# Zhongsheng Group Holdings (0881.HK)

Canonical: https://gigainvestors.com/s/0881.HK

Analysis as of: 2026-10-16T07:45:29.371Z. Financial observations: FY2006–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 2.32 per share; close as of 2026-10-15.

Estimated value: low HKD 35.31 per share, central HKD 39.00 per share, high HKD 43.91 per share. Buy at or below the central value HKD 39.00 per share. Valuation as of 2026-10-16T07:45:29.371Z; scenarios are not confidence intervals.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.44×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.07×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.07×

- FY2022: 0.06×

- FY2023: 0.05×

- FY2024: 0.03×

- FY2025: -0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.7%

- ROIC, second-lowest year: 7.0%

- Typical minus recent gross margin: 3.7 pp

- Typical gross margin (annual median): 9.1%

- Recent gross margin (lower of latest and 3-year median): 5.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 8.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.0%

- FY2017: 15.3%

- FY2018: 13.6%

- FY2019: 14.3%

- FY2020: 15.9%

- FY2021: 18.7%

- FY2022: 13.9%

- FY2023: 10.4%

- FY2024: 7.0%

- FY2025: -1.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 95.84×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 2.07T

- Net income, five-year total: CNY 22B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.9 pp

- Working capital / revenue, final three-year average: 10.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.89×

- FY2022: 0.81×

- FY2023: 0.66×

- FY2024: 639.58×

- FY2025: 1.73×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.6% vs 7.0%

- Per-share earnings: 0.71 to 1.31 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.0%

- Ordinary dilution, 5-year annual growth: 0.7%

- Market cap gain: CNY 7.9B

- Cumulative retained earnings: CNY 33B

- Diluted shares, 10-year annual growth: 1.0%

- Diluted shares, 5-year annual growth: 0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.0%

- Per-share value change: CNY 0.60

- Per-share value, starting three-year median: CNY 0.71

- Per-share value, ending three-year median: CNY 1.31

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.6%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 17B

- Cumulative net income, 10 years: CNY 40B

- ROIC, first three-year median: 13.6%

- ROIC, last three-year median: 7.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.71

- FY2017: CNY 1.39

- FY2018: CNY 1.50

- FY2019: CNY 1.98

- FY2020: CNY 2.43

- FY2021: CNY 3.34

- FY2022: CNY 2.66

- FY2023: CNY 2.03

- FY2024: CNY 1.31

- FY2025: CNY -0.71

### accounting: pass

- Sloan accruals: -9.2%

- Receivables to sales index (DSRI): 0.23×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.34×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.7%

- FY2017: -4.0%

- FY2018: 2.3%

- FY2019: -5.2%

- FY2020: -5.5%

- FY2021: -3.0%

- FY2022: -2.3%

- FY2023: -1.4%

- FY2024: -0.2%

- FY2025: -9.2%

## Holders

## Price story

Down 97% since Oct 2021 · sales -2.2%

Story as of 2026-10-16T10:00:13.409Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -2.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 72B 

- FY2017: CNY 86B 

- FY2018: CNY 108B 

- FY2019: CNY 124B 

- FY2020: CNY 148B 

- FY2021: CNY 175B 

- FY2022: CNY 180B 

- FY2023: CNY 179B 

- FY2024: CNY 168B 

- FY2025: CNY 164B 

### Gross margin · FY2025

gross margin 5.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 9.2% 

- FY2017: 10.1% 

- FY2018: 9.2% 

- FY2019: 9.3% 

- FY2020: 9.1% 

- FY2021: 10.5% 

- FY2022: 8.9% 

- FY2023: 7.7% 

- FY2024: 6.3% 

- FY2025: 5.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto & truck dealerships; annual sales are CNY 164.4 billion.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2025-12-31 (filed 2026-10-16T07:45:29.371Z); FY2025: revenue 164403428000; grossProfit 8837736000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0881.HK: Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles in the People's Republic of China. The company operates 4S dealerships for various automobile brands consisting of luxury automobile brands, including Mercedes-Benz, Lexus, BMW, Audi, Jaguar Land Rover, Porsche, Volvo and AITO, as well as mid-to-high end automobile brands, such as Toyota, Nissan, and Honda. It also provides spare parts, automobile accessories, repair and maintenance services, and other automobile-related products and services. In addition, the company offers sales and service of automobile insurance; and provision of other services. The company was founded in 1998 and is headquartered in Dalian, the People's Republic of China.

