YADEA(HK:01585)2025-09-25 09:00Revenue and Sales Performance - Revenue for the six months ended June 30, 2025, was RMB 19,185.9 million, an increase of approximately 33.1% compared to RMB 14,413.8 million for the same period in 2024[11] - Sales volume of electric two-wheelers increased from 6,382,600 units for the six months ended June 30, 2024, to 8,793,500 units for the same period in 2025, representing a growth of approximately 37.8%[8] - The electric bicycle segment generated revenue of RMB 9,297.6 million, accounting for 48.5% of total revenue, with sales volume of 6,665.5 thousand units[12] - The electric scooter segment contributed RMB 3,808.5 million, representing 19.9% of total revenue, with sales volume of 2,128.0 thousand units[12] - Total revenue for the electric two-wheelers and related accessories segment reached RMB 18,648.5 million for the six months ended June 30, 2025, compared to RMB 19,185.9 million for the same period in 2024, reflecting a decrease of approximately 2.8%[14] - Total revenue for the electric two-wheelers and related accessories segment reached RMB 18,648,461,000 for the six months ended June 30, 2025, compared to RMB 14,205,169,000 for the same period in 2024, representing a year-over-year increase of 31.5%[104] - Revenue from electric bicycles reached RMB 9,297,605 thousand, a 48.8% increase from RMB 6,239,374 thousand in the previous year[98] - The company reported a significant increase in battery and charger revenue, which reached RMB 5,712,664 thousand, up 40.4% from RMB 4,065,296 thousand in 2024[98] Profitability and Margins - Gross margin improved from 18.0% for the six months ended June 30, 2024, to 19.6% for the same period in 2025, driven by an expanded and optimized product mix[8] - Gross profit increased by approximately 45.1% from RMB 2,593.8 million for the six months ended June 30, 2024, to RMB 3,763.2 million for the same period in 2025, with a gross margin of 19.6%[16] - Operating profit increased to RMB 2,117.2 million, up 59.5% from RMB 1,328.0 million in the previous year[75] - Net profit rose by approximately 59.5% from RMB 1,033.9 million for the six months ended June 30, 2024, to RMB 1,649.0 million for the same period in 2025[18] - Basic earnings per share for the period was RMB 54.3, compared to RMB 34.5 for the same period in 2024, reflecting a growth of 57.8%[75] Cash Flow and Investments - Operating cash inflow for the six months ended June 30, 2025, was RMB 4,726.6 million, a significant increase compared to an outflow of RMB 696.5 million for the same period in 2024[19] - Net cash outflow from investing activities for the six months ended June 30, 2025, was RMB 6,376.0 million, compared to RMB 1,086.7 million for the same period in 2024[19] - The financing activities generated a net cash inflow of RMB 1,662,678 thousand in the first half of 2025, compared to RMB 925,445 thousand in the same period of 2024[89] - Cash and cash equivalents stood at RMB 7,875.5 million as of June 30, 2025, remaining stable compared to RMB 7,868.9 million as of December 31, 2024[19] - Cash and cash equivalents remained stable at RMB 7,875,530 thousand in June 2025 compared to RMB 7,868,883 thousand in December 2024, showing a marginal increase of 0.1%[134] Employee and Operational Metrics - As of June 30, 2025, the group had 11,044 employees, a decrease from 12,002 employees as of December 31, 2024, with total employee costs amounting to RMB 1,674.3 million, up from RMB 1,074.8 million for the six months ended June 30, 2024[25] - Employee benefits expenses increased to RMB 1,384,413,000 in the first half of 2025 from RMB 957,495,000 in 2024, marking a rise of 44.5%[108] - The number of restricted share units increased to 75,805,000 as of June 30, 2025, from 17,338,000 in the previous year, reflecting a significant rise in employee incentives[127] Financial Position and Liabilities - Total liabilities to equity ratio increased to 34.2% as of June 30, 2025, compared to 16.4% as of December 31, 2024, primarily due to increased borrowings[24] - Total liabilities increased to RMB 21,150,818 thousand from RMB 15,860,819 thousand, reflecting a rise of approximately 33.5%[82] - The company's borrowings increased significantly to RMB 2,576,620 thousand in June 2025 from RMB 898,806 thousand in December 2024, reflecting a growth of 187.5%[135] - The total financial liabilities reached RMB 19,540,187 thousand in June 2025, up from RMB 14,770,191 thousand in December 2024, which is an increase of 32.5%[135] Corporate Governance and Strategy - The company has fully complied with the corporate governance code and has established an audit committee to oversee financial reporting and risk management[69][72] - The company aims to strengthen its market leadership in the electric two-wheeler sector and create long-term value for shareholders[10] - The overall strategy includes expanding global business presence and deepening brand engagement, particularly with younger consumer segments[10] Stock Options and Incentives - The total number of stock options available for grant under the 2024 Stock Option Plan is 153,190,000 shares as of June 30, 2025[48] - The exercise price for stock options must be at least the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[47] - The company adopted a share option scheme on April 22, 2016, which was conditionally approved by shareholders[36] - The total number of stock options granted during the reporting period was 70,015,000 shares, with a purchase price of 5.40 RMB per share[56] Market and Brand Development - The appointment of Wang Hedi as the global brand ambassador has significantly boosted brand awareness and engagement among younger consumers[9] - New product launches, including the modern series for female riders and the Kinetic T35 model, have become bestsellers, contributing to overall sales growth[9]