Buyang International (2457) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 21.16% YoY to RMB161.7m; profit for the period declined 34.47% to RMB16.7m.

• Sold over 428,400 aluminum alloy wheels, including 262,300 overseas; overseas markets contributed 63.51% of revenue.

• Developed 196 new products; the R&D department completed its first intelligent conveyor-line and high-strength wheel processing project.

Financial highlights

• Revenue was RMB161.7m versus RMB205.1m; gross profit RMB24.9m versus RMB39.7m; profit before tax RMB22.5m versus RMB34.0m.

• Operating profit was RMB19.3m versus RMB34.0m; net finance income was RMB3.2m versus net finance costs of RMB0.1m; net income was RMB16.7m versus RMB25.5m.

• Other revenue rose to RMB5.6m, primarily due to a one-time RMB5.0m government listing subsidy.

Outlook and guidance

• H2 priorities: enter new markets, acquire customers and maintain communication with existing customers; management remained optimistic while recognizing industry and competitive uncertainty.

• Continued execution of business strategies amid slower industry growth and intense competition.