Luyuan Group Holding (Cayman) (2451) H2 2023 earnings summary

Executive summary

• FY23 revenue reached RMB5,083.0m (+6.3% YoY), gross profit RMB681.2m (+21.4%) and profit RMB145.6m (+23.4%).

• Higher sales volume, stronger high-end product mix and scale efficiencies supported growth; the October 2023 listing marked a new development phase.

• Offline distribution covered 324 cities across 30 provincial-level regions; 489 patents were held as of year-end.

Financial highlights

• Operating profit was RMB140.4m versus RMB125.8m in FY22; profit before tax was RMB151.1m versus RMB122.2m.

• Gross profit rose to RMB681.2m from RMB561.3m; cost of sales increased 4.3% to RMB4,401.7m.

• Net finance income was RMB10.7m versus net finance costs of RMB3.7m, reflecting higher bank-deposit interest income and lower borrowing interest expense.

• Other income rose to RMB62.7m from RMB37.8m, mainly on increased government grants; other gains, net fell to RMB8.7m from RMB33.6m.

• Selling and marketing, administrative, and R&D costs were RMB316.2m, RMB99.2m and RMB189.4m, up 21.8%, 11.4% and 25.8%, respectively.

Outlook and guidance

• Chongqing Plant construction is underway; planned capacity is expected to rise incrementally to ~2.0m units annually by 2026.

• FY24 priorities include advancing liquid-cooling and battery-maintenance technology, developing new product categories, and expanding production capacity.

• Plans include expanding retail and distribution coverage, brand campaigns, and international sales in Southeast Asia, with cooperation and product development targeting Europe and the U.S.