Yixin Group (2858) H1 2024 earnings summary

Executive summary

• Celebrated 10th anniversary as a pioneer in China's auto finance ecosystem, with business spanning new/used cars, NEVs, finance, and FinTech.

• Revenue rose 57% year-over-year to RMB4.47 billion for H1 2024, driven by strong growth in SaaS/FinTech and NEV financing.

• Net profit increased 54% year-over-year to RMB410 million, with adjusted net profit up 23% to RMB507 million.

• Total financed automobile transactions grew 5% to 329,000, with NEV financing transactions up 78% year-over-year.

• Asset management scale reached RMB99.6 billion, with resilient asset quality (90+ days past due ratio at 1.86%).

Financial highlights

• Operating income for H1 2024 was RMB4.47 billion, up 57% year-over-year.

• Gross profit increased 50% year-over-year to RMB2.13 billion; gross margin was 48%.

• Adjusted operating profit was RMB683 million, up 58% year-over-year.

• SaaS (FinTech) revenue reached RMB835 million, up 867% year-over-year.

• Value-added services revenue rose 18% year-over-year to RMB123 million.

Outlook and guidance

• Confident in achieving RMB20 billion FinTech transaction target for 2024, with strong partner pipeline and market demand.

• Expects continued moderate growth in auto sales and NEV/FinTech segments in H2 2024 as policy effects materialize.

• Strategic focus on expanding overseas, especially in Southeast Asia, leveraging industry know-how and technology.