Revenue and Sales Performance - Revenue for the first half of 2024 was RMB 14,413.8 million, a decrease of 15.4% compared to the same period in 2023, primarily due to macroeconomic uncertainties and temporary weak market demand[8] - Total sales of electric two-wheelers decreased from 8,210,700 units in the first half of 2023 to 6,382,600 units in the first half of 2024, with a gradual recovery in sales observed in May and June 2024[8] - Sales of electric bicycles accounted for 43.3% of total revenue, generating RMB 6,239.4 million, while electric scooters contributed 24.6% with RMB 3,546.6 million in revenue[10] - Battery and charger sales contributed 28.2% of total revenue, amounting to RMB 4,065.3 million, with battery sales alone reaching RMB 6,714.6 million[10] - Total segment revenue for electric two-wheelers and related accessories decreased from RMB 17,041.1 million in H1 2023 to RMB 14,413.8 million in H1 2024, a decline of 15.4%[12] - Revenue for the first half of 2024 was RMB 14,413.8 million, a decrease of 15.4% compared to RMB 17,041.1 million in the same period of 2023[53] - Revenue from electric bicycles decreased to RMB 6,239,374 thousand in H1 2024 from RMB 7,639,514 thousand in H1 2023, a decline of 18.3%[71] - Revenue from electric scooters decreased to RMB 3,546,576 thousand in H1 2024 from RMB 4,577,196 thousand in H1 2023, a decline of 22.5%[71] - Revenue from batteries and chargers decreased to RMB 4,065,296 thousand in H1 2024 from RMB 4,498,171 thousand in H1 2023, a decline of 9.6%[71] - Revenue from electric two-wheeler parts increased to RMB 562,556 thousand in H1 2024 from RMB 326,211 thousand in H1 2023, an increase of 72.5%[71] - Total segment revenue for electric two-wheelers and related accessories was RMB 14,205,169 thousand in H1 2024, down from RMB 16,988,740 thousand in H1 2023[74] - Total segment revenue for batteries and electric drives was RMB 2,526,456 thousand in H1 2024, up from RMB 1,928,281 thousand in H1 2023[74] Gross Profit and Margin - Gross margin improved from 16.9% in the first half of 2023 to 18.0% in the first half of 2024, driven by an optimized product mix and premium pricing for battery and electric drive products[8] - Gross profit decreased by 9.8% from RMB 2,874.1 million in H1 2023 to RMB 2,593.8 million in H1 2024, with gross margin improving slightly from 16.9% to 18.0% due to product mix optimization and price increases for batteries and electric drive products[14] - Gross profit for the first half of 2024 was RMB 2,593.8 million, down 9.8% from RMB 2,874.1 million in the first half of 2023[53] - Gross profit for electric two-wheelers and related accessories was RMB 2,264,028 thousand in H1 2024, down from RMB 2,687,793 thousand in H1 2023[74] - Gross profit for batteries and electric drives was RMB 374,470 thousand in H1 2024, up from RMB 192,883 thousand in H1 2023[74] Net Profit and Earnings - Net profit decreased by 12.9% from RMB 1,186.8 million in H1 2023 to RMB 1,033.9 million in H1 2024[16] - Net profit attributable to the company's owners for the first half of 2024 was RMB 1,033.9 million, a decrease of 12.9% compared to RMB 1,187.6 million in the same period of 2023[53] - Basic earnings per share for the first half of 2024 were RMB 34.5 cents, down from RMB 39.9 cents in the first half of 2023[53] - Net profit attributable to owners of the company was RMB 1,033,866 thousand in H1 2024, down from RMB 1,187,643 thousand in H1 2023[82] - Basic earnings per share decreased to RMB 34.5 cents in H1 2024 from RMB 39.9 cents in H1 2023[82] - Net profit attributable to the company's owners decreased to RMB 1,033,866 thousand in 2024 from RMB 1,187,643 thousand in 2023, representing a decline[85] - Diluted earnings per share decreased to 34.4 RMB cents per share in 2024 from 39.5 RMB cents per share in 2023[85] Cash Flow and Financial Position - Cash and cash equivalents decreased by 10.7% from RMB 7,913.8 million as of December 31, 2023, to RMB 7,067.6 million as of June 30, 2024, primarily due to net cash outflows from operating and investing activities[17] - Operating cash flow for the six months ended June 30, 2024, was a net outflow of RMB 696.503 million, compared to a net inflow of RMB 2.5728 billion in the same period in 2023[64] - Net cash used in investing activities for the six months ended June 30, 2024, was RMB 1.0867 billion, primarily due to the purchase of property, plant, and equipment amounting to RMB 815.315 million[64] - Net cash from financing activities for the six months ended June 30, 2024, was RMB 925.445 million, driven