### Why customers stay

Margins ranged from 5.4% to 7.7% during 2023–25; it earns 13.7% on its capital.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2023-12-31 (filed 2026-10-16T07:45:29.371Z); FY2023: grossProfit / revenue = 7.7%.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2024-12-31 (filed 2026-10-16T07:45:29.371Z); FY2024: grossProfit / revenue = 6.3%.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2025-12-31 (filed 2026-10-16T07:45:29.371Z); FY2025: grossProfit / revenue = 5.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:29.371Z); 10-year return on capital observations [[2016,0.11999209572567225],[2017,0.15302192163665881],[2018,0.13573830132935086],[2019,0.14273856029733098],[2020,0.1585889703886459],[2021,0.18692179822088406],[2022,0.13908593040386721],[2023,0.10449487137746649],[2024,0.0701922721570384],[2025,-0.016025589137684412]]; median 0.13741211586660904. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2016-12-31 (filed 2026-10-16T07:45:29.371Z); FY2016: growth capex 644093000; upkeep 909398000; owner earnings 1860228000. Growth capex / owner earnings = 0.34624411631262403.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2017-12-31 (filed 2026-10-16T07:45:29.371Z); FY2017: growth capex 1333451000; upkeep 993487000; owner earnings 3350413000. Growth capex / owner earnings = 0.3979960082533109.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2018-12-31 (filed 2026-10-16T07:45:29.371Z); FY2018: growth capex 1385802000; upkeep 1174901000; owner earnings 3636636000. Growth capex / owner earnings = 0.3810670080810947.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2019-12-31 (filed 2026-10-16T07:45:29.371Z); FY2019: growth capex 1028282000; upkeep 1738354000; owner earnings 3741348000. Growth capex / owner earnings = 0.2748426502960965.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2020-12-31 (filed 2026-10-16T07:45:29.371Z); FY2020: growth capex 1344194000; upkeep 1939601000; owner earnings 4714847200. Growth capex / owner earnings = 0.2850981045578741.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2021-12-31 (filed 2026-10-16T07:45:29.371Z); FY2021: growth capex 2704874000; upkeep 2373696000; owner earnings 7399956200. Growth capex / owner earnings = 0.36552567703035865.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2022-12-31 (filed 2026-10-16T07:45:29.371Z); FY2022: growth capex 587363006.9907618; upkeep 3263980993.0092382; cash acquisitions 0; owner earnings 5403333006.990762. Growth capex plus acquisitions / owner earnings = 0.1087038326586274.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2023-12-31 (filed 2026-10-16T07:45:29.371Z); FY2023: growth capex 0; upkeep 2892938000; cash acquisitions 139468000; owner earnings 3302072400. Growth capex plus acquisitions / owner earnings = 0.042236505777402095.

- Source: https://eodhd.com/api/fundamentals/0881.HK.json#2024-12-31 (filed 2026-10-16T07:45:29.371Z); FY2024: growth capex 0; upkeep 2100858000; cash acquisitions 22971000; owner earnings 2054466335400. Growth capex plus acquisitions / owner earnings = 0.000011181005794153155.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:29.371Z); Dividend observations: [[2016,90153000],[2017,561204000],[2018,667207000],[2019,738698000],[2020,932601000],[2021,1113189000],[2022,1728450000],[2023,2374883000],[2024,1734665000],[2025,1429745000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 61.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0881.HK SharesStats.PercentInsiders = 61.387 percentage points; cache date 2026-10-16.

### What the price says

The price is less than 0.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:29.371Z); Closing price 2.32 HKD; reporting-to-trading FX 1.1727222788982186; FY2025 annual sales per share 69.45663466639921; price multiple 0.02848256336288791. FY2025 cash earnings/share -1.2213472308440878. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 7.81 per share

