ZHENGTONGAUTO (01728) announces annual performance, with a net loss of 2.674 billion yuan attributable to shareholders, an increase of 56.53% year-on-year.

ZHENGTONGAUTO (01728) announced its annual performance ending on December 31, 2025. The group achieved a revenue of 18.711 billion yuan, a decrease of 9.81% year-on-year. The net loss attributable to ordinary shareholders was 2.674 billion yuan, an increase of 56.53% year-on-year. The loss per share was 0.37 yuan. In 2025, the group implemented a series of proactive measures to strengthen procurement management and optimize marketing strategies. They improved the structure of new and used car inventory to maintain a healthy inventory status, with a gradual decrease in inventory depth in the second half of the year. The group also actively utilized various subsidies to conduct vehicle replacement business, enhance customer loyalty, and boost sales. In terms of procurement management, the group implemented monthly procurement plan management, scientifically planned purchases of new and used cars to reduce inventory pressure at the source. They established a cross-monthly and monthly inventory monitoring mechanism to dynamically monitor inventory levels, prevent inventory risks, and enhance process management. They also established a cross-regional resource coordination and collaborative allocation mechanism for the same brand to leverage the group's network advantage, utilize internal synergy, conduct appropriate resource allocation allowed by sales policies, expand sales opportunities, and accelerate inventory turnover. They introduced a mandatory clearance management mechanism for aged inventory to dispose of aged vehicles, utilize internal resources synergistically, include them in the range of used car disposal, expand sales opportunities, and accelerate inventory turnover. In terms of marketing strategy, the group actively optimized the operation management of traditional media and new media to increase the number of traditional media platforms in the top 30% of city dealerships' ranking. They also guided each store to enhance the importation and conversion of leads from new media channels to achieve a continuous growth in the comprehensive proportion of new media orders. They also took advantage of policy opportunities and organized several group-level sales and marketing activities during major marketing events such as the May Day Car Buying Festival and Double 12 Warm Winter Service Season, with support from the Guomao Hui online platform to improve customer buying experience and satisfaction, while achieving an increase in sales orders against market trends during the activities.