MeiDong Auto (01268) reported a RMB754.00 million net loss for the year ended 31 December 2025, narrowing from the RMB2.26 billion loss booked in 2024. The result was primarily driven by RMB867.87 million of non-cash impairments on goodwill and car-dealership intangible assets.
Revenue fell 9.6 % to RMB20.02 billion. New-car sales contributed RMB16.10 billion (-9.2 % year on year) on 57,554 units sold (+1.1 %), while after-sales and mortgage-facilitation income slid 11.3 % to RMB3.93 billion amid lower commission rates. Gross profit contracted 26.4 % to RMB1.15 billion and gross margin dropped to 5.7 % from 7.0 %.
Cost controls partially cushioned the margin pressure: combined distribution, administrative and finance expenses declined to 6.2 % of revenue from 6.7 % a year earlier. Net cash from operating activities totalled RMB482.28 million (2024: RMB864.66 million).
The group fully redeemed its outstanding HK$1.87 billion convertible bonds in January 2025, cutting total debt and lease liabilities to RMB1.72 billion and lowering the gearing ratio to 108.5 % (2024: 144.0 %). Cash, fixed deposits and pledged deposits stood at RMB1.87 billion, down from RMB4.76 billion in 2024, reflecting bond redemption and bill repayments. Inventories rose to RMB914.60 million (2024: RMB760.71 million).
A final dividend of RMB0.0337 per share has been proposed, subject to shareholder approval at the 13 May 2026 AGM. The dividend will be paid on 28 October 2026 to shareholders on the register as of 10 September 2026.
Management cited intensified industry price competition, lower mortgage-facilitation commissions and the expanded luxury-vehicle consumption tax as key headwinds. The company plans to prioritise single-store efficiency, maintain low inventory levels and explore light-asset opportunities in the new-energy vehicle segment while leveraging regional network advantages following dealer consolidation. As at year-end, MeiDong Auto operated 74 self-run outlets, down from 78 a year earlier, including 15 Porsche, 27 BMW and 20 Lexus stores.