Buyang International (2457) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 6.79% YoY to RMB392.0m, while profit for the year fell 53.58% to RMB19.2m and EPS declined to RMB0.02 from RMB0.04.

• Operations focus on aftermarket aluminum alloy automobile wheels; installed equipment supported designed annual capacity of ~1.2m wheels.

Financial highlights

• Revenue was RMB392.0m vs RMB367.1m; gross profit was RMB49.7m vs RMB73.1m; profit before tax was RMB24.4m vs RMB57.1m.

• Operating profit fell to RMB19.7m from RMB50.0m; net finance income declined to RMB4.7m from RMB7.1m.

• R&D costs rose to RMB14.5m from RMB9.1m on increased project activity; cost of sales increased to RMB342.3m from RMB294.0m, mainly with higher wheel sales volume.

• Other revenue fell to RMB1.9m from RMB7.3m, excluding the one-off RMB5.0m government listing subsidy received in 2023.

Outlook and guidance

• Priorities include new products, expanded domestic and overseas distribution, increased capacity, efficiency improvements, R&D, digital transformation and customer-focused solutions; no quantified earnings guidance was stated.

• Production expansion and new molds/prototypes are planned, with use of proceeds expected by September 2026; financing is expected from operating cash, loans and Global Offering proceeds.