XXF Group Holdings Limited (XXF) reported interim revenue of RMB 761.26 million for the six months ended 30 June 2026, a year-on-year decline of 1.0%. Gross profit fell 3.8% to RMB 222.11 million, while profit attributable to shareholders dropped 22.0% to RMB 17.54 million. Adjusted net profit (non-IFRS) decreased 25.2% to RMB 18.19 million, mainly due to softer domestic auto demand and price volatility in China’s passenger-vehicle market.

Segment performance • Automobile Retail & Finance: Revenue slid 13.1% to RMB 527.13 million. New-car sales volumes contracted 18.3% to 4,114 units, outperforming the national market’s 24.3% decline. New-energy vehicles accounted for 32.7% of sales, up from 13.4% a year earlier. Segment gross margin was 35.1% versus 34.4% in 1H25. • Automobile-Related Businesses: Revenue jumped 32.8% to RMB 137.61 million, driven by a 35.2% rise in operating-lease income to RMB 130.63 million. Segment gross margin widened to 25.0% from 19.7%. • Outright Car Sales: Revenue surged 63.7% to RMB 96.53 million as the Group expanded export activities; gross margin remained low at 2.7%.

Cost and expenses Total cost of revenue was broadly flat at RMB 539.16 million. Selling and marketing expenses rose 4.1% to RMB 60.23 million, while administrative expenses fell 5.6% to RMB 57.15 million. Net finance cost decreased 6.6% to RMB 81.07 million, reflecting a 1.1-percentage-point reduction in the average cost of interest-bearing liabilities.

Cash flow and balance sheet Net cash generated from operations swung to an inflow of RMB 170.30 million (1H25: RMB -30.85 million). Capital expenditure nearly doubled to RMB 382.51 million, largely due to the consolidation of Fujian Xidun. Cash and cash equivalents rose to RMB 436.20 million from RMB 371.84 million at end-2025. Total borrowings contracted to RMB 2.59 billion, lowering the gearing ratio to 65.7% from 73.4%. Net current assets improved to RMB 531.58 million (31 Dec 2025: RMB 366.60 million).

Corporate actions During the period XXF completed two top-up placements, issuing 309.38 million new shares and raising net proceeds of HK$276.73 million (approximately RMB 242.06 million). The funds are earmarked for vehicle procurement and general working capital. The Group also raised its stake in Fujian Xidun to 100% for RMB 51.00 million and acquired the remaining 49% of Fujian ZyooCar Technology for RMB 6.40 million. Post-period, XXF agreed to acquire PAGAC NTS Limited for HK$150.00 million, which will lift its effective interest in Xinqite Automobile Service Company to 94.94% upon completion.

Capital management Total assets stood at RMB 3.90 billion, with equity attributable to owners at RMB 1.13 billion. Finance lease receivables declined 3.4% to RMB 1.84 billion, while inventory was reduced by 39.4% to RMB 154.62 million as inventory days improved to 17 days. No interim dividend was declared.

Outlook Management plans to intensify lower-tier city expansion, increase the share of new-energy vehicles, grow its auto-export platform and enhance digital operations, while maintaining cost control and prudent capital allocation.