Zhongsheng reports an 89.10 percent profit drop: what it means for Zhongsheng stock

Published on 10/07/2026 at 04:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Zhongsheng stock had a prior close of EUR 0.29 on October 5, 2026 after EUR 0.29. Revenue fell to RMB 63.02 billion.

Zhongsheng, KYG9894K1085, Illustration mit AI erstellt.

Zhongsheng Group Holdings Limited (ISIN KYG9894K1085) reported that profit attributable to owners fell 89.10 percent year over year to RMB 110.00 million in the six months ended June 30, 2026. The result was part of the interim report published on September 29, 2026, which also showed a sharp revenue decline and a shift toward higher-margin after-sales services, according to Futu.

Profit falls while margin improves

Revenue reached RMB 63.02 billion in the first half of 2026, down 18.50 percent from the same period a year earlier, according to Futu. New-car sales revenue fell 20.30 percent year over year to RMB 46.19 billion, while new-car volume declined 17.60 percent to 188,000 units.

The operating mix offered a counterpoint. After-sales service revenue rose 0.80 percent to RMB 11.54 billion, and gross profit in that segment increased 2.70 percent, according to Futu.

Margin recovery meets weak demand

Zhongsheng's overall gross margin improved from 5.40 percent in the first half of 2025 to 8.00 percent in the first half of 2026. That improvement did not offset the weaker sales base: basic earnings per share fell to RMB 0.047 from RMB 0.427 in the comparable period, while the board did not recommend an interim dividend, according to Futu.

Management is responding by reshaping the dealership network and expanding new-energy vehicle coverage. The company closed, suspended or converted 66 inefficient traditional-brand dealerships in the first half of 2026 and aims to operate 300 new-energy vehicle dealerships by year-end, with those brands targeted to represent 35.00 percent of monthly sales in December, according to Futu. The plan places greater weight on service revenue and network efficiency while vehicle-price competition remains a direct pressure on profitability.

Stock reference stays at EUR 0.29

The prior close at Lang & Schwarz was EUR 0.29 on October 5, 2026. The quote page carried no valid October 7, 2026 intraday price, so the prior close is the dated market reference for the German investor perspective.

The further course of trading is shown by the continuously updated real-time quote of Zhongsheng stock.