- 2016-11: HKD 7.20 per share

- 2016-12: HKD 6.93 per share

- 2017-01: HKD 9.68 per share

- 2017-02: HKD 11.26 per share

- 2017-03: HKD 11.56 per share

- 2017-04: HKD 10.98 per share

- 2017-05: HKD 11.98 per share

- 2017-06: HKD 14.56 per share

- 2017-07: HKD 17.10 per share

- 2017-08: HKD 17.00 per share

- 2017-09: HKD 16.92 per share

- 2017-10: HKD 16.02 per share

- 2017-11: HKD 16.04 per share

- 2017-12: HKD 17.84 per share

- 2018-01: HKD 19.66 per share

- 2018-02: HKD 19.90 per share

- 2018-03: HKD 21.45 per share

- 2018-04: HKD 22.60 per share

- 2018-05: HKD 25.15 per share

- 2018-06: HKD 23.55 per share

- 2018-07: HKD 17.88 per share

- 2018-08: HKD 17.22 per share

- 2018-09: HKD 19.06 per share

- 2018-10: HKD 14.30 per share

- 2018-11: HKD 15.90 per share

- 2018-12: HKD 15.52 per share

- 2019-01: HKD 14.06 per share

- 2019-02: HKD 18.24 per share

- 2019-03: HKD 19.48 per share

- 2019-04: HKD 20.60 per share

- 2019-05: HKD 19.74 per share

- 2019-06: HKD 21.75 per share

- 2019-07: HKD 22.00 per share

- 2019-08: HKD 24.50 per share

- 2019-09: HKD 24.75 per share

- 2019-10: HKD 26.05 per share

- 2019-11: HKD 27.75 per share

- 2019-12: HKD 31.90 per share

- 2020-01: HKD 28.80 per share

- 2020-02: HKD 29.65 per share

- 2020-03: HKD 27.10 per share

- 2020-04: HKD 31.30 per share

- 2020-05: HKD 39.80 per share

- 2020-06: HKD 42.90 per share

- 2020-07: HKD 47.85 per share

- 2020-08: HKD 48.40 per share

- 2020-09: HKD 48.35 per share

- 2020-10: HKD 55.10 per share

- 2020-11: HKD 58.20 per share

- 2020-12: HKD 55.25 per share

- 2021-01: HKD 45.55 per share

- 2021-02: HKD 48.00 per share

- 2021-03: HKD 54.80 per share

- 2021-04: HKD 58.85 per share

- 2021-05: HKD 66.75 per share

- 2021-06: HKD 64.60 per share

- 2021-07: HKD 71.40 per share

- 2021-08: HKD 65.00 per share

- 2021-09: HKD 62.70 per share

- 2021-10: HKD 70.35 per share

- 2021-11: HKD 64.15 per share

- 2021-12: HKD 60.80 per share

- 2022-01: HKD 59.65 per share

- 2022-02: HKD 54.40 per share

- 2022-03: HKD 55.40 per share

- 2022-04: HKD 52.30 per share

- 2022-05: HKD 55.70 per share

- 2022-06: HKD 55.35 per share

- 2022-07: HKD 44.85 per share

- 2022-08: HKD 37.25 per share

- 2022-09: HKD 31.35 per share

- 2022-10: HKD 29.80 per share

- 2022-11: HKD 39.80 per share

- 2022-12: HKD 40.15 per share

- 2023-01: HKD 44.25 per share

- 2023-02: HKD 39.15 per share

- 2023-03: HKD 38.70 per share

- 2023-04: HKD 33.40 per share

- 2023-05: HKD 28.90 per share

- 2023-06: HKD 29.95 per share

- 2023-07: HKD 27.25 per share

- 2023-08: HKD 23.90 per share

- 2023-09: HKD 22.05 per share

- 2023-10: HKD 18.04 per share

- 2023-11: HKD 18.70 per share

- 2023-12: HKD 18.68 per share

- 2024-01: HKD 13.14 per share

- 2024-02: HKD 14.36 per share

- 2024-03: HKD 13.56 per share

- 2024-04: HKD 14.38 per share

- 2024-05: HKD 14.14 per share

- 2024-06: HKD 11.42 per share

- 2024-07: HKD 12.22 per share

- 2024-08: HKD 8.95 per share

- 2024-09: HKD 14.42 per share

- 2024-10: HKD 11.92 per share

- 2024-11: HKD 15.32 per share

- 2024-12: HKD 13.96 per share

- 2025-01: HKD 12.28 per share

- 2025-02: HKD 12.68 per share

- 2025-03: HKD 13.68 per share

- 2025-04: HKD 11.72 per share

- 2025-05: HKD 11.84 per share

- 2025-06: HKD 12.10 per share

- 2025-07: HKD 13.24 per share

- 2025-08: HKD 16.07 per share

- 2025-09: HKD 14.58 per share

- 2025-10: HKD 12.28 per share

- 2025-11: HKD 11.71 per share

- 2025-12: HKD 11.62 per share

- 2026-01: HKD 11.65 per share

- 2026-02: HKD 10.36 per share

- 2026-03: HKD 8.22 per share

- 2026-04: HKD 7.10 per share

- 2026-05: HKD 6.16 per share

- 2026-06: HKD 4.85 per share

- 2026-07: HKD 4.53 per share

- 2026-08: HKD 4.27 per share

- 2026-09: HKD 2.70 per share

- 2026-10: HKD 2.32 per share

## Annual estimated value (HKD per share)

- FY2018: low HKD 20.58 per share, central HKD 28.46 per share, high HKD 33.04 per share

- FY2019: low HKD 28.78 per share, central HKD 40.03 per share, high HKD 46.58 per share

- FY2020: low HKD 35.81 per share, central HKD 49.92 per share, high HKD 58.14 per share

- FY2021: low HKD 41.52 per share, central HKD 57.74 per share, high HKD 67.18 per share

- FY2022: low HKD 39.51 per share, central HKD 53.95 per share, high HKD 62.65 per share

- FY2023: low HKD 40.42 per share, central HKD 54.73 per share, high HKD 63.25 per share

- FY2024: low HKD 35.40 per share, central HKD 39.26 per share, high HKD 44.40 per share

- FY2025: low HKD 35.31 per share, central HKD 39.00 per share, high HKD 43.91 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations