New Gonow Recreational Vehicles (805) H1 2025 earnings summary

Executive summary

• H1 revenue declined 2.4% YoY to RMB411.7m; profit for the period fell 23.3% to RMB31.0m as RV sales volume and gross margin weakened.

• Direct and JV-store sales, used-RV revenue, new models and overseas expansion initiatives partly offset softer overall RV sales.

Financial highlights

• Revenue was RMB411.7m, down 2.4% YoY; RV sales revenue fell 7.4% to RMB367.6m, primarily due to lower unit sales.

• Gross profit declined 9.9% to RMB121.6m; gross margin narrowed to 29.5% from 32.0%, mainly due to promotional pricing for newly launched RVs.

• Operating profit fell 25.6% to RMB43.8m; profit before tax was RMB37.6m, down 30.3%, and profit for the period was RMB31.0m versus RMB40.4m.

• Used-RV revenue rose to RMB35.4m from RMB23.4m; direct-sales volume increased to 610 units from 438, with revenue of RMB188.0m versus RMB144.4m.

• Operating cash flow was an outflow of RMB42.8m versus an inflow of RMB35.6m; cash and cash equivalents were RMB24.9m at June 30 versus RMB29.3m at year-end 2024.

Outlook and guidance

• European expansion priorities include acquisition screening, product finalization, EU certification and customer development; Type B motorhomes are the initial focus, with new-energy RVs targeted as opportunities mature.

• Canadian plans include three locally compliant prototype models, distributor outreach and demonstration sales cases targeted for 2026; localization and promotion investment is planned over the next three years.

• Australasia is expected to remain a stable revenue base and product-testing market; near-term plans focus on Hybrid models, supporting longer-term North American and European expansion.

• New Zhejiang production-base construction is expected no earlier than 2026 after local authorities could not approve the planned land transfer; alternative land is being sought.