Yadea Group (1585) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB14,413.8 million, down 15.4% year-over-year due to lower sales volumes amid market and regulatory challenges.

• Net profit attributable to shareholders declined 12.9% to RMB1,033.9 million, with EPS down to 34.5 RMB cents.

• Gross profit margin improved to 18.0% from 16.9% year-over-year, driven by product mix optimization and higher battery prices.

• Management remains focused on R&D, overseas expansion, and leveraging regulatory changes for long-term growth.

Financial highlights

• Revenue: RMB14,413.8 million (down 15.4% year-over-year).

• Gross profit: RMB2,593.8 million (down 9.8% year-over-year).

• Cash and cash equivalents: RMB7,067.6 million as of 30 June 2024, down 10.7% from year-end 2023.

• Net cash outflow from operating activities: RMB696.5 million (compared to inflow of RMB2,572.8 million year-over-year).

• Gearing ratio: 22.3% (up from 9.9% at year-end 2023).

Outlook and guidance

• Gradual sales recovery observed in May and June 2024 signals a positive trend despite earlier market weakness.

• Management expects new battery regulations to benefit the company due to in-house expertise and industry leadership.

• Full utilization of net proceeds from prior share placement expected by end of 2025, with RMB411.4 million remaining.