Zhengtong Auto (01728) issues profit warning, expecting a year-on-year increase of about 40% in mid-term net loss.

Zhixin Financial APP News, Zhengtong Automobile (01728) announced that due to the escalating price war in the automobile market and the impact of macroeconomic factors, the group has made impairment provisions for certain underperforming 4S dealership intangible assets and/or goodwill, automobile distribution rights/dealer operating rights, and fixed assets such as 4S dealership properties and decorations planned for transformation. As a result, the group expects that the net loss for the six months ended June 30, 2025 will increase by approximately 40% compared to the same period last year. The increase in net loss is mainly due to the decrease in new car selling prices, impairment of goodwill and intangible assets, and impairment of fixed assets.