Yixin Group (2858) H2 2024 earnings summary

Executive summary

• Revenue grew 48% year-on-year to RMB 9.89 billion, with all segments increasing revenue and profitability significantly; adjusted net profit surpassed RMB 1 billion for the first time, up 19% year-on-year.

• Fintech (SaaS) business was a key growth driver, with transaction scale up 107% and revenue up 290% year-on-year.

• Used vehicle financing transactions rose 25% year-on-year, while new energy vehicle financing surged 44%-51%.

• Asset quality remained resilient, with 90+ days past due ratio at 1.86% and finance receivables up 18% to RMB 28.1 billion.

• Final and special dividends of HK6.5 cents per share each were proposed, totaling HK$878.5 million.

Financial highlights

• Operating revenue reached RMB 9.89 billion in 2024, a 48% year-on-year increase, with gross profit up 43% to RMB 4.64 billion.

• Net profit hit a record RMB 810 million, with adjusted net profit reaching RMB 1.08 billion and profitability at a three-year high.

• Asset management scale grew to RMB 1,841 billion, up 39% from the previous year.

• Value-added services revenue rose 11% to RMB 249 million.

• Cost of revenues increased 53% to RMB 5.25 billion, mainly due to higher commissions and funding costs.

Outlook and guidance

• 2025 revenue projected to grow 15%-20%, reaching RMB 11.5-12 billion; adjusted net profit expected at RMB 1.3 billion.

• Fintech transaction volume target for 2025 is RMB 35 billion, aiming for 70% growth.

• Management expects continued growth in automotive finance, driven by policy support, NEV adoption, and digital transformation.

• The Group will prioritize FinTech expansion, AI-driven innovation, and partnerships with financial institutions and automakers.

• Market leadership is expected to strengthen as the industry consolidates and consumer demand rebounds.