China MeiDong Auto Holdings Limited (MEIDONG AUTO) reported interim revenue of RMB7.38 billion for the six months ended 30 June 2026, down 27.2% from the prior-year period. Revenue from new-car sales declined 26.4% to RMB5.84 billion, while after-sales and mortgage‐facilitation income fell 30.2% to RMB1.54 billion. Total vehicle deliveries dropped 19.8% year-on-year to 22,614 units.

Gross profit contracted 17.0% to RMB394.60 million, yet gross margin improved 0.6 percentage point to 5.3%, reflecting tighter inventory and pricing controls that lifted the passenger-vehicle gross margin to –3.5% from –10.8% a year earlier.

The Group recorded a net loss of RMB286.30 million, markedly narrower than the RMB818.15 million loss booked in the first half of 2025, when one-off impairment charges totalled RMB867.87 million. Basic and diluted loss per share were RMB20.46 cents (1H25: RMB60.51 cents). Operating cash inflow rose 43.5% to RMB399.40 million.

Cost discipline continued: • Distribution costs fell 5.0% to RMB246.74 million. • Administrative expenses decreased 12.2% to RMB226.82 million. • Finance costs were cut 64.9% to RMB54.84 million after lower borrowing levels and the absence of prior-year bond redemption losses.

Other net items swung to a RMB126.58 million loss, weighed by a RMB95.43 million unrealised fair-value loss on listed equity investments and a RMB93.23 million disposal loss on property, plant and equipment.

Cash and cash equivalents stood at RMB962.60 million, up 31.4% from 31 December 2025. Total loans and borrowings declined 8.7% to RMB896.49 million, and net assets were RMB1.81 billion. The gearing ratio (loans, borrowings and lease liabilities to equity attributable to shareholders) was 115.7%. Inventories increased to RMB1.20 billion, while trade and other receivables fell to RMB852.44 million as the Group continued to manage working capital.

The dealer network shrank to 72 stores (1H25: 74) after the closure of two Toyota outlets; premium marques remained dominant with 62 Porsche, BMW and Lexus stores. No interim dividend was declared.

Management reiterated a prudent strategy focused on cash preservation, cost optimisation and selective expansion into new-energy brands while monitoring ongoing consolidation in China’s dealership sector.