China Yongda Automobile Services Hldg : ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2016

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

China Yongda Automobiles Services Holdings Limited

（中國永達汽車服務控股有限公司）

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 03669) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2016

The board of directors (the "Board") of China Yongda Automobiles Services Holdings Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (together, the "Group", "we" or "us") for the year ended December 31, 2016, together with comparative figures for the year ended December 31, 2015.

GROUP FINANCIAL HIGHLIGHTS

• Consolidated revenue including revenue from finance and insurance agency services was RMB43,739 million in 2016, a 21.2% increase from RMB36,079 million in 2015.

• Consolidated gross profit including revenue from finance and insurance agency services was RMB4,512 million in 2016, a 30.8% increase from RMB3,449 million in 2015.

• Consolidated gross profit margin including revenue from finance and insurance agency services was 10.31% in 2016, a 0.75 percentage point increase from 9.56% in 2015.

• Net profit was RMB908 million in 2016, a 60.0% increase from RMB567 million in 2015.

• Net profit attributable to the owners of the Company was RMB851 million in 2016, a 62.3% increase from RMB524 million in 2015.

• Basic earnings per share was RMB0.58 in 2016 (2015: RMB0.35).

• The final dividend proposed for 2016 is HK$0.19 per share (approximately RMB0.17 per share), which is subject to the consideration and approval of the shareholders at the forthcoming annual general meeting of the Company.

MANAGEMENT DISCUSSION & ANALYSIS MARKET REVIEW

In 2016, China's passenger vehicles presented a relatively higher growth in sales volume as compared to 2015. According to the information of China Association of Automobile Manufacturers, the sales volume of passenger vehicles in China was 24.38 million units for 2016, representing an increase of 14.9% compared to the same period in 2015, among which, the sales volume of sport utility passenger vehicles recorded a faster growth at a growth rate of 44.6%, representing 37.1% of the passenger vehicle market share. In 2016, benefiting from the continuity of China's preferential policies on vehicle purchases and the cyclical adjustments in the passenger vehicle market over the past years, the passenger vehicle market in China had turned the corner, resulting in higher price and sales volumes. As the Chinese macro-economic conditions further stabilize, it is expected that the sales volume of passenger vehicles in China would continue to grow in 2017 and the profitability of the automobile dealers would continue to improve.

In 2016, under the guidance of the national supply-side reform policy, a substantial number of luxury brand passenger vehicles manufacturers took the initiative to reduce their sales volume growth targets for the year in order to stabilize retail prices of new vehicles and to reduce the inventories of dealers for the purpose of achieving a sustainable and sound growth in sales volume. As a result, in 2016, the channel inventories of luxury and ultra-luxury brand passenger vehicles in China experienced continuous reduction, the price of new vehicles tended to stabilize and exhibited a trend of recovery in the second half of the year. The overall sales volume recorded a faster growth in the second half of the year. In the medium- to long-term, driven by the strong demand for product updating and upgrading and the rising permeability rate of automobile finance, it is anticipated that the growth of the sales volume of luxury and ultra-luxury brand passenger vehicles in China will continue to be faster than that of the overall growth of passenger vehicles in China, and that the proportion of sales volume of luxury and ultra-luxury brand passenger vehicles contributing to the sales volume of the passenger vehicles in China would further increase.

According to the statistics of the Traffic Management Bureau of the Ministry of Public Security, vehicle ownership in China reached 194 million units by the end of 2016, making it the second largest in the world, only after the United States of America (the "US"). With the continuous rise in passenger vehicle ownership and the aging of vehicles in China, the after-sales services market for passenger vehicles in China has maintained its fast growing pace in 2016. According to the results released by AutoNation for the fourth quarter of 2016, the largest automobile dealer in the US, the revenue and gross profit generated from new vehicle sales in 2016 only accounted for 57% and 19% of its total revenue and gross profit, respectively, while the remaining revenue and gross profit were generated from after-market services, such as automobile repair and maintenance, accessories, finance and insurance services, and pre-owned vehicles services. Compared to the data from China Automobile Dealers Association, the proportion of revenue of China's listed automobile dealership groups derived from new vehicle sales decreased by an average of 1.25 percentage points from 2014 to 2015, while the proportion of revenue derived from after-sales business increased by 1.1 percentage points, representing 9.75% of the total revenue. The gross profit derived from vehicles sales services decreased by an average of 5.33 percentage points, but the gross profit generated from the business of after-sales services recorded an average growth of 5.85 percentage points as compared to last year. On the basis of the foregoing, as a result of the industrial cyclical adjustments over the past years, the composition of revenue and gross profit of the automobile dealers had experienced a structural transformation. As the proportion of gross profit generated from new vehicles sales continued to mature and remained stable, the rapid growth of the extended services businesses such as after-sales services, pre-owned vehicles services and finance and insurance services has started to stimulate the improvement of profitability.

According to the data from China Automobile Dealers Association, the transaction volume of pre- owned vehicles in China reached 10.39 million units in 2016. With the increase in the vehicle ownership in China and the speeding up of product updating and upgrading, the growth of the pre- owned vehicle market in China has accelerated. China Automobile Dealers Association forecasts that the transaction volume of pre-owned vehicles in China is expected to exceed 12.5 million units in 2017, representing a year-on-year increase of approximately 20%.

According to the data from China Automobile Dealers Association, the permeability rate of automobile consumer finance was approximately 38% in 2016, representing a significant increase over the previous years. However, there remains significant room for the growth of the permeability rate of China's automobile consumer finance as compared to the developed countries and regions, such as the US and Europe. Benefiting from the higher level of acceptance of automobile consumer finance among the younger generations and the wider variety of automobile finance products, it is expected that the permeability rate of China's automobile consumer finance will rise further in the future, creating huge potential for growth. Deloitte Touche Tohmatsu forecasts in the White Paper on Automobile Finance in China (2015) that the permeability rate of automobile consumer finance in China will reach 50% by 2020, and the market size is expected to exceed RMB2 trillion.

According to the data from www.chyxx.com, in terms of income, the highly fragmented long-term automobile rental market accounts for the largest portion of China's automobile rental market. The long-term automobile rental market increased from RMB7 billion in 2009 to RMB35.5 billion in 2015 with a compound annual growth rate (CAGR) of 31%. Driven by factors such as increased car use by enterprises, financial optimization of enterprises and reform policies of government vehicles, the long-term automobile rental market in China is expected to maintain a relatively fast growth with further integration in the future. According to the forecast by Deloitte Touche Tohmatsu in the White Paper on Automobile Finance in China (2015) as mentioned above, it is expected that the market size of China's automobile rental market will amount to RMB58 billion by 2018.

According to the data from China Association of Automobile Manufacturers, the production and sales volume of new energy vehicles in 2016 in China reached 517,000 units and 507,000 units, respectively, representing a year-on-year increase of 51.7% and 53%, respectively. The sales of pure electric vehicles accounted for 81% of the new energy vehicles sales, taking the lead in the new energy vehicles industry. With the rapid launch of competitive new energy vehicle models, the introduction of supportive national policies and the continuous improvement of infrastructures of the new energy vehicles industry, it is believed that new energy vehicles business will enjoy great potential for growth in the future.

BUSINESS REVIEW

As a leading passenger vehicle retailer and comprehensive service provider in China, we achieved a strong growth in 2016. In 2016, our consolidated revenue and consolidated gross profit, taking into account the revenue from finance and insurance agency services, were RMB43,739 million and RMB4,512 million, respectively, representing an increase of 21.2% and 30.8%, respectively, compared to the same period in 2015. Taking into account the revenue from finance and insurance agency services, our consolidated gross profit margin for 2016 was 10.31%, representing an increase of 0.75 percentage point compared to 9.56% for the same period in 2015. In 2016, our net profit was RMB908 million, representing an increase of 60.0% as compared to the same period

in 2015. Net profit attributable to owners of the Company was RMB851 million, representing an increase of 62.3% as compared to the same period in 2015. Set forth below is a summary of major developments of our businesses in 2016:

Steady and Fast Growth in New Vehicle Sales

The passenger vehicle sales market in China exhibited a steady and fast growth in 2016. Against this backdrop, our sales volume of new vehicles exhibited a fast growth and reached 147,262 units, representing a 26.5% increase compared to the same period in 2015. Our sales revenue of new vehicles from our passenger vehicle sales and services segment was RMB37,304 million in 2016, representing a 19.4% increase compared to the same period in 2015. Our gross profit margin for new vehicles sales from our passenger vehicle sales and services segment was 3.10% in 2016, representing a slight increase as compared to 3.06% for the same period in 2015.

In respect of the management and marketing of new vehicle sales, we strengthened the comprehensive management on sales quality of new vehicles and implemented our enterprise tracking and assessment model focusing on the consolidated gross profit of sales in order to improve the comprehensive profitability of new vehicle per unit and ensured a rapid growth in the consolidated gross profit of new vehicle sales. We further enhanced the retail rate of new vehicles and continued to improve the permeability rate of our extended services businesses, such as automobile finance, automobile insurance and automobile accessories, and hence ensured the fast growth in the profitability of our extended services businesses. In addition, we also carried out a comprehensive management of new vehicle inventories and reinforced the tracking of the composition of the vehicle models in stock and the overdue inventories to ensure the continuous optimization of the inventory structure of new vehicle that effectively reduced cost of sales. Meanwhile, we continued to expand our sales channels and cooperated with a number of industry- leading leasing companies and vehicle sharing platforms and proactively tapped into the nationwide leaseable vehicle procurement markets in light of the lessons learned in the established international automobile markets. At the same time, we extensively carried out efficient integration and sharing of enterprise resources within the Group to enhance marketing capability and brand effect. In addition, we improved internal refined management and reinforced the effective use of customer resources, thus achieving the rapid growth in new vehicle sales volume in 2016.

Fast Growth in After-sales Services

In 2016, our after-sales services business (including repair and maintenance services and automobile extended products and services) achieved healthy and rapid growth, recording a revenue of RMB5,446 million, representing an increase of 31.7% compared to the same period in 2015. In 2016, our gross profit margin for after-sales services was 45.72 %, representing a modest growth as compared to 45.56 % for the same period in 2015.

In respect of the optimization of internal management, the per capita repair and maintenance service income and service efficiency of our repair and maintenance workforce were further increased through the continuous adjustment and optimization of our after-sales services management structure and internal business processes. By doing so, we enhanced our sensitivity and response to market changes, such that we are able to capitalize on the market opportunities and secure more market resources, whereby ensuring the rapid development of our after-sales services.

In respect of attracting and retaining customers, we continued to strengthen the promotion of our self-owned after-sales service booking platform system, deepen the collaboration with third party internet platforms such as Tmall, and strengthen the customized services such as delivery and pick- up service. At the same time, we launched in time a series of customized services and products to meet the needs of our customers and win their recognition, thereby enhancing our customer loyalty and achieving good results, contributing to the increasing enhancement of our customer loyalty.