ZHONGSHENG HLDG (00881) surged over 5%, trading up 4.57% at HK$16.7 with a turnover of HK$31.4483 million as of press time.

On the news front, ZHONGSHENG HLDG recently released its results for the six months ended June 30, 2025. The group recorded total revenue of RMB 77.322 billion during the period, down 6.2% year-on-year; profit attributable to equity holders of the parent company was RMB 1.011 billion, down 36% year-on-year; basic earnings per share were RMB 0.427. In the first half of 2025, the group's after-sales service revenue reached RMB 11.45 billion, up 4.4% year-on-year. During the same period, after-sales service gross profit reached RMB 5.44 billion, up 8.1% year-on-year. This strong financial performance was driven by 4.54 million active customers generating 4 million after-sales service visits, representing year-on-year growth of 15.2% and 1.7% respectively.

A research report noted that in H1 2025, the company sold 228,600 new vehicles, down 1.7% year-on-year. Affected by intensified competition in the new car market, dealers' new car sales gross margin continued to face pressure. In H1 2025, new car sales gross profit was negative RMB 2.388 billion, with a gross margin of -4.1%, representing an average loss of approximately RMB 10,443 per vehicle. Among these, AITO brand sold 11,000 new vehicles in H1 2025 and improved the group's new car gross margin by 0.6 percentage points, further optimizing the new car sales structure. Additionally, brands led by Toyota have launched more competitive new products, with Toyota sales growing 7.7% year-on-year in H1 2025. With further integration of the dealer network, this is expected to promote recovery in new car sales gross margin.