From leading by scale to reconstructing value, Yadi (01585) opens up new growth space with intelligent inclusiveness.

Maintaining a business orientation centered on user needs, focusing on diversified product innovation and cutting-edge technology implementation, YADEA (01585) will deliver a high-quality performance report in 2025. According to the financial report, in 2025, Yadea achieved an operating income of 37.008 billion yuan, a year-on-year increase of 31.1%; a net profit attributable to shareholders of 2.912 billion yuan, a significant increase of 128.8%; basic earnings per share of approximately 0.96 yuan, a year-on-year increase of 127.0%. Impressive performance has led to positive feedback from the capital market, with the company's share price reaching a new high of 13.4 Hong Kong dollars within the year on March 31, with a maximum increase of 17.4% during the month of March. Amidst the increasing concentration in the industry, the profitability advantage of leading companies continues to expand. With the implementation of the new national standard for electric two-wheelers driving deep optimization of the industry structure, compliance and technological upgrades have become the development themes. Smaller brands are accelerating their exit due to high compliance costs and inadequate research and development capabilities, leading to a significant "siphoning effect" in the industry competition landscape. The financial report shows that in 2025, Yadea sold 11.4535 million electric bicycles, a year-on-year increase of 26%; 4.8157 million electric scooters, a year-on-year increase of 22.5%, with a total sales volume of 16.2692 million units, maintaining the global number one spot for nine consecutive years. With economies of scale, the company's profit structure continues to improve, with a gross profit margin increasing from 15.2% in 2024 to 19.1%. This improvement is partly due to cost control efficiencies brought about by scale purchasing, and also benefits from the differentiated value derived from a diverse product matrix, becoming a key factor in breaking away from industry price competition. The synergetic growth of scale and profitability promotes the enhancement of operational quality and financial health. In 2025, Yadea's operating activities generated a net cash flow of 5.99 billion yuan, a significant improvement from 2024's 2.99 billion yuan, reflecting the refined management of supply chain recovery and inventory turnover under economies of scale. The efficiency of inventory turnover continues to improve, with the average inventory turnover days reduced from 17.03 days in 2024 to 16.5 days in 2025, accelerating inventory turnover further reducing operating fund occupancy, enhancing overall asset operational efficiency. By the end of 2025, the company had cash and cash equivalents of approximately 5.99 billion yuan, providing a solid financial foundation for research and development investment, global capacity layout, and market channel expansion. In 2025, Yadea invested approximately 1.405 billion yuan in research and development, a year-on-year increase of 22.5%, with research resources mainly focused on smart platforms, Internet technology, and core power systems, aiming at the industry's smart upgrade trend. By the end of 2025, the company had accumulated more than 2,000 patents, forming an independent and controllable technological system in key areas such as smart operating systems, core power systems, and safety technology, building a technological barrier that enhances the company's core competitiveness, becoming the core support for product differentiation and the promotion of smart inclusiveness. Driving the landing of smart inclusiveness, reconstructing the industry's value with technology and products. If scale growth lays the foundation for Yadea's development, the intelligent iteration of products becomes the core lever for the company to open up long-term growth space. Different from other brands that limit smart configurations to high-end models, Yadea, at the 2026 Crown Energy Intelligent Technology Carnival held in March, landed the concept of "national-level intelligence" with its self-developed YADEAOS operating system, promoting the transition of smart technology from niche experimentation to universal inclusiveness, forming a unique product differentiation advantage, reshaping the value logic of the two-wheeler industry with intelligent product iteration. The three flagship new products released at the carnