易鑫集团(02858) - 2025 - 中期业绩

Performance Highlights Financial Highlights The Group achieved strong financial growth in H1 2025, with total revenue up 22% to RMB 5.45 billion and net profit up 34% to RMB 549 million, notably driven by a 124% surge in SaaS service revenue Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 5,452,057 | 4,467,853 | 22% | | - Transaction Platform Business | 4,345,653 | 3,510,459 | 24% | | - Of which: SaaS Services | 1,873,371 | 834,561 | 124% | | - Proprietary Financing Business | 1,106,404 | 957,394 | 16% | | Gross Profit | 2,886,203 | 2,128,937 | 36% | | Operating Profit | 799,695 | 576,522 | 39% | | Net Profit | 548,678 | 409,676 | 34% | | Adjusted Net Profit | 648,206 | 507,477 | 28% | Operational Highlights In H1 2025, the Group's total auto financing transactions increased by 11% to 364 thousand units, with a significant 45% rise in used car financing driving growth, while new car financing declined by 19% Total Auto Financing Transactions (thousands of units) for the Six Months Ended June 30, 2025 | Category | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Auto Financing Transactions | 364 | 329 | 11% | | - New Cars | 142 | 175 | -19% | | - Used Cars | 222 | 154 | 45% | Chairman's Statement Chairman Zhang Xua'an noted robust growth for Yixin Group amidst a complex macroeconomic environment, driven by China's automotive industry transformation, with double-digit increases in revenue and net profit, rapid expansion of strategic fintech (SaaS) business to over 60 financial institutions, and planned launch of the next-generation AI model XinMM-AM1 - In H1 2025, the Group facilitated approximately 364 thousand auto financing transactions, a 10.7% YoY increase, with total financing volume reaching approximately RMB 32.7 billion, up 4.0% YoY[9] - Fintech (SaaS) business, a strategic focus, facilitated over RMB 15.3 billion in financing, a 58.2% YoY increase, with over 60 financial institutions partnering on the platform[10] - The Group accelerated investment in cutting-edge AI, preparing to launch the next-generation Agentic large model, XinMM-AM1, designed for auto finance within the year to significantly enhance operational efficiency and service quality[11] Key Performance Indicators for H1 2025 | Metric | Value | YoY Growth | | :--- | :--- | :--- | | Total Revenue | approx. RMB 5.5 billion | approx. 22.0% | | Net Profit | approx. RMB 549 million | approx. 33.9% | | Total Auto Finance Assets Under Management | approx. RMB 112.1 billion | - | | Overdue Rate (90+ days) | approx. 1.86% | - | Management Discussion and Analysis Macroeconomic and Industry Overview In H1 2025, China's economy grew 5.3% YoY, with the automotive sector, driven by electrification and intelligence, seeing new car sales up 13.0% and NEV penetration exceeding 50%, while the used car market grew only 0.5%, supported by government policies - China's GDP grew by 5.3% YoY in H1 2025, maintaining a steady economic recovery[13] - Total passenger vehicle sales increased by 8.2% YoY, with new car sales up 13.0% and used car transactions only marginally increasing by 0.5%[15][16] - New energy vehicle retail sales surged by 33.3% YoY, with penetration consistently exceeding 50% for several months[16] - The government introduced various policies to support the automotive industry, including "trade-in" subsidies, NEV promotion in rural areas, financial digitalization transformation, and export facilitation measures[19][20][21] Business Review Yixin Group achieved steady business growth and stable asset quality in H1 2025, strategically shifting focus to used car financing and SaaS services, with used car financing volume up 45% and SaaS revenue surging 124%, contributing 46.7% to total financing volume, while also advancing AI innovation Auto Financing Transactions Total auto financing transactions increased by 11% to 364 thousand and total financing volume by 4% to RMB 32.7 billion in the reporting period, driven by a 45% surge in used car financing to 61% of total transactions, offsetting a 19% decline in new car financing Auto Financing Transaction Details for H1 2025 | Category | Number of Financing Transactions (thousands) | YoY Change | Financing Volume (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Total | 364 | 11% | 32,703 | 4% | | New Cars | 142 | -19% | 14,482 | -17% | | Used Cars | 222 | 45% | 18,221 | 31% | | New Energy Vehicles | 93 | 34% | 9,501 | 34% | SaaS Services Fintech (SaaS) business maintained high growth in H1 2025, with revenue reaching RMB 1.9 billion (up 124.5%) and facilitated financing volume of RMB 15.3 billion (up 58.2%), increasing its contribution to total financing volume to 46.7%, while core customer average revenue grew 87% - SaaS service revenue increased by 124.5% YoY to RMB 1.9 billion, facilitating a total financing volume of RMB 15.3 