New Gonow Recreational Vehicles (805) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 20.0% to RMB864.2m; gross profit increased 48.3% to RMB268.5m, while profit for the year fell to RMB45.5m from RMB78.8m.

• A shift toward higher-priced direct RV sales lifted gross margin to 31.1%; higher selling, administrative and finance costs, plus foreign-exchange losses, weighed on reported earnings.

• Adjusted net profit, excluding RMB27.4m of listing expenses, was RMB72.9m; the shares listed in Hong Kong on January 13, 2025.

Financial highlights

• Revenue was RMB864.2m, up 20.0% YoY; RV sales contributed RMB799.2m, up 12.5%, and pre-owned RV sales were RMB56.1m versus RMB8.7m in 2023.

• Gross profit rose 48.3% to RMB268.5m; cost of sales increased 10.4% to RMB595.6m, reflecting higher raw-material and consumables costs with increased RV sales volume.

• Operating profit declined to RMB73.9m from RMB110.0m; profit before tax was RMB61.5m versus RMB107.7m, and profit for the year was RMB45.5m versus RMB78.8m.

• Other results included an RMB15.4m loss versus RMB14.5m income in 2023, mainly from AUD/RMB exchange-rate movements; finance costs rose to RMB12.4m from RMB2.3m.

• Adjusted net profit was RMB72.9m versus RMB78.8m, adding back RMB27.4m of listing expenses to reported 2024 net profit of RMB45.5m.

Outlook and guidance

• Strategic priorities include strengthening Australasian leadership, entering Europe and Canada, refreshing the RV range, elevating brands, and upgrading and automating production.

• European expansion plans include local distributor partnerships, competitive pricing, exports from PRC facilities, and potential later assembly in Europe as demand develops.

• Product plans emphasize customization and customer experience; a towable electric RV model is in development.