ZHENGTONGAUTO (01728) announced its annual results for the period ended December 31, 2025. The group recorded revenue of RMB 18.711 billion, a decrease of 9.81% year-on-year. The loss attributable to ordinary shareholders was RMB 2.674 billion, representing an increase of 56.53% compared to the previous year. The loss per share was 37 fen.

Throughout 2025, the group implemented a series of proactive measures, including strengthening procurement management and optimizing marketing strategies, to improve the inventory structure for both new and used vehicles and maintain a healthy inventory status. The inventory depth achieved a month-on-month decline in the second half of the year. Concurrently, the group actively utilized various subsidy policies to develop vehicle replacement services, enhancing customer loyalty and supporting sales growth.

In terms of procurement management, the group executed forward-looking management of monthly procurement plans, scientifically planning the purchase of new and used vehicles to alleviate inventory pressure from the source. A weekly and monthly cross-inventory monitoring mechanism was established to dynamically track inventory levels, prevent inventory risks, and strengthen process control. A mechanism for coordinating and synergizing resources across regions for the same brand was created, leveraging the group's network advantages to foster internal collaboration, conduct appropriate resource transfers permitted by sales policies, expand sales opportunities, and accelerate inventory turnover. A mandatory clearance management mechanism for long-term inventory vehicles was introduced, utilizing internal resource synergy to include such vehicles in the used car disposal process, thereby broadening sales channels and speeding up inventory reduction.

Regarding marketing strategies, the group actively optimized the operational management of vertical and new media platforms. It encouraged dealerships to increase their presence on vertical media platforms where they ranked in the top 30% for leads within their city, while also guiding stores to enhance lead generation and conversion rates through new media channels. This led to a continuous increase in the proportion of orders generated via new media. Furthermore, the group capitalized on policy opportunities and major marketing events by organizing large-scale promotional activities such as the May Day Car Buying Festival and the Double 12 Warm Winter Service Season. These events utilized the Guomao Hui platform to provide online technical support and booking gifts, improving the customer car-buying experience and satisfaction, and achieving a counter-trend growth in sales orders during the campaign periods.