Summary by Moomoo AI
Meidong Auto Holdings Limited (Meidong Auto) has issued a profit warning, expecting a shareholder's attributable loss of no more than 30 million yuan in the first half of 2024, compared to a profit of approximately 44.7 million yuan in the same period of 2023. The loss is mainly due to weak market demand, price decline, macroeconomic factors, weakened consumer power, supply-demand imbalance, and the impact of promotional models. In addition, the company has assessed the impairment of several cash-generating units, confirming a non-cash impairment of approximately 15 million yuan for intangible assets and dealer rights, and additional non-cash costs related to the convertible bonds issued by Sail Vantage Limited of approximately 50.6 million yuan. Despite this, the board of directors evaluates that the group's operational cash flow is normal and the overall financial situation is robust. The company will release a more detailed mid-term performance announcement at the end of August 2024. Shareholders and potential investors should exercise caution.