Luyuan Group Holding (Cayman) (2451) H2 2024 earnings summary

Executive summary

• FY24 revenue was RMB5,072.0m, down 0.2% YoY; profit fell 20.3% to RMB116.1m, while profit excluding share-based payment expenses was RMB154.0m, down 5.9%.

• Lower average selling prices, product mix changes and higher R&D costs pressured earnings amid intensified competition; electric bicycle sales supported revenue resilience.

Financial highlights

• Gross profit decreased 2.4% to RMB665.0m; gross margin was 13.1%, versus 13.4% in FY23.

• Operating profit was RMB110.2m, down from RMB140.4m; profit before tax was RMB125.4m, versus RMB151.1m.

• Basic EPS was RMB0.30 and diluted EPS RMB0.29, compared with RMB0.43 for each measure in FY23.

• R&D costs rose 22.1% to RMB231.2m; administrative expenses increased 4.6% to RMB103.8m, partly reflecting share-based payments.

Outlook and guidance

• 2025 priorities include developing premium LYVA electric-assisted bicycles, expanding battery-swapping, shared mobility and after-sales services, and pursuing overseas growth.

• Chongqing plant phase 1 is projected to reach annual capacity of 2.0m units by 2026 after ramp-up; trial operations began in Nov 2024.

• Planned manufacturing transformation includes automation, industrial internet connectivity, digital twins and AI, with smart-factory national recognition targeted by 2026.

• Management expects trade-in programs and new national standards to support market growth and consolidation, with competition shifting toward quality and mid-to-high-end products.