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Under the epidemic, consumption is generally weak, and traditional car sales are declining, endangering the survival of car dealers.

Recently, domestic automobile distribution groups have released semi-annual results for 2022. In the semi-annual reports of 14 A / H-share listed companies counted by Automotive Industry concern, only Zhengtong Motor has achieved double growth in revenue and profit, while seven companies, including Zhonsheng Holdings and Guanghui Automobile, have both dropped revenue and net profit, while Harmony Automobile's net profit has plummeted by 334.07% compared with the same period last year.

Many car dealers have made efforts to support the growth of revenue and profits of luxury car brands, while the performance of the luxury car market in the first half of the year has a direct impact on the development of dealer groups. According to data from the Federation of passengers, retail sales of 1.265 million luxury cars in the domestic market in the first half of the year were 14.0% lower than the same period last year, and the decline was higher than that of the domestic car market as a whole. Take BBA as an example, BMW's cumulative sales in China fell 23.3% year-on-year to 378700 vehicles in the first half of the year, Mercedes-Benz sales fell 24.1% to 355800 vehicles, and Audi fell 31.9% to 317000 vehicles.

Take Zhongsheng Holdings as an example. As the largest luxury car dealer in China, Zhongsheng holding's revenue profit fell both in the first half of the year, with operating income falling 1.52% year on year to 86.029 billion yuan, and net profit down 7.31% to 3.425 billion yuan. This is the first half-yearly decline in revenue since its listing. In terms of sales, Zhongsheng Holdings sold 242300 new cars in the first half of the year, down 12.1% from the same period last year, of which 143900 were luxury brands, down 11.1% from the same period last year, accounting for 59.4% of the group's total sales.

As the largest car dealer in China, Guanghui Motor was also having a hard time in the first half of the year. Data show that Guanghui auto revenue fell 21.75% year-on-year to 65.764 billion yuan in the first half of the year, while net profit fell 48.81% to 771 million yuan. Guanghui Automobile said that the repeated domestic epidemic in the first half of the year, especially in Shanghai and other cities, was seriously affected, and the supply and logistics of the automobile industry chain were seriously affected. Data show that in the first half of the year, Guanghui has 783 automobile outlets and 253 ultra-luxury and luxury brand outlets. Although there are many 4S stores, the proportion of luxury brands is much lower than that of Zhongsheng Holdings, and its profitability is obviously lower than that of Zhongsheng Group. It is understood that Guanghui Automobile once ranked first among the top 100 dealers from 2016 to 2021, but Guanghui Motor has been overtaken by Zhongsheng Holdings in the "Top 2022 Automobile Dealers list".

Similarly, Zhengtong Motor and Meidong Motor are also luxury car dealers, but there are great differences in operation and management. According to the financial report, Meidong Motor's first-half operating income rose 7.20% year-on-year to 12.658 billion yuan, but net profit fell 36.03% to 343 million yuan. Meidong said luxury cars remained the group's core source of sales, accounting for 87.2% of new car sales, with a total of 20500 Porsche, BMW, Lexus and Audi sales during the period.

Zhengtong Automobile is the only dealer with a double increase in revenue and net profit, with revenue up 15.15% to 11.069 billion yuan and net profit up 100.56% to 8 million yuan in the first half of the year. It has been revealed that Zhengtong Motor sold a total of 26100 new cars in the first half of 2022, including 21500 luxury cars.

In the past two years, the development of Zhengtong Motor is disadvantageous. On August 31, 2021, Zhengtong Motor changed its controlling stake, Wang Muqing and others resigned, and Wang Mingcheng was appointed chairman of the board of directors. It was revealed that Wang Mingcheng was the general manager of Xiamen Cinda at that time. On January 11, 2022, Wang Muqing resigned as executive director, and the senior management of the automobile was completely changed. Xiamen International Trade Holdings has become the single largest shareholder of Zhengtong Motor, China Zhengtong's official website announced. According to the financial report, net profit in the first half of 2020 and the first half of 2021 lost 1.366 billion yuan and 1.455 billion yuan respectively from the same period last year, down 389.61 percent and 6.59 percent from the same period last year. Although the net profit in the first half turned to 8 million yuan, it was still at the bottom of the 10 companies with net profits.

Harmonious Automobile is also a high-end luxury car dealer, which owns luxury brands such as BMW, Lexus, MINI, Land Rover, Infiniti, Ferrari and Masamatti, but its first-half net profit fell 334.07% year-on-year, with a net loss of 914 million yuan, the worst on the dealer list. As for the operating loss, Harmony Automobile said that it was mainly due to the full provision for equity investment in FMC, with a profit of 302 million yuan after deducting the full provision of 1.217 billion yuan for Baiteng Automobile.

As the former "king of 4S stores", the giant group rebounded by frequently selling subsidiaries, with operating income falling 13.85% year-on-year to 12.633 billion yuan and net profit down 95.87% year-on-year to 24 million yuan, deducting a net loss of 190 million yuan in non-recurring profit and loss. A few days ago, the huge group announced that Subaru Co., Ltd. will take full control of Subaru China, while most of the performance of the huge group is supported by the Subaru brand, this adjustment may have a significant impact on the performance of the large group. In addition, 253 million shares held by Pang Qinghua, the former controlling shareholder, will be auctioned in late September.

Multiple difficulties, such as repeated epidemic situation, declining passenger flow, increased cost of collecting passengers and great financial pressure, have narrowed the profit area of dealers. According to data from the China Automobile Association, a total of 12.057 million vehicles were sold in the first half of the year, of which production by auto parts manufacturers stagnated from March to May due to the impact of the epidemic, resulting in a number of car companies being forced to stop production or cut production until June.

According to the China Automobile Circulation Association, more than 1400 4S stores have been closed in the first four months of 2022, with an average of about 11 4S stores closed every day. But the difficulty is not only that, with a large amount of capital entering the automobile aftermarket in recent years, the maintenance shop develops rapidly and continues to seize the after-sales business of 4S store, 4S store is facing the situation of front and back attack. According to the national survey on the living conditions of car dealers in the first half of 2022 released by the China Automobile Circulation Association, only 18.1% of the dealers achieved their half-year sales targets.

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