Buyang International (2457) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 16.6% YoY to RMB367.1 million; profit for the year declined 23.5% to RMB41.3 million.

• Overseas sales rose 6.5% to RMB245.5 million, but lower domestic wheel sales and weaker demand and pricing conditions weighed on overall results.

Financial highlights

• Revenue was RMB367.1 million versus RMB440.3 million in FY2022; gross profit was RMB73.1 million versus RMB86.8 million.

• Operating profit was RMB50.0 million, down from RMB70.7 million; profit before tax was RMB57.1 million versus RMB71.9 million.

• Profit for the year was RMB41.3 million versus RMB54.0 million; total comprehensive income was RMB40.7 million versus RMB54.1 million.

• Basic and diluted EPS was RMB0.04 versus RMB0.07; other revenue included a RMB5.0 million government listing subsidy.

Outlook and guidance

• Priorities include new product development, expanded multichannel sales and distribution, brand building, production capacity expansion, operational efficiency and employee development.

• Plans include 2024 capacity expansion, new production facilities and development of moulds and prototypes; intended funding includes operating cash, loans and Global Offering proceeds.

• Livestreaming e-commerce is planned through the Buyang Buy activity, with development expected to be funded from internal resources.