by proceeds from borrowings of RMB 1.3095 billion[64] - Cash and cash equivalents decreased by RMB 857.78 million during the six months ended June 30, 2024, ending at RMB 7.0676 billion[64] - The company paid dividends of RMB 1.3161 billion during the six months ended June 30, 2024[61] - The company repurchased shares worth RMB 13.329 million under the share award plan during the six months ended June 30, 2024[61] - The company acquired a subsidiary, resulting in a payment of RMB 209.482 million, net of cash acquired, during the six months ended June 30, 2024[64] - Interest income from bank deposits for the six months ended June 30, 2024, was RMB 117.531 million[64] - The company repaid borrowings of RMB 268.095 million during the six months ended June 30, 2024[64] - The company's cash and cash equivalents decreased to RMB 7,067,644 thousand as of June 30, 2024, from RMB 7,913,807 thousand as of December 31, 2023[105] Inventory and Asset Management - Inventory increased by 73.0% from RMB 955.4 million as of December 31, 2023, to RMB 1,652.6 million as of June 30, 2024, driven by increased battery inventory reserves and rising lead prices[20] - Total inventory as of June 30, 2024, was RMB 1,652,566 thousand, with raw materials accounting for RMB 950,156 thousand[87] - Accounts receivable increased to RMB 798,553 thousand in 2024 from RMB 545,941 thousand in 2023, with 94.2% of receivables aged within six months[88][89] - Total accounts payable and notes payable decreased to RMB 11,951,945 thousand in 2024 from RMB 13,672,198 thousand in 2023[90] - The company's trade and other receivables increased to RMB 798,553 thousand as of June 30, 2024, from RMB 545,941 thousand as of December 31, 2023[106] - The company's trade and other payables decreased to RMB 11,951,945 thousand as of June 30, 2024, from RMB 13,672,198 thousand as of December 31, 2023[108] Shareholder Equity and Share-Based Compensation - The company's total issued shares as of June 30, 2024, are 3,063,800,000 shares[26][28] - Dong Jingui holds 1,399,398,084 shares through Dawei Investment Limited, representing a significant portion of the company's equity[26] - Qian Jinghong holds 515,370,859 shares through Fangyuan Investment Limited, contributing to the company's equity structure[26] - The company granted 33,550,000 share options to 263 employees on January 17, 2023, under the 2016 Share Option Plan[35] - The share options granted have a vesting schedule tied to the company's financial performance, with 30% vesting after the 2023 annual results, 30% after the 2024 annual results, and 40% after the 2025 annual results[35] - The performance targets for the share options require a 20% growth in consolidated revenue and net profit for 2023, 44% for 2024, and 73% for 2025, compared to the 2022 baseline[35] - The company's five highest-paid individuals (excluding directors and senior management) each earned RMB 1,020,000 in 2023[31] - The company's share price at the time of the option grant on January 17, 2023, was HKD 16.14 per share[35] - The company's 2016 Share Option Plan was approved by the Hong Kong Stock Exchange on May 18, 2016, allowing the issuance of shares upon the exercise of options[35] - The company has established a performance evaluation system for employees to determine the vesting of share options based on individual performance targets[36] - The maximum number of shares available for grant under the 2016 Share Option Plan was 266,450,000 shares as of January 1, 2024[37] - The 2016 Share Option Plan terminated on June 17, 2024, and no further options can be granted under this plan after termination[37] - The 2024 Share Option Plan was conditionally approved by shareholders on June 17, 2024, with a maximum of 153,190,000 shares available for grant, representing 5% of the total issued shares as of the approval date[37] - No options were granted, exercised, canceled, lapsed, or forfeited under the 2024 Share Option Plan from its adoption date to June 30, 2024[39] - The total number of options available for grant under the 2024 Share Option Plan as of June 30, 2024, was 153,190,000[39] - The First Share Award Plan was terminated on June 17, 2024, and no further awards can be granted under this plan after termination[40] - The second and third share incentive plans were adopted on June 6, 2019, and will terminate on June 17, 2024, after which no further awards can be granted under these plans[41] - The fourth share incentive plan was adopted on July 23, 2019, and was amended on June 17, 2024, to allow the purchase of existing