Yadea Group (1585) investor relations material

Executive summary

• Revenue for H1 2026 was RMB18,236.1 million, down 5.0% year-over-year due to lower sales of electric bicycles and batteries, offset by strong growth in electric scooters and overseas markets, especially Southeast Asia.

• Gross profit fell 14.0% to RMB3,235.9 million, with gross margin declining to 17.7% from 19.6% year-over-year, mainly due to product mix changes and lower margin in batteries and electric drive.

• Net profit attributable to owners decreased 27.2% to RMB1,200.9 million, reflecting lower operating profit and higher working capital needs.

• Domestic market faced short-term demand pressure from new national standards, while overseas business showed robust growth.

Financial highlights

• Revenue: RMB18,236.1 million (down 5.0% year-over-year).

• Gross profit: RMB3,235.9 million (down 14.0% year-over-year); gross margin: 17.7%.

• Net profit attributable to owners: RMB1,200.9 million (down 27.2% year-over-year).

• Basic and diluted EPS: RMB39.4 cents (down from RMB54.3 cents year-over-year).

• Cash and cash equivalents: RMB7,122.8 million as of 30 June 2026 (up 18.9% from 31 December 2025).

Outlook and guidance

• Domestic demand expected to recover in H2 2026 as market adapts to new standards.

• Focus on product innovation, portfolio optimization, operational efficiency, and overseas expansion.

• Continued expansion in overseas markets with enhanced local manufacturing and supply chain capabilities.