HK Stock Market Move | ZHONGSHENG HLDG (00881) is currently down more than 4%. Mercedes-Benz recently issued a profit warning, with the company facing pressure on new car sales in the first half of the year.

ZHONGSHENG HLDG (00881) is currently down over 4%, as of the time of writing, down 4.01% to HK$9.1, with a turnover of HK$43.9061 million. On the news front, Mercedes-Benz Group recently stated that due to further deterioration in the macroeconomic environment, they have revised down their 2024 performance guidance. It is currently expected that the sales return on adjusted auto business will be between 7.5% and 8.5%, down from the earlier forecast of 10% to 11%, indicating a sales return rate of around 6% for the second half of this year. It is anticipated that this year's profit before tax will be significantly lower than last year's level, previously expected to be slightly lower than last year's level. It is reported that Zhongsheng's current brand portfolio includes luxury brands such as Mercedes-Benz, Lexus, BMW, Audi, as well as mid-to-high-end brands such as Toyota, and they are leading in all core market segments. The company's new car sales revenue in the first half of the year was 60.812 billion yuan, a decrease of 5.8% year-on-year, mainly due to a decrease in the average selling price of new cars during the period. In terms of new car sales revenue, Mercedes-Benz was the highest-selling car brand for the company, accounting for approximately 40.5% of the group's total new car sales revenue.