Yongda wrote off ¥5B of luxury 4S stores in a single year

Shanghai's Yongda began in 1992 as a repair shop and listed in Hong Kong on July 12, 2012, growing into one of China's largest luxury-car dealer groups: Porsche, Bentley, BMW and Audi across 221 outlets in over 140 cities, 2024 revenue ¥63.42 billion — No. 4 in the national dealer top-100. The growth was acquisition-fuelled, with premium prices booked as goodwill and dealership rights. FY2024 was still profitable (EPS 0.11); the bet was that luxury combustion-engine cars would keep paying for the network.

On March 13, 2026 came the profit warning; on March 31 the report: FY2025 revenue ¥54.6 billion (-13.9%), an attributable loss of ¥5.072 billion, net margin -9.81%. Inside was a ¥5.007 billion non-cash write-off of goodwill, dealership rights, buildings and deferred tax assets on underperforming 4S stores from past acquisitions — about ¥4.768 billion after the deferred-tax reversal. New-car gross profit fell ¥827 million, down 96.1% in one year, as price competition pushed terminal prices below cost; group gross margin slid to 7.86%.

Even before the impairment the business was in the red: adjusted attributable loss ¥304 million. New cars stayed 76.3% of revenue at ¥41.675 billion; after-sales, ¥9.469 billion (17.3%), is now the margin carrier, with 64,250 used cars sold alongside. The network ended 2025 at 209 outlets: 19 new-energy brand stores opened while 'some brand dealerships' were prudently closed; NEV brands (AITO, XPeng, NIO, Zeekr) make up 22.0% of the network against 61.2% luxury. Inventory fell 13% to ¥3.612 billion on 24.9-day turnover, financing costs down 21.4% to ¥234 million — a controlled shrink.