The portfolio of automobile brands represented by Zhongsheng Group is a solid city wall.

Recently, Zhongsheng Holdings announced that as of December 31, 2020, its full-year revenue for 2020 will be RMB 148.348 billion, a year-on-year increase of 19.59%. Profit attributable to shareholders was approximately RMB 5.54 billion, a year-on-year increase of 23.06%. Earnings per share were RMB 2.44; the proposed final dividend per share was HK$0.58.

Among them, new car sales revenue increased by 18.2% to RMB 125.526 billion; after-sales service and boutique business revenue increased by 13.5% year-on-year to RMB 20.245 billion; second-hand car sales revenue reached RMB 2.576 billion. Annual value-added service revenue was RMB 3,149.6 million, a year-on-year increase of 9.2%.

As of December 31, 2020, the annual new car sales volume was 500,609, a year-on-year increase of 9.9%. The annual sales of luxury brand new cars were 275,417, a year-on-year increase of 20.8%. The transaction volume of second-hand cars was 107,075, a year-on-year increase of 50.0%.

It is understood that Zhongsheng Group adheres to the brand + region strategy, deeply optimizes the existing brand portfolio, and at the same time continues to expand into new regions on the basis of consolidating and expanding the existing regional advantages. Currently, the total number of Zhongsheng Group dealership stores has increased to 373, including 218 luxury brand dealership stores and 155 mid-to-high-end brand dealership stores, covering 24 provinces, municipalities and autonomous regions across the country, and more than 90 cities.

Affected by the new crown epidemic at the beginning of 2020, the passenger flow and new car sales of Zhongsheng Group's dealerships declined significantly in the first quarter, and the number of accidental vehicles during the after-sales admission was also greatly affected. The second quarter began with the national resumption of production and work. The advancement of China has shown a very strong momentum of recovery and growth.

Entering into the second half of the year, the domestic economy is picking up rapidly, consumer demand in the auto market has grown strongly, and businesses in all sectors have achieved strong rebound growth. Among them, the sales of luxury brands reached 275,417 vehicles, an increase of 20.8% year-on-year, and the sales of luxury brands reached 163,764 vehicles in the second half of the year, an increase of 33.8% year-on-year, accounting for 55.0% of the total sales of the Zhongsheng Group, a substantial increase over the same period in 2019, and the product structure is further optimization.

Through continuous optimization of the management system and diversified innovative services, the after-sales and boutique business of Zhongsheng Group achieved rapid recovery and growth after the domestic epidemic was controlled. Revenue reached RMB 20.245 billion, a year-on-year increase of 13.5%, accounting for Zhongsheng Group. 13.6% of total revenue.

After the epidemic, the Matthew effect of the industry has been strengthened, and the brand advantages of leading companies have become more obvious. In the future, the automotive aftermarket will continue to be the main growth point of the automotive service industry. The industry will further integrate and develop into the leading market and scale.

Value-added service businesses such as auto insurance, auto finance, and second-hand car agency are one of the core growth drivers of Zhongsheng Group in the future. In 2020, against the market, it has achieved good growth. The annual value-added service revenue reached RMB 3.149 billion, an increase of 9.2% year-on-year ( If the gross profit of used car sales under the distribution model is accounted for, it will be 15.9%).

The second-hand car business segment is the focus of the business at this stage. In 2020, the second-hand car transaction volume reached 107,075 units, an increase of 50.0% year-on-year, and the second-half of 2020 reached 66,399 units, an increase of 61.9% year-on-year. After lowering the domestic value-added tax rate for second-hand cars from 2% to 0.5% at the end of March 2020, the Group gradually launched the second-hand car retail business of Zhongshengpin in combination with its distribution model.

The sales of luxury brand second-hand car business under the distribution model recorded car sales revenue on a gross basis. With the increase in the proportion of second-hand car retail business, the future will further drive the rapid growth of second-hand car value-added services and aftermarket business. In 2020, the financial penetration rate of the group's new car sales (that is, financing sales of automobiles through loans and other methods) will further rise to 60.8%. In the future, the domestic personal credit investigation system will gradually improve, and the financial penetration rate is expected to further increase.

In 2018, the Chinese auto market saw its first decline after nearly 30 years of rapid growth. It has entered a period of steady growth from an explosive growth period, and has gradually entered the aftermarket stage. The value of the auto industry chain has gradually shifted back, and the auto aftermarket has shown Great development potential.

With the help of industry transformation and upgrading, as the industry concentration will continue to increase, the survival of the fittest among enterprises will accelerate, and the differentiation will intensify. Some brands gradually withdraw from competition. Luxury brands and leading brands continue to improve. The dealer industry’s scale advantages and strong The advantages of refined management will strengthen the Matthew effect of leading companies. At the same time, there will be new development opportunities in the global automotive market in 2020, including new energy vehicles and intelligent vehicles.

Facing the challenges and opportunities brought by the transformation and upgrading of China's automobile market and the development of new energy vehicles, Zhongsheng Group will uphold the principle of putting people first and customers first, actively participate in the supply-side structural reform of the national automobile industry, and carry out strategic development. Forward-looking layout in the field of new energy.

Zhongsheng Holdings stated that it will be market-oriented, explore the huge development potential of the automotive aftermarket, second-hand car market and new energy fields, and make full use of the group's flat car advantage and scale effect to maintain the long-term development potential and competition of the Zhongsheng Group Advantage.