owners who have upgrading demand and focusing on cross-brand upgrades and purchases within the brands offered by the Group. The Group has also actively responded to strategies for the second-hand automobile business of its cooperating brands and strengthened the business expansion in authentication of second-hand automobiles in dealerships' showroom.
In April 2015, Zhongsheng Yi Hui Financial Leasing Company Limited ("Zhongsheng Yi Hui"), which is established and 100% owned by Zhongsheng Group, was successfully set up in Shanghai Free Trade Zone. The establishment of Zhongsheng Yi Hui has provided Zhongsheng Group with more opportunities in cross-border financing and domestic and overseas business collaboration. Since its establishment, Zhongsheng Yi Hui has gradually constructed a good risk management system and financial system. It has also established 13 branches across the country and achieved a nationwide business layout.
Mr. HUANG Yi, Founder, Chairman & Executive Director of Zhongsheng Group, concluded, "We believe that Zhongsheng Group's strategic layout and arrangement in every segment of business is to help us to build up a complete industrial chain of "new automobiles - finance-insurance-after-sales and accessories-second-hand automobile".
With the intensified adjustment in the automobile industry, we continue to build a more solid foundation for rapid growth again after the adjustment of the industry in the future. Looking forward, confronted with the challenges posed by the transformation and upgrading of automobile market in China as well as the integration of automobile dealership industry, Zhongsheng Group is committed to grasping the opportunities brought forward by the era and achieving an ever-lasting development with its twenty years of experience in the industry, through a solid management foundation, sufficient capital level, comprehensive dealership network, all-round brand portfolio and ever-expanding industrial chain."
About Zhongsheng Group Holdings Limited
Zhongsheng Group was listed on the Main Board of the Hong Kong Stock Exchange on 26 March 2010. Zhongsheng Group is one of the leading national automobile dealership groups in China. The Group owns a comprehensive 4S dealership network nationwide, covering affluent cities and regions of China. Zhongsheng Group's existing brand portfolio covered luxury brands such as Mercedes-Benz, Audi, Lexus, Jaguar Land Rover, Porsche, Chrysler, Volvo and Imported Volkswagen, as well as mid-to-high-end brands such as Toyota, Nissan and Honda. The Group was the first company being granted dealership rights by Toyota and one of the first authorized dealerships for Lexus and Audi in China. The Group strives to develop "one-stop automobile shop" business model. In addition to new automobile sales business in its 4S dealerships, the Group's after-sales businesses offer spare parts, automobile accessories, repair and maintenance services, detailing services and other automobile-related products and services.
For more information, please visit: http://www.zs-group.com.cn
Issued by Porda Havas International Finance Communications Group for and on behalf of Zhongsheng Group Holdings Limited. For further information, please contact:
Porda Havas International Finance Communications Group
Mr. Paul Sham +852 3150-6730 paul.sham@pordahavas.com
Ms. Susan Chen +852 3150-6733 susan.chen@pordahavas.com
Mr. Rachel Liu +852 3150-6767 rachel.liu@pordahavas.com
Ms. Linda Wang +852 3150-6791 linda.wang@pordahavas.com
Fax: +852 3150 6728
Topic: Press release summary
Source: Zhongsheng Group Holdings Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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