[9690] Tuhu Auto Care Adjusts Net Profit Up 12%, Transaction Users Up 18% - First Expands Overseas Storefronts

Mainland China Car Maintenance Service Platform Tuhu Car Care (09690)
By 2025, total revenue is expected to increase by 11.5% to 16.5 billion yuan (RMB), with adjusted net profit rising by 12.2% year-on-year to 700 million yuan, with no dividends paid.

Tuhu Expands Overseas, Testing High-Premium and Cost-Effective Markets

Tuhu Car Care has begun exploring overseas markets. By the end of 2025, franchise Tuhu factory stores will officially operate in Malaysia. Tuhu Car Care states that the total number of overseas Tuhu factory stores in operation and under preparation has exceeded 10. Additionally, as of now, Tuhu has 2 Tuhu factory stores in Hong Kong.

Chen Min pointed out that the overseas market is still in the early stages. The development strategy is to test waters in representative markets and observe whether the company’s operating model is feasible. Hong Kong represents a high-premium market with strong consumer purchasing power. The high entry barrier market environment is conducive to testing Tuhu’s brand influence, supply chain efficiency, and standardization capabilities. In Malaysia, vehicles tend to be older, maintenance demand is strong, and users are price-sensitive. Tuhu’s high cost-performance products and past maintenance experience give it an advantage.

Operating Profit Drops 23.8%, Tire and Chassis Parts Gross Margin Under Pressure

During the period, operating profit fell 23.8% to 250 million yuan. Adjusted EBITDA increased 8.5% year-on-year to 840 million yuan. Gross profit margin decreased from 25.4% in 2024 to 24.1% in 2025, down 1.3%. Tuhu Car Care CFO Zhang Zhizong stated that, across business segments, the gross margin for tires and chassis parts declined to 14.1%, mainly due to the reduction in tire guide prices. Although sales proportion increased and adjustments were made to consumables and self-controlled products, these factors temporarily pressured short-term gross margins.

Net Store Growth of 1,134, 39% in Tier 3 and Below Cities

As of the end of December, the total number of Tuhu factory stores reached 8,008, including 175 self-operated Tuhu factory stores and 7,833 franchise stores operated by over 3,500 franchisees. The net increase in stores for the year was 1,134, with about 39% located in third-tier and below cities, and 14% in first-tier cities across mainland China.

Chairman, Executive Director, and CEO Chen Min said that despite the industry being in a period of adjustment, store expansion continues because 1) store operation efficiency is improving, with digital management maintaining stable customer sources, sufficient inventory, and efficient distribution; 2) the franchise ecosystem is strong, with 90% of stores open for over six months remaining profitable, supported by subsidies from the company.