Luyuan Group Holding (Cayman) (2451) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 3.2% YoY to RMB2,533.9m; profit for the period increased 9.6% to RMB66.0m, supported by higher sales volume.

• Operating profit declined to RMB54.4m from RMB62.5m, while profit before tax rose to RMB66.7m, aided by higher net finance income and lower income tax expense.

Financial highlights

• Revenue was RMB2,533.9m versus RMB2,454.9m; cost of sales rose 3.3% to RMB2,231.0m.

• Gross profit increased 2.5% to RMB302.9m; gross margin remained ~12.0%.

• Net finance income rose to RMB12.5m from RMB1.7m, while income tax expense fell to RMB0.7m from RMB4.1m.

• Basic EPS was RMB0.162 versus RMB0.188; diluted EPS was RMB0.159 versus RMB0.188, reflecting a higher weighted-average share count.

Outlook and guidance

• Chongqing Plant construction is underway, with planned capacity expected to ramp to ~2m units annually by 2026.

• Priorities include digital battery technology, product and battery-swapping development, distribution expansion and international growth.

• A nationwide trade-in campaign is planned to promote vehicles with digital battery maintenance systems and broaden the user base.