Yadea Group (1585) H2 2024 earnings summary

Executive summary

• Revenue declined 18.8% year-over-year to RMB28,236.2 million, mainly due to lower sales volume and reduced selling prices amid regulatory changes and market headwinds.

• Net profit attributable to owners dropped 51.8% to RMB1,272.4 million, reflecting industry challenges and strategic inventory clearance.

• Yadea maintained its global leadership in electric two-wheeled vehicles, surpassing 100 million cumulative sales and expanding in Southeast Asia.

Financial highlights

• Gross profit fell 27.1% to RMB4,289.0 million; gross margin decreased to 15.2% from 16.9% year-over-year.

• Basic EPS dropped 52.3% to RMB42.2 cents; diluted EPS at RMB42.1 cents.

• Final dividend of 22.0 HK cents and special dividend of 23.0 HK cents per share proposed for 2024.

• Cash and cash equivalents stood at RMB7,868.9 million, down 0.6% from prior year.

• Gearing ratio increased to 16.4% from 9.9% year-over-year.

Outlook and guidance

• Anticipates industry stabilization and renewed growth in 2025 as new national standards take effect and government “trade-in” policies gain traction.

• Plans to strengthen youth-focused marketing, accelerate global expansion, and launch sodium-ion battery-powered e-bikes.