Yadea Group (1585) H2 2025 earnings summary

Executive summary

• Revenue grew 31.1% year-over-year to RMB37,008.2 million, driven by higher sales volumes, product mix optimization, and increased R&D and marketing investments.

• Profit attributable to owners surged 128.8% to RMB2,911.6 million, with basic EPS up 127.0% to RMB95.8 cents.

• Sales of electric scooters and bicycles rose from 13.0 million units in 2024 to 16.3 million in 2025.

• Strategic focus included technological innovation, brand engagement with younger consumers, and international expansion, notably in Southeast Asia.

Financial highlights

• Gross profit increased 64.9% to RMB7,071.4 million; gross margin improved from 15.2% to 19.1%.

• Cost of sales rose 25.0% to RMB29,936.8 million, in line with revenue growth.

• Other income and gains rose 10.4% to RMB710.0 million, mainly from fair value gains, government grants, and VAT deductions.

• Selling and distribution expenses up 33.3% to RMB1,619.6 million; administrative expenses up 23.7% to RMB1,118.6 million.

• R&D costs increased 22.5% to RMB1,404.5 million, reflecting investment in new products and technologies.

• Finance costs rose 28.4% to RMB46.2 million due to higher borrowings.

• Income tax expense increased 119.5% to RMB682.8 million, reflecting higher profits.

• Cash and cash equivalents decreased 23.9% to RMB5,991.4 million.

• Net cash inflow from operations was RMB5,989.8 million; net cash outflow from investing activities was RMB6,983.6 million.

Outlook and guidance

• Management remains cautiously optimistic for 2026, expecting steady industry growth supported by decarbonization, government policies, and consumer demand for smart mobility.

• Future growth to be driven by stable core demand, expansion in high-growth segments, overseas market development, and battery/aftersales ecosystem.

• Continued investment planned in R&D, battery tech, intelligent connectivity, and manufacturing efficiency.