Understanding the Market | CHANGJIU HLDGS rose over 45% in the afternoon, expecting a year-on-year increase in net profit of up to 60% as policies propose extending the automotive consumption chain

CHANGJIU HLDGS rose over 45% in the afternoon, and as of the time of writing, it has increased by 36.63%, trading at HKD 5.52, with a transaction volume of HKD 10.2975 million. In terms of news, CHANGJIU HLDGS announced a profit warning, expecting to record a net profit of approximately RMB 161 million to RMB 163 million last year, an increase of about 57.4% to 59.3% year-on-year. The company stated that the increase in net profit during the period was mainly due to the rise in income from pledged vehicle monitoring services, which was primarily attributed to the increase in the number of service agreements; a reduction in listing expenses and share-based compensation expenses related to the share incentive plan; and an increase in other income from the termination of other payables to customers. In addition, the General Office of the Central Committee and the General Office of the State Council issued the "Special Action Plan to Boost Consumption." Among them, it proposed to extend the automotive consumption chain. It will carry out pilot reforms in automotive circulation consumption, expand automotive aftermarket consumption such as vehicle modification, leasing, events, and RV camping. It aims to cultivate and strengthen the main entities in the used car business and continuously implement facilitation measures such as "reverse invoicing" for used car sales and cross-regional transaction registration. It will enhance information sharing in the automotive field, support the development of third-party used car information inquiry platforms, and promote safe and convenient transactions of used cars