XXF (02473) issues a profit warning, expecting a mid-term profit attributable to shareholders of approximately 16.5 million to 18 million yuan.

XXF (02473) announced that the expected profit attributable to owners of the company for the six months ending June 30, 2025 (2025 interim) is approximately RMB 22.5 million. In comparison, the group expects to record profit attributable to owners of the company between approximately RMB 16.5 million and RMB 18 million for the interim period of 2026. The main reason for the expected decline is that, due to industry factors, the revenue from the group's higher gross profit automotive retail and financing business is expected to decrease year-on-year by mid-2026, leading to a decline in both gross profit and profit for the period compared to the previous year. By mid-2026, domestic passenger car prices are highly volatile, terminal demand for passenger cars is weakening, and there are significant changes in demand structure. According to data from the China Automotive Industry Association (CAAM), from January to June 2026, domestic sales of passenger cars in China amounted to 8.288 million units, a year-on-year decrease of 24.3%. In response to the overall challenges in the industry by mid-2026, the company has adopted proactive marketing strategies. Faced with structural changes in the demand for end-user vehicle models, the company has promptly adjusted the purchase and sales ratio of new energy vehicles and strengthened inventory management, which resulted in the company's automotive retail and financing business achieving revenue that, while year-on-year declined, still outperformed industry levels. Compared to the automotive retail and financing business revenue of approximately RMB 606.6 million for the interim period of 2025, the company expects revenue of approximately RMB 527 million for the automotive retail and financing business in the interim period of 2026, a year-on-year decrease of about RMB 79.5 million, or a decline of 13.1%. By mid-2026, China's passenger car export growth rate is relatively high, and the company has also strengthened its automotive direct retail business focused on passenger car exports. Compared to the revenue of approximately RMB 59 million from the automotive direct retail business in the interim period of 2025, the company expects to achieve revenue of approximately RMB 96.5 million from the automotive direct retail business in the interim period of 2026, an increase of approximately RMB 37.5 million, or a year-on-year growth of 63.7%. In summary, the group will continue to focus on its core main business, continuously improve operational efficiency and profitability quality, and ensure the company's financial status remains healthy and robust.