Zhongsheng reports 8.00 percent margin in first-half results for Zhongsheng stock

Published on 10/20/2026 at 20:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Gross margin rose to 8.00 percent from 5.40 percent in first-half 2026. Zhongsheng stock costs EUR 0.27 on October 20, 2026 after the HKEX close.

Margin and market position

Zhongsheng reported an 8.00 percent gross margin for the first half of 2026 after 5.40 percent a year earlier.
The company had reshaped 66 dealerships during the first half of 2026 and targeted 300 new-energy dealerships by year-end.
Zhongsheng stock costs EUR 0.27 at Lang & Schwarz on October 20, 2026 at 8:44 p.m. CEST.
The HKEX close was HKD 2.40 on October 20, 2026, down 1.44 percent from HKD 2.43.

Zhongsheng, KYG9894K1085, Illustration mit AI erstellt.

Zhongsheng reported an 8.00 percent gross margin for the six months ended June 30, 2026, up from 5.40 percent a year earlier, according to Futubull. The improvement came as new-car losses narrowed and after-sales services contributed more gross profit. Zhongsheng stock was priced at EUR 0.27 at Lang & Schwarz on October 20, 2026 at 8:44 p.m. CEST.

Margin improved as dealerships changed

The interim report dated September 29, 2026 said Zhongsheng had closed, suspended or converted 66 inefficient traditional-brand dealerships during the first half. The group also said it was expanding its new-energy vehicle network and targeted 300 new-energy dealerships by the end of 2026, with those brands accounting for 35.00 percent of monthly sales in December, according to Futubull.

HKEX position remains deeply below the high

On the HKEX, Zhongsheng closed at HKD 2.40 on October 20, 2026, down 1.44 percent from HKD 2.43. Its 52-week range was HKD 2.24 to HKD 13.41, placing the close 82.10 percent below the high and 7.14 percent above the low. The stock traded 6,734,600 shares, while its market capitalization stood at HKD 5.7 billion.

Valuation and operating pressure

Zhongsheng carried a negative trailing price-to-earnings ratio of 1.88 on October 20, 2026. The first-half report also showed after-sales revenue of RMB 11.54 billion, up 0.80 percent year over year, while new-car sales volume declined 17.60 percent to 188,000 units, according to Futubull. The contrasting figures leave after-sales execution and the new-energy rollout as the clearest operating measures for the second half.

Comparison with peers

Zhongsheng Group Holdings: down 1.44 percent, P/E minus 1.88, market capitalization HKD 5.7 billion.

Tan Chong International (HKEX, HKD): down 2.67 percent, P/E 13.75, market capitalization HKD 2.9 billion.

China Yongda Automobiles Services (HKEX, HKD): down 0.68 percent, P/E minus 0.67, market capitalization HKD 1.4 billion.

What the margin means for the stock

The 2.60 percentage-point gross-margin improvement offers a measurable counterweight to the dealership restructuring and weaker new-car volumes. For investors, the next assessment point is whether the 300-store target can expand the higher-margin after-sales contribution without adding further pressure to vehicle sales.

On the HKEX, Zhongsheng closed at HKD 2.40 on October 20, 2026, down 1.44 percent from HKD 2.43, while the euro price stood at EUR 0.27 at Lang & Schwarz at 8:44 p.m. CEST. The further course of trading is shown by the continuously updated real-time quote of Zhongsheng stock.