Financial PerformanceYongda Automobiles's 2H23 net profit fell 59% due to lower-than-expected revenue and after-sales services gross profit margin.
Profitability ConcernsAs the net margin fell to below 1% with deteriorated new-car gross profit margin, cost control becomes critical for Yongda's profitability.
Sales ForecastYongda's new-car sales volume forecast is cut to 181,000 units, a 7% decrease year-over-year, with more stores closed than expected.