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China Meidong Auto Holdings Limited

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EQS-News News vom 19.08.2020

China MeiDong Auto announces 2020 Interim Results Profit for the Period Surged by 28.5% to RMB307.2 million

EQS-News / 19/08/2020 / 19:06 UTC+8

[For Immediate Release]                                                  19 August 2020


China MeiDong Auto Holdings Limited

 (Incorporated in the Cayman Islands with limited liabilities)

(Stock code: 1268.HK)


2020 Interim Results Achieved Steady Growth

*   *   *

Revenue Increased by 23.5% to RMB8,447.9 million

Profit for the Period Surged by 28.5% to RMB307.2 million

Interim Dividend of RMB0.1451 per share as Dividend Payout Hit Record High of 60%


Financial Highlights


For the six months ended 30 June

RMB million








Gross profit




Profit for the Period




Profit attributable to

equity shareholders of the Company




Interim dividend per share (RMB)




Dividend payout ratio



+30.1 p.p.


[19 August 2020 - Hong Kong] The fast-growing auto distributor with strong focus on high-potential 2nd to 4th tier cities, China MeiDong Auto Holdings Limited ("MeiDong Auto", together with its subsidiaries, the "Group", stock code: 1268.HK), was pleased to announce its interim results for the six months ended 30 June 2020 (the "Period").


Results Highlight

Affected by the outbreak of COVID-19 and changing macroeconomic environment, the automobile industry exhibited general weakness in the first half of 2020, with passenger vehicles sales recording a decrease of 22.4% year-on-year ("yoy"). Yet, the luxury car market remained relatively resilient. During the Period, the overall market share of luxury cars has increased by 3.1 percentage points to 13.7%, showing a growing prevalence among consumers. As the COVID-19 situation gradually improves, the automobile market in China also started to see solid recovery since March 2020, and has resumed growth in May 2020, in which the luxury segment has been leading the recovery, achieving a 27% yoy growth in June 2020. Its market share also reached a record high of 14.8%.


Despite the extremely challenging market environment, the Group was able to maintain growth and efficiency. During the Period, the Group recorded a revenue of approximately RMB8,447.9 million (first half of 2019: approximately RMB6,843.0 million), representing an increase of approximately 23.5% yoy. Driven by steady growth in total revenue, gross profit increased by approximately 18.3% yoy, from approximately RMB692.5 million to approximately RMB819.1 million. Leveraging its management expertise, the Group was able to enhance its operational efficiency              and inventory management under the testing environment. Coupled with effective cost control initiatives, profit for the Period increased by 28.5% yoy to RMB307.2 million (first half of 2019: RMB239.0 million). Profit attributable to equity shareholders of the Company increased by 27.6% to RMB300.8 million (first half of 2019: RMB235.8 million), with basic earnings per share hit RMB25.72 cents (first half of 2019: RMB20.43 cents). In view of the satisfactory results, the Board of Directors recommends an interim dividend of RMB0.1451 per share (first half of 2019: RMB0.0610), as dividend payout ratio reached 60.0%, representing an increase of 30.1 percentage points (first half of 2019: 29.9%).


New Passenger Vehicle Sales - Accounted for 88.6% of the Total Revenue

During the Period, through same store sales growth and new-store expansion, the Group recorded a strong growth in new passenger vehicles sales amidst the challenging environment. In the first quarter where there was a significant reduction in customer foot traffic, the Group was still able to achieve sales growth through a higher customer conversion rate, further lowering inventory turnover to 12 days. As a result, revenue of new passenger vehicles sales increased by approximately 24.5% yoy to approximately RMB7,487.9 million (first half of 2019: approximately RMB6,015.2 million). Luxury brands remained as the major revenue source of the Group, accounting for 84.3% of total new passenger vehicles sales. Specifically, BMW, Porsche, Lexus and Audi recorded sales of new passenger vehicles of approximately RMB2,978.4 million, RMB1,544.5 million, RMB1,726.1 million and RMB57.1 million respectively, accounting for approximately 39.8%, 20.6%, 23.1% and 0.8% of new passenger vehicles sales respectively. In terms of sales volume, the Group sold 23,691 new passenger vehicles in total during the Period, representing an increase of 7.9% yoy in sales volume.


After Sales Services - Accounted for 11.4% of the Total Revenue

During the Period, the Group has taken active measures to promote its after-sales services. Revenue of after-sales services reached approximately RMB960.0 million, representing an increase of approximately 16.0% yoy (first half of 2019: approximately RMB827.8 million). The total number of vehicles served was 227,744, representing an increase of approximately 8.7% yoy. Its gross profit margin remained stable at approximately 47.0%.


Current Network

The Group continued to execute its highly effective "Single City Single Store" strategy for its luxury brands to further expand its distribution network. In the first half of 2020, the Group opened 2 new stores. As 30 June 2020, the Group had 60 self-operated stores in provinces and cities such as Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu, Anhui and Shandong, including a joint venture operated by the Group.

- End -


About China MeiDong Auto Holdings Limited

China MeiDong Auto Holdings Limited is a fast-expanding auto distributor focusing on 2nd to 4th tier cities and the provision of after-sales services. The Group mainly focuses on mid brands and mainstream luxury brands, including Porsche, BMW, Lexus, Audi, BMW Mini, Toyota and Hyundai. As of 30 June 2020, the Group operates 60 stores in Beijing, Guangdong, Hunan, Hubei, Fujian, Jiangxi, Anhui, Hebei, Gansu and Shandong provinces in China.


This press release is issued by DLK Advisory Limited for and on behalf of China MeiDong Auto Holdings limited.


For further information, please contact:



DLK Advisory 金通策略

Michelle Shi ([email protected])

Jonathan Lam ([email protected])

Kathleen Mui ([email protected])

Adrian Chung ([email protected])

Emily Wei ([email protected])

Tel: +852 2857 7101

Fax: +852 2857 7103


File: 1268_IR2020_press release_ EN_20200819_Final

19/08/2020 Dissemination of a Financial Press Release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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