shares at market price for employee awards[42] - As of January 1, 2024, 70,678,139 shares were available for issuance under the share incentive plans, with 4,764,539 shares under the first plan (0.16% of issued share capital) and 65,913,600 shares under the fourth plan (2.15% of issued share capital)[43] - As of June 30, 2024, 59,642,339 shares were available for issuance under the share incentive plans, with 3,614,539 shares under the first plan (0.12% of issued share capital) and 56,027,800 shares under the fourth plan (1.83% of issued share capital)[44] - The company repurchased 1,112,000 shares under the share award plan in 2024, compared to none in 2023[94] - Outstanding restricted share units decreased to 17,338,000 in 2024 from 31,863,000 in 2023, with a weighted average fair value of RMB 5.68 per unit[96] - The company's share-based payment expenses for the six months ended June 30, 2024, amounted to RMB -46,847 thousand, compared to RMB 92,448 thousand in the same period in 2023, primarily due to the reversal of RMB 62,638 thousand in share-based compensation expenses as the performance conditions for the awards were not expected to be met[100] Regulatory and Market Challenges - The company remains the market leader in the electric two-wheeler industry by market share, despite regulatory changes and market challenges[8] - New regulations introduced in May 2024 focused on battery design and manufacturing, including aspects like overcharging, over-discharging, and thermal runaway, which temporarily disrupted product development[8] Research and Development and Overseas Expansion - The company plans to continue investing in R&D for new technologies in core components and expand its overseas market presence to promote the "Yadea" brand globally[8] - The net proceeds from the share placement in 2022 amounted to approximately HKD 857.6 million (equivalent to RMB 727.8 million), intended for overseas business expansion through R&D centers, factories, distribution networks, and potential acquisitions[47][48] - The company expects to fully utilize the net proceeds from the 2022 share placement by December 31, 2025[49] Subsidiary Acquisitions and Investments - The company's subsidiary acquired 100% equity of Wuxi Lingbo Electronic Technology Co., Ltd. for a total cash consideration of approximately RMB 351.5 million on April 17, 2024[47] - The company's subsidiary, Zhejiang Huayu Sodium Battery New Energy Technology Co., Ltd., acquired 100% equity of Wuxi Lingbo Electronic Technology Co., Ltd. for a total cash consideration of RMB 351,500 thousand on April 17, 2024[102] - The identifiable net assets acquired from Lingbo amounted to RMB 304,394 thousand, including intangible assets of RMB 114,833 thousand, primarily consisting of customer relationships valued at RMB 92,900 thousand and patents valued at RMB 20,820 thousand[103] Financial Assets and Liabilities - The fair value of financial assets at fair value through profit or loss decreased by 6.3% from RMB 2,789.8 million as of December 31, 2023, to RMB 2,613.9 million as of June 30, 2024, due to redemptions of wealth management products and structured deposits[18] - The company's financial assets measured at fair value through profit or loss decreased to RMB 2,613,941 thousand as of June 30, 2024, from RMB 2,789,800 thousand as of December 31, 2023[104] - The company's financial liabilities measured at amortized cost increased to RMB 16,672,418 thousand as of June 30, 2024, from RMB 16,202,059 thousand as of December 31, 2023, primarily due to an increase in borrowings to RMB 1,274,770 thousand from RMB 267,257 thousand[108] - The company's total financial assets measured at fair value as of June 30, 2024, amounted to RMB 2,626,927 thousand, including RMB 2,439,273 thousand in wealth management products and structured deposits and RMB 82,248 thousand in unlisted equity investments[110][111] Capital Expenditures and Commitments - The company acquired property, plant, and equipment worth RMB 679,077 thousand in 2024, a significant increase from RMB 363,763 thousand in 2023[86] - The company's capital commitments for property, plant, and equipment as of June 30, 2024, amounted to RMB 758,645 thousand, a decrease from RMB 815,006 thousand as of December 31, 2023[101] Employee Costs and Compensation - Total employee costs decreased from RMB 1,426.0 million in H1 2023 to RMB 1,074.8 million in H1 2024, with the number of employees decreasing from 12,338 to 12,008[22] - Employee share-based compensation expenses amounted to RMB 92.448 million for the six months ended June 30, 2024[61] Related Party Transactions - No significant related party transactions or balances were reported for the six months ended June 30, 2024, and June 30, 2023, as well as for the periods ended June 30, 2024, and December 31, 2023[117] Asset and Liability Overview - Total assets as of June 30, 2024, were RMB 25,707.6 million, a slight increase from RMB 25,660.1 million as of December 31, 2023[58] - Total liabilities as of June 30, 2024, were RMB 17,572.7 million, compared to RMB 17,258.9 million as of December 31, 2023[60] - The company's equity attributable to owners as of June 30, 2024, was RMB 8,134.7 million, down from RMB 8,401.0 million as of December 31, 2023[60] - The asset-liability ratio increased from 9.9% as of December 31, 2023, to 22.3% as of June 30, 2024, mainly due to increased borrowings[21] - The company's assets at the beginning of the period were RMB 80,924 thousand, an increase from RMB 66,444 thousand in the same period last year[116] - Additions to assets during the period amounted to RMB 1,677 thousand, slightly lower than the RMB 1,786 thousand added in the previous year[116] - The company's assets at the end of the

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company reported a significant decline in sales in the short term but is expected to have a strong long-term development potential. The revenue for the first half of 2024 was 14.414 billion yuan, down 15.4% year-on-year, with a net profit of 1.034 billion yuan, down 12.9% year-on-year. The electric two-wheeler segment saw a revenue drop of 19.9% year-on-year, while the components segment experienced a revenue increase of 72.5% year-on-year [3][4]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a net profit margin of 7.17%, an increase of 0.20 percentage points year-on-year, and a gross margin of 18.00%, up 1.13 percentage points year-on-year. The sales expense ratio was 4.20%, the management expense ratio was 2.91%, and the financial expense ratio was -0.84% [4]. - The company’s revenue forecast for 2024 is 33.069 billion yuan, reflecting a year-on-year decrease of 4.9%, with net profits expected to be 2.550 billion yuan, a decrease of 3.4% [5][6]. Business Segments - The electric two-wheeler segment is projected to generate sales of 22.153 billion yuan in 2024, down 9.9% year-on-year, while the battery and charger segment is expected to see a revenue increase of 5.0% year-on-year [6]. - The components segment is forecasted to grow significantly, with sales expected to reach 1.203 billion yuan in 2024, reflecting a growth rate of 30.0% year-on-year [6]. Valuation and Forecast - The company is valued at a price-to-earnings (PE) ratio of 14-15 times for 2024, with a reasonable value range estimated between 11.47 and 12.29 yuan, which translates to 12.62 to 13.52 Hong Kong dollars [4][5]. - The expected net profits for 2024-2026 are projected to be 2.550 billion, 3.264 billion, and 3.792 billion yuan, respectively, with growth rates of -3.4%, +28.0%, and +16.2% [4][5].

Investment Rating - The report maintains a "Strong Buy" rating for Yadea Holdings (01585.HK) with a target price of HKD 13, while the current price is HKD 10.8 [1]. Core Views - The company's revenue for the first half of 2024 (24H1) was HKD 14.41 billion, a decrease of 15.4% year-on-year, with a net profit attributable to shareholders of HKD 1.03 billion, down 13.0% year-on-year [1]. - The decline in sales is attributed to stricter industry regulations and weakened demand, leading to inventory destocking among distributors, resulting in a 22% year-on-year drop in sales volume to 6.38 million units [1]. - Despite the sales decline, the gross profit margin improved by 1.1 percentage points year-on-year to 18%, driven by a shift towards higher-end products [1]. - The report anticipates that as regulatory policies stabilize, leading companies like Yadea will benefit from industry consolidation and improved sales performance [1]. - The company is expected to see a gradual recovery in sales, with net profit forecasts adjusted to HKD 2.52 billion, HKD 3.02 billion, and HKD 3.60 billion for 2024, 2025, and 2026 respectively [1]. Financial Summary - For 2024, the expected revenue is HKD 31.16 billion, reflecting a 10% decrease, while the net profit is projected at HKD 2.52 billion, a 5% decrease [2]. - The earnings per share (EPS) for 2024 is estimated at HKD 0.86, with a price-to-earnings (P/E) ratio of 12.2 [2]. - The company’s total assets are projected to reach HKD 27.33 billion by 2024, with a debt-to-asset ratio of 60.7% [6].

Investment Rating - The investment rating for Yadea Holdings is "Buy" (maintained) [1] Core Views - The performance for the first half of 2024 is generally in line with expectations, with improvements in gross margin on a sequential and year-over-year basis [3][4] - The company faced a decline in sales volume due to factors such as national inspections and inventory destocking by distributors, leading to a decrease in electric bicycle and scooter sales [3] - Despite the sales decline, the average revenue per unit improved, indicating a positive trend in pricing [3] Summary by Sections Revenue and Profitability - In H1 2024, Yadea achieved total revenue of 14.414 billion yuan, down 15.42% year-over-year and 18.67% sequentially [3] - The net profit attributable to the parent company was 1.034 billion yuan, reflecting a decrease of 12.88% year-over-year and 28.86% sequentially [3] - The gross margin for H1 2024 improved to 18.00%, up 1.13 percentage points year-over-year and 1.00 percentage point sequentially [3] Sales Performance - Electric bicycle sales reached 4.48 million units, down 19.07% year-over-year and 25.56% sequentially [3] - Electric scooter sales totaled 1.90 million units, down 28.89% year-over-year and 16.97% sequentially [3] - The average revenue per unit for bicycles was 1,533 yuan, up 3.05% year-over-year and 3.00% sequentially [3] Cost and Expenses - The revenue from battery and charger business in H1 2024 was 4.065 billion yuan, down 9.62% year-over-year and 14.44% sequentially [3] - The overall expense ratio slightly decreased, with sales, management, R&D, and financial expense ratios at 4.20%, 2.92%, 3.41%, and 0.14% respectively [3] Future Earnings Forecast - The earnings forecast for 2024, 2025, and 2026 has been revised downwards, with net profits projected at 2.64 billion, 3.44 billion, and 4.00 billion yuan respectively [4] - The corresponding P/E ratios are expected to be 14, 11, and 9 times [4]

Investment Rating - The investment rating for Yadea Holdings is "Buy" (maintained) [5] Core Views - In the first half of 2024, Yadea Holdings experienced short-term revenue pressure due to stricter industry regulations and the pending implementation of new national standards. However, core profitability showed growth despite fluctuations caused by foreign exchange and government subsidies. Looking ahead, the gradual rollout of the trade-in policy is expected to boost industry demand, coupled with an accelerated market share increase for the company under the stringent regulatory environment, indicating an imminent operational turning point [2][6]. Summary by Sections Financial Performance - For H1 2024, the company reported a revenue of 144.14 billion yuan, a year-on-year decrease of 15.4%. Gross profit fell by 9.8% to 25.94 billion yuan, and net profit attributable to shareholders decreased by 12.9% to 10.34 billion yuan, with basic earnings per share down 13.5% to 0.345 yuan [6][9]. - The company faced significant operational pressure due to comprehensive regulatory tightening and the adjustment of new national standards, leading to a 22% year-on-year decline in sales volume to 6.38 million units. The average selling price remained stable, while sales revenue from complete vehicles dropped by 20% to 9.8 billion yuan. Battery and charger revenue decreased by 9.6% to 4.1 billion yuan, while revenue from electric two-wheeler components surged by 72.5% to 600 million yuan [6][9]. Profitability and Cost Management - The gross margin improved by 1.1 percentage points year-on-year to 18.0%, primarily due to optimized product mix and increased margins in battery and electric drive products, which saw a revenue increase of 31%. The operating profit margin also improved by 1.4 percentage points to 7.3% after excluding three major expenses [6][10]. - The net profit margin attributable to shareholders increased slightly by 0.2 percentage points to 7.2%, despite fluctuations from government subsidies and foreign exchange losses [6][10]. Market Position and Future Outlook - The company is expected to see an accelerated increase in market share in the second half of the year, driven by the new national standards that raise safety and regulatory requirements for complete vehicles. The introduction of a whitelist system for manufacturers will favor leading companies like Yadea, which has three entities listed on the initial whitelist [6][10]. - Revenue projections for 2024-2026 are estimated at 347.6 billion, 447.6 billion, and 542.0 billion yuan, respectively, with year-on-year growth rates of 0.0%, 28.8%, and 21.1%. Net profit attributable to shareholders is projected to be 27.5 billion, 36.8 billion, and 46.3 billion yuan, with corresponding growth rates of 4.2%, 33.7%, and 25.9% [6][7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is currently facing pressure on performance due to a decline in sales volume but an increase in average selling prices. The new industry regulations are expected to improve performance in the future [2][3] - The company has a strong position in the industry, benefiting from the recent government regulations aimed at standardizing the electric two-wheeler market [3] Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 14.41 billion yuan, a year-on-year decrease of 15.4%. The net profit attributable to shareholders was 1.03 billion yuan, down 12.9% year-on-year [2] - The company sold 6.383 million electric bicycles and scooters, a decline of 22.3% year-on-year, while the average price increased by 3.0% to 1,533.2 yuan per unit [2] Business Segments - The electric bicycle segment generated revenue of 6.24 billion yuan, down 18.3% year-on-year, with sales of 4.483 million units, a decrease of 19.1%. The average price was 1,391.9 yuan per unit, up 0.9% [3] - The electric scooter segment achieved revenue of 3.55 billion yuan, down 22.5% year-on-year, with sales of 1.9 million units, a decline of 28.9%. The average price increased by 9.0% to 1,866.7 yuan per unit [3] Market Position - The company is well-positioned to benefit from the new industry standards, having secured three out of six spots in the first batch of companies meeting the new regulatory conditions [3] - The company's stock has underperformed relative to the Hang Seng Index, with a decline of 25.9% over the past 12 months [3] Profitability and Cost Management - The gross margin for H1 2024 was 18.0%, an increase of 1.1 percentage points year-on-year, attributed to product mix optimization and rising prices of batteries and electric drive products [3] - The company has effectively controlled its expenses, with sales, management, and R&D expense ratios at 4.2%, 2.9%, and 3.4%, respectively [3] Future Outlook - Revenue forecasts for 2024-2026 are 32.557 billion yuan, 37.583 billion yuan, and 43.465 billion yuan, with year-on-year changes of -6.35%, +15.44%, and +15.65% respectively. Net profit forecasts are 2.635 billion yuan, 3.228 billion yuan, and 3.817 billion yuan, with year-on-year changes of -0.20%, +22.51%, and +18.23% respectively [3][5]

Financial Performance - Revenue decreased by approximately 15.4% to RMB 14,413.8 million compared to the same period in 2023[3] - Gross profit decreased by approximately 9.8% to RMB 2,593.8 million compared to the same period in 2023[3] - Profit attributable to shareholders decreased by approximately 12.9% to RMB 1,033.9 million compared to the same period in 2023[3] - Basic earnings per share decreased by approximately 13.5% to RMB 34.5 cents compared to the same period in 2023[3] - Operating profit was RMB 1,327.96 million, a decrease from RMB 1,469.31 million in the same period last year[5] - Total comprehensive income for the period was RMB 1,047.34 million, compared to RMB 1,286.49 million in the same period last year[8] - The company reported a net profit margin of approximately 7.2% for the reporting period[5] - Other income decreased to RMB 295,576,000 in the first half of 2024 from RMB 348,004,000 in 2023, a reduction of approximately 15.1%[35] - The company's net profit attributable to owners was RMB 1,033,866,000 for the six months ended June 30, 2024, compared to RMB 1,187,643,000 in 2023, a decline of approximately 12.9%[41] Revenue Breakdown - Revenue from electric bicycles was RMB 6,239,374 thousand, down 18.3% from RMB 7,639,514 thousand in 2023[27] - Revenue from electric scooters decreased by 22.5% to RMB 3,546,576 thousand from RMB 4,577,196 thousand in 2023[27] - Revenue from batteries and chargers was RMB 4,065,296 thousand, a decline of 9.6% compared to RMB 4,498,171 thousand in 2023[27] - Total revenue for electric two-wheelers and related components reached RMB 14,205,169,000 for the six months ended June 30, 2024, compared to RMB 16,988,740,000 for the same period in 2023, representing a decrease of approximately 10.5%[32] - The company recorded a total revenue of RMB 9,785.9 million from electric bicycles and scooters, accounting for 67.9% of total revenue in the first half of 2024[82] Expenses and Costs - Research and development expenses were RMB 491.11 million, down from RMB 554.82 million in the previous year[5] - The total cost of sales, selling and distribution expenses, administrative expenses, and research and development expenses amounted to RMB 13,337,116,000 for the six months ended June 30, 2024, compared to RMB 16,014,035,000 in 2023, a decrease of approximately 16.7%[36] - The sales cost decreased by approximately 16.6% to RMB 11,820.0 million in the first half of 2024, consistent with the decline in revenue[86] Cash Flow and Assets - Cash and cash equivalents were reported at RMB 7,067,644 thousand, down from RMB 7,913,807 thousand[10] - Operating cash flow showed a net outflow of RMB 696,503 thousand compared to an inflow of RMB 2,572,802 thousand in the same period last year[14] - Investment activities resulted in a net cash outflow of RMB 1,086,722 thousand, compared to RMB 260,442 thousand in the previous year[16] - The net cash flow from financing activities was RMB 925,445 thousand, a significant improvement from a net cash outflow of RMB 924,874 thousand in the previous year[27] - As of June 30, 2024, total assets amounted to RMB 25,707,624 thousand, a slight increase from RMB 25,660,098 thousand in the previous year[10] Liabilities and Equity - Current liabilities increased to RMB 16,773,601 thousand from RMB 16,396,290 thousand, primarily due to a rise in borrowings to RMB 1,274,770 thousand from RMB 267,257 thousand[12] - The total liabilities rose to RMB 17,572,666 thousand from RMB 17,258,892 thousand, indicating a growing leverage position[12] - The net asset value decreased to RMB 8,134,958 thousand from RMB 8,401,206 thousand year-over-year[12] - The debt-to-asset ratio increased to 22.3% as of June 30, 2024, from 9.9% as of December 31, 2023, mainly due to increased borrowings[98] Inventory and Receivables - The company reported a significant increase in accounts receivable, rising to RMB 798,553 thousand from RMB 545,941 thousand[10] - As of June 30, 2024, accounts receivable reached RMB 818,507 thousand, up from RMB 554,702 thousand as of December 31, 2023, indicating a rise of 47.7%[49] - Inventory increased by approximately 73.0% from RMB 955.4 million as of December 31, 2023, to RMB 1,652.6 million as of June 30, 2024, primarily due to increased battery inventory to meet seasonal demand[97] Corporate Actions and Governance - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous period[113] - The company has fully complied with the corporate governance code during the reporting period[111] - The audit committee, consisting of four independent non-executive directors, reviewed the accounting principles and financial reporting matters during the reporting period[114] - The company repurchased 1,112,000 shares under the share incentive plan during the six months ended June 30, 2024[55] Future Outlook and Strategy - The company plans to continue investing in the development of new technologies for core components and expanding into overseas markets to promote the "Yadea" brand globally[79] - New regulations regarding battery design and manufacturing are expected to create a favorable environment for the company, potentially accelerating industry repositioning and growth[79]

雅迪控股 原文 20240710_ 2024年07月11日13:27 发言人 00:00 报告，然后雅婷其实最近整个股价回调比较多，我们觉得主要的原因还是上半年整个销售有一 定的承压，所以说在这个界面比较弱的情况下，股价也是有一个比较明显的一个回调。但是我 们，认为从目前的，整个股价位置，或者说从目前的估值来看，雅迪已经是处于一个，最近的 这个几年来看，一个评估的一个底部，所以说我们，也是在近期发了这个底部，发了这个养鱼 的这个深度，也是想看好后续的这个公司后续的行情然后这次汇报我们主要是从三个方方面， 去汇报一下雅迪这个公司。第一个就是可能大家，比较关注的行业的三个问题。第一个就是这 个行业规模未来，到底去怎么去增长。第二个的话就是，公司的这个份额和未来，还能够或者 说行业的这个集中度未来还能不能够提升。然后第三个的话就是利润率的这个角度转到国际行 动之后，这个行业利润率还有没有进一步向上的空间。 发言人 01:22 然后第二个维度的话就是从公司的这个维度，也是分三个方向。第一个就是从管理市场来看， 公司的这个份额这个天花板在哪里。然后第二个的话，公司的这个产业链一体化，能够带来多 大的一个利润率的提升。然 ...

Investment Rating - The report initiates coverage on Yadea Holdings (01585.HK) with a "Buy" investment rating [7]. Core Views - The electric two-wheeler industry is expected to maintain stable growth due to rigid demand and expanding consumer base, with Yadea positioned as a leading player benefiting from regulatory changes and market dynamics [3][4]. - Yadea is expanding its overseas market presence, targeting high-growth regions such as Southeast Asia, Europe, and South America, which is anticipated to enhance its growth potential [2][3]. - The company is focusing on vertical integration of its supply chain, particularly in battery technology, which is expected to improve production efficiency and reduce costs [3][4]. Summary by Sections Company Overview - Yadea Holdings has been a leader in the electric two-wheeler industry for over 20 years, consistently ranking first in global sales since 2017 [4][14]. - The company has a robust distribution network in China, with over 40,000 sales points and more than 4,000 distributors [14][15]. - Yadea's revenue and profit have shown steady growth, with a CAGR of 21.26% for revenue and 31.25% for net profit from 2013 to 2023 [4][18]. Market Performance - The electric two-wheeler market is experiencing a "Matthew Effect," where leading companies are gaining market share at the expense of smaller players due to stricter regulations [3][31]. - Yadea's sales volume reached 16.52 million units in 2023, with a focus on high-end products driving revenue growth [4][19]. Financial Forecasts - Revenue projections for Yadea are estimated at 376 billion, 422 billion, and 482 billion CNY for 2024, 2025, and 2026, respectively, with corresponding net profits of 29 billion, 32 billion, and 37 billion CNY [3][4]. - The company is expected to maintain a stable profit margin, with a projected net profit margin of 7.59% in 2023 [22][24]. Industry Dynamics - The electric two-wheeler industry is characterized by a shift towards compliance and quality, with new regulations expected to benefit established players like Yadea [31][32]. - The demand for electric two-wheelers is driven by urbanization, environmental concerns, and the growth of the delivery service industry, which heavily relies on electric bikes [34].

Summary of Conference Call on Yadea Holdings and the Electric Two-Wheeler Industry Company Overview - Yadea Holdings is a leading company in the electric two-wheeler industry, with a long history of participation and outstanding performance across multiple dimensions, including early licensing, overseas market involvement, and active supply chain management [1] - From 2017 to 2023, Yadea's revenue and performance compound annual growth rates (CAGR) reached 28% and 37%, respectively, with net profit levels improving to 7-8% due to scale expansion and raw material cost fluctuations [1][6] Industry Status and Domestic Market - The electric two-wheeler industry primarily addresses short and medium-distance travel needs, with domestic sales being the main market, accounting for a significant portion of total sales [2] - Domestic sales volume increased from 30 million units in 2017 to 50 million units, driven by commercial demand (approximately 20% of total sales) and residential demand [2][5] Domestic Market Core Logic and Structure Optimization - The industry's concentration has accelerated, with the CR3 (market share of the top three companies) rising from around 20% in 2016 to over 60% in 2023, with Yadea holding a 30% market share [3][9] - Future concentration is expected to continue, with a widening gap between leading companies and smaller brands, as Yadea enhances its operational capabilities across sales channels, supply chains, and product development [3][10] Overseas Market Development and Potential - Southeast Asia and India have large populations and strong purchasing power, transitioning from fuel to electric vehicles, with fuel motorcycle sales reaching 30-40 million units in 2022 [4][17] - The European and American markets primarily demand e-bikes, with EU sales around 5 million units in 2023 and expected CAGR exceeding 20% [4][18] Investment Recommendations - Yadea's revenue is projected to maintain a CAGR of 15% from 2024 to 2026, with profitability improving faster than revenue growth. The current valuation is approximately ten times earnings, indicating it is undervalued, thus a buy recommendation is suggested [5][18] Additional Insights - Short-term sales pressures are noted due to safety regulations and standard adjustments, impacting the industry's performance [5][14] - The introduction of new national standards for lithium batteries is expected to lead to a replacement wave for existing electric vehicles, affecting production costs and market dynamics [15][16] - The electric two-wheeler industry is compared to the white goods industry, suggesting that leading companies can replicate successful strategies to enhance their market positions [11][12][13] This summary encapsulates the key points discussed in the conference call regarding Yadea Holdings and the electric two-wheeler industry, highlighting the company's performance, market dynamics, and future outlook.