Implementing a dual-track strategy of "domestic brands breaking upward, international brands taking root downward" and deepening full-chain efficiency revolution, China's leading auto aftermarket brand TUHU-W (09690) delivered a steady, high-quality growth performance in its 2025 interim results on August 21st.

**Steady Revenue Growth with Enhanced Profitability**

In the first half of 2025, TUHU-W achieved acceleration in both year-over-year and sequential revenue growth. The company recorded total revenue of 7.9 billion RMB during the reporting period, representing a 10.5% increase from 7.1 billion RMB in the same period of 2024. By revenue calculation, the company maintained its leading position in China's independent automotive services market.

In the first half, TUHU-W achieved gross profit of nearly 2 billion RMB, up 7.4% year-over-year; adjusted EBITDA reached 483 million RMB, up 7.5% year-over-year; adjusted net profit was 410 million RMB, up 14.6% year-over-year. The net profit growth rate exceeded revenue growth, indicating continuously strengthening profitability and improving profit quality.

Free cash flow reached 347 million RMB, up 32.2% year-over-year; as of the end of the reporting period, the company held approximately 7.5 billion RMB in total cash. This healthy cash flow position provides solid support for the company's continued expansion and innovation investments.

Boosted by positive results, TUHU-W's stock price rose to as high as 21.24 HKD on August 22nd, with a maximum gain of 11.44%. Data shows that since May, southbound capital's holdings in TUHU-W have shown an upward trend. As of August 19th, southbound capital held 98.92 million shares of TUHU-W, representing a 12% stake.

**Rapid User Scale Growth with Significant Store Penetration Results**

The core reason for TUHU-W's steady performance growth in the first half lies in the positive cycle formed by continued user base expansion and deep penetration of its store network, supported by enhanced user stickiness and improved operational efficiency.

As of the first half of 2025, TUHU-W had 26.5 million cumulative 12-month transacting users across all channels led by its APP, up significantly by 23.8% year-over-year; the APP's average monthly active users reached 13.5 million in the first half, up 17.5% year-over-year, while maintaining user satisfaction above 95% and a repurchase rate of 64%.

TUHU-W's user base growth and enhanced stickiness result from continued investment in brand building and service experience. In June 2025, the company invited Han Han as its first "Professional Brand Ambassador," sharing car maintenance knowledge through short videos and interacting with users through APP columns, strengthening the brand image of "Professional TUHU, Reliable Car Care."

The company also partnered with authoritative institutions like China Automotive Technology and Research Center to conduct product evaluations, established China's first professional film product laboratory "Gold Medal Car Film Testing Center," and completed six major scenario tests including tire wet braking at the Yancheng testing facility, providing users with scientific data for purchase decisions and further consolidating user trust.

Additionally, an intelligent customer service system based on the upgraded DeepSeek large model achieved personalized pre-sale recommendations and precise after-sale responses, improving pre-sale conversion rates by 2 percentage points, intelligent customer service satisfaction by 7 percentage points, and reducing customer service labor costs by 18% year-over-year, significantly improving service quality while lowering operational costs.

User base growth became the core driver for the company's store expansion. To better serve the growing user base, TUHU-W continued advancing its store network construction. By the first half, TUHU-W operated 7,205 service centers, up 14.2% year-over-year, covering 320 prefecture-level administrative regions and 1,855 county-level administrative regions nationwide. Coverage of counties with passenger car ownership above 20,000 vehicles increased to 70%, up 5 percentage points year-over-year.

In lower-tier markets, the company performed particularly well, with over 60% of new stores in the first half located in second-tier cities and below. Regions including Guangxi, Heilongjiang, Tibet, and Xinjiang all saw store count increases exceeding 20% year-over-year, fully tapping the market potential of lower-tier cities.

While expanding store scale, the company implemented multiple measures to improve operational efficiency and cost control. For franchise support, it launched the "TUHU New Generation" program, providing new franchisees with franchise fee reductions, product subsidies, and over one million RMB in total support. The company also helped service centers reduce operational costs through its "1 Billion Subsidy, 10,000 Stores Together" program, attracting more quality franchisees.

In the first half, same-store fulfillment users at TUHU-W service centers increased by over 7% year-over-year, with approximately 90% of franchise service centers operating for more than 6 months remaining profitable.

On the store management side, TUHU-W utilized AI video recognition technology to strengthen hygiene and compliance management, improving user satisfaction with store environments; launched "Smart Quotation" functionality with visual presentation of vehicle anomalies, driving conversion of complex repair projects; through the "New Store Improvement Program," provided traffic support and technical supervision for new stores, improving profitability rates and same-store fulfillment users for new franchise locations.

These measures enabled the company to ensure operational efficiency improvements and effective cost control while expanding store scale, providing strong support for performance growth.

**Dual-Track Strategy and Emerging Business Synergy Building New Growth Momentum**

Looking ahead, TUHU-W maintains its dual-track strategy of "domestic brands breaking upward, international brands taking root downward" in core business areas, driving comprehensive product matrix upgrades while actively developing emerging businesses to create diversified growth engines.

In tire business, TUHU-W deepened cooperation with international brands like Michelin and Continental, jointly launching exclusive product lines such as Extreme Contact XC7 to meet high-end car owner demands; simultaneously tapping domestic brand potential, with self-owned and controlled products covering popular models with medium to long vehicle ages, achieving tire sales growth rates in third- to fifth-tier cities at twice that of higher-tier cities.

For maintenance business, the company partnered with Shell to launch exclusive new product series and introduced Pennzoil Saudi Aramco high-end motor oil. The company also upgraded entry-level self-owned brand products, with low-price segment motor oil sales and user volumes both increasing by over 60% year-over-year, meeting car owners' "value-for-money" consumption demands.

Among emerging businesses, quick repair and new energy vehicle services showed outstanding performance. TUHU-W's quick repair business benefited from increasing average age of domestic passenger cars and large numbers of vehicles leaving warranty coverage, with revenue growing substantially by over 60% year-over-year in the first half. The company continued expanding core quick repair categories, adding high-end brands like Continental and NGK, with online order fulfillment rates improving to 90.6% and core categories like control arms and shock absorbers achieving revenue growth exceeding 50%.

With continuously increasing new energy vehicle penetration rates, TUHU-W's new energy vehicle business showed strong growth momentum, with transacting users reaching 3.4 million in the first half, up 83.5% year-over-year, accounting for over 12% of total platform transacting users. On the product side, the company launched tire specifications more suitable for new energy vehicles, combined with "lifetime warranty" services, with new energy vehicle-specific tires accounting for over 15% of self-owned and controlled product sales in the first half.

The company also partnered with multiple leading enterprises to launch range-extended hybrid-specific motor oils, with new energy vehicle hybrid motor oil paying users growing by over 120% year-over-year in the first half.

The company's deep beauty business combined with new energy vehicle owner needs to customize products meeting high signal requirements. On the service side, it launched new energy vehicle power battery testing and out-of-warranty three-electric maintenance services, leveraging its extensive service network and in-warranty "three-electric" maintenance experience to deeply penetrate the high-value, longer vehicle age user market.

In summary, TUHU-W achieved significant results across multiple dimensions including revenue, profit, user scale, store network, and business innovation in the first half of 2025. Looking forward, with continued growth in vehicle ownership, further aging of vehicle age structure, and rapid development of the new energy vehicle market, the automotive aftermarket still has broad development space. Through deep integration of users and stores, continued deepening of dual-track strategy, and accelerated growth of emerging businesses, TUHU-W will continue consolidating its industry-leading position and create long-term value for all industry chain participants and investors.