billion, up 58.2% YoY[27] - The fintech platform collaborates with over 60 financial institutions, with core customers increasing to 15, contributing 98% of fintech business revenue[27][29] Technological Innovation and AI Implementation Yixin Group accelerated its AI strategy in H1 2025, becoming the first in the auto finance industry to fully deploy the DeepSeek framework and upgrading its vertical AI model, with AI agents deeply integrated across four strategic areas, and plans to launch the next-generation Agentic large model XinMM-AM1 - The Group became the first auto finance enterprise to fully localize the DeepSeek framework and plans to launch the next-generation Agentic large model, XinMM-AM1[30][31] - AI agents are deeply embedded in four strategic areas, with AI voice agents handling nearly 120 million calls and asset management doubling M1 recovery rates[31] Financial Review In H1 2025, the Group's total revenue grew 22% to RMB 5.45 billion, driven by SaaS and proprietary financing, with gross profit up 36% to RMB 2.89 billion and gross margin improving to 53%, while R&D expenses increased 60% and credit impairment losses rose 59%, resulting in a 34% net profit increase Non-IFRS Financial Measures To better reflect core operating performance, the company reported adjusted operating profit of RMB 908 million (up 33%) and adjusted net profit of RMB 648 million (up 28%) for the period, primarily excluding non-cash items like share-based compensation and intangible asset amortization Reconciliation of Operating Profit to Adjusted Operating Profit (RMB thousands) | Description | 2025 | 2024 | | :--- | :--- | :--- | | Operating Profit | 799,695 | 576,522 | | Add: Share-based compensation expenses | 58,764 | 26,020 | | Add: Amortization of intangible assets | 25,765 | 148,047 | | Other adjustments | 23,758 | (67,640) | | Adjusted Operating Profit | 907,982 | 682,949 | Reconciliation of Net Profit to Adjusted Net Profit (RMB thousands) | Description | 2025 | 2024 | | :--- | :--- | :--- | | Net Profit | 548,678 | 409,676 | | Add: Share-based compensation expenses | 54,096 | 21,742 | | Add: Amortization of intangible assets | 25,721 | 148,001 | | Other adjustments | 19,711 | (71,942) | | Adjusted Net Profit | 648,206 | 507,477 | Operating Performance Total revenue grew 22% to RMB 5.45 billion, primarily driven by a 124% increase in SaaS service revenue, leading to a 36% rise in gross profit and an improved gross margin of 53%, while R&D expenses increased 60% and credit impairment losses rose 59%, culminating in a 34% net profit growth - Total revenue increased by 22% YoY to RMB 5.452 billion, primarily driven by increased revenue from SaaS services (+124%) and guarantee services (+36%)[43][44][45] - Gross profit increased by 36% YoY to RMB 2.886 billion, with gross margin improving from 48% in the prior period to 53%[49] - Research and development expenses increased by 60% YoY to RMB 172 million, primarily due to increased R&D investment in the fintech team[59] - Credit impairment losses increased by 59% YoY to RMB 1.043 billion, mainly due to an expanded asset base, increased proportion of used car business, and higher provision coverage[60] Financial Position and Asset Quality As of June 30, 2025, the Group maintained a sound financial position with total assets of RMB 50.3 billion and total liabilities of RMB 34.1 billion, while net finance lease receivables slightly increased to RMB 28.6 billion and provision coverage improved to 3.36%, with the 90+ day overdue rate remaining stable at 1.86% due to robust risk management Balance Sheet Analysis As of June 30, 2025, the Group's net finance lease receivables increased 2% to RMB 28.6 billion, with expected credit loss provision coverage rising from 3.21% to 3.36%, and off-balance sheet loan balances subject to repurchase obligations growing to RMB 77.4 billion, with corresponding risk guarantee liabilities of RMB 2.6 billion Selected Consolidated Balance Sheet Items (RMB thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net finance lease receivables | 28,603,069 | 28,117,882 | 2% | | Cash and cash equivalents | 5,680,546 | 4,212,760 | 35% | | Total borrowings | 28,418,480 | 26,948,957 | 5% | | Total equity | 16,280,363 | 16,480,133 | -1% | - The provision coverage ratio for net finance lease receivables increased from 3.21% at the end of 2024 to 3.36%[70] - Off-balance sheet outstanding loan balances subject to repurchase obligations increased from RMB 73.9 billion to RMB 77.4 billion[72] Asset Quality and Risk Management The Group maintained resilient asset quality as of June 30, 2025, with 90+ day and 180+ day overdue rates stable at 1.86% and 1.35% respectively, demonstrating strong risk management capabilities through a comprehensive system encompassing data-driven credit assessment, post-lending management, and loss recovery Overdue Rates | Days Overdue | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 180+ days | 1.35% | 1.39% | | 90+ days | 1.86% | 1.86% | - The company implements a comprehensive risk management system, including automated preliminary assessment, manual assessment, post-lending monitoring, and collection procedures, to address credit risk[80][82][86] Liquidity and Capital Resources As of June 30, 2025, cash and cash equivalents increased to RMB 5.68 billion, with net cash inflow from operating activities significantly rising to RMB 1.54 billion, while total borrowings grew to RMB 28.4 billion through diversified channels, maintaining a healthy financial leverage with a liquidity ratio of 1.17 and a capital-to-debt ratio of 1.75 - Cash and cash equivalents increased to RMB 5.681 billion, with net cash generated from operating activities significantly increasing to RMB 1.536 billion YoY[88] - Total borrowings increased to RMB 28.4 billion, with diversified financing channels including asset-backed securities (ABS) and bank loans[89] Key Financial Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio (x) | 1.17 | 1.25 | | Debt Ratio | 55% | 55% | | Capital-to-Debt Ratio (x) | 1.75 | 1.64 | Other Disclosures Capital expenditures and total investments significantly decreased to RMB 29.28 million in the reporting period, while the fair value of the investment in Yusheng, a used car trading platform, remained stable at approximately RMB 2.57 billion, and full-time employees increased to 4,539 as of June 30, 2025, with no significant acquisitions, disposals, or contingent liabilities - The fair value of the investment in Yusheng, a used car trading platform, was US$359 million (approximately RMB 2.568 billion), representing 5.1% of the Group's total assets[101] - As of June 30, 2025, the Group had 4,539 full-time employees, with total staff costs of RMB 614 million[104][105] Interim Condensed Consolidated Financial Information This section presents the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, including the statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, comprehensively reflecting financial performance and position Summary of Financial Statements for H1 2025 (RMB thousands) | Statement Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Statement of Profit or Loss | | | | Revenue | 5,452,057 | 4,467,853 | | Gross Profit | 2,886,203 | 2,128,937 | | Operating Profit | 799,695 | 576,522 | | Profit for the period | 548,678 | 409,676 | | Statement of Financial Position (Period-end) | June 30, 2025 | December 31, 2024 | | Total Assets | 50,339,790 | 48,591,241 | | Total Liabilities | 34,059,427 | 32,111,108 | | Total Equity | 16,280,363 | 16,480,133 | | Statement of Cash Flows | H1 2025 | H1 2024 | | Net cash generated from operating activities | 1,535,606 | 634,081 | | Net cash (used in)/generated from investing activities | (442,527) | 45,743 | | Net cash generated from financing activities | 393,076 | 307,303 | Notes to the Financial Statements The notes detail the basis of financial statement preparation, significant accounting policies, and estimates, providing in-depth analysis and disclosure on financial risk management, segment information, revenue, expenses, assets, and liabilities, indicating the Group's operations are primarily in China across two segments: transaction platform and proprietary financing - The Group's business is divided into two operating segments: transaction platform business and proprietary financing business, with the transaction platform business contributing 79% of revenue and 92% of operating profit in H1 2025[151][153] - The Group uses a "three-stage" impairment model to measure expected credit losses (ECL) for finance lease receivables, calculated based on probability of default (PD), exposure at default (EAD), and loss given default (LGD)[131][133] - As of June 30, 2025, the Group recognized RMB 58.764 million in share-based payment expenses, primarily related to share options and restricted share units granted to employees[185] Other Information This section covers corporate governance practices, directors' securities transaction compliance, and post-reporting period events, noting the company's adherence to governance codes, except for the combined roles of Chairman and CEO, and confirms no interim dividend recommendation and audit committee review of financial statements - The Board does not recommend the payment of an interim dividend for the reporting period[67][207] - The company complies with the Corporate Governance Code, with a deviation where the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Zhang Xua'an, which the Board believes ensures consistent leadership and decision-making efficiency[203] - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial statements for the reporting period[206]