Luyuan Group Holding (Cayman) Limited reported unaudited results for the six months ended 30 June 2026.
Revenue and earnings • Revenue fell 20.4% year-on-year (YoY) to RMB 2.46 billion as replacement demand softened after the full rollout of China’s new e-bike standards. • Profit attributable to shareholders declined 31.8% YoY to RMB 75.08 million. • Gross profit slipped 19.0% YoY to RMB 339.98 million, yet gross margin improved by 0.2 percentage point to 13.8% on product-mix optimisation and cost control.
Segment performance • Electric bicycles remained the largest segment, generating RMB 1.23 billion (49.8% of revenue), down 38.5% YoY. • Electric scooters (including motorcycles) rose 76.9% YoY to RMB 626.55 million, supported by robust demand for longer-distance commuting; management disclosed sales of c.402,000 electric motorcycles (+78.2% YoY), ranking first in China during the period. • Battery sales fell 22.9% YoY to RMB 459.65 million, mirroring the slowdown in bicycle demand. • Services contributed RMB 20.28 million, 0.8% of total revenue.
Cost structure and expenses • Cost of sales decreased 20.6% YoY to RMB 2.12 billion. • Selling and marketing costs fell 25.5% to RMB 135.58 million; R&D spending declined 9.8% to RMB 93.99 million as resources shifted toward high-speed motorcycles and embodied-intelligence robotics. • Administrative expenses rose 6.8% to RMB 60.48 million, mainly due to higher depreciation. • Net finance cost swung to RMB 4.65 million from net income of RMB 0.31 million on higher borrowing charges and lower deposit interest.
Cash flow and balance sheet • Cash and cash equivalents totalled RMB 346.92 million, down 26.9% from end-2025, reflecting higher time-deposit allocation. • Total assets stood at RMB 5.35 billion (+5.1% versus end-2025); equity reached RMB 1.73 billion (+3.2%). • Interest-bearing debt was largely stable at RMB 1.29 billion; gearing ratio eased to 75.8% (end-2025: 78.0%). • Current ratio slipped to 1.02x from 1.10x. • Capital expenditure amounted to RMB 110.90 million, down 19.2% YoY.
Operational highlights • Overseas sales volume expanded about 40% YoY, aided by channel build-out and product localisation. • More than 100,000 planetary reduction joint modules and 10,000 embodied-intelligence robot units progressed toward scale production, leveraging the group’s liquid-cooled motor and smart-manufacturing technology. • R&D patent portfolio grew to 1,223 patents after 118 new grants during the period.
Subsequent event • Early July floods temporarily disrupted the Guigang (Guangxi) plant; production has been re-allocated to other bases. Loss assessment and insurance recovery are under way.
Capital management • The company repurchased 0.96 million shares in June for approximately HKD 11.75 million, all held as treasury stock. • No interim dividend was declared.
Outlook Management will continue executing the “One Body, Two Wings” strategy: consolidating the core domestic e-two-wheeler business while accelerating overseas expansion and commercialisation of embodied-intelligence robotics. Key initiatives include deepening liquid-cooled motor and smart-ecosystem R&D, upgrading intelligent manufacturing, and strengthening global branding and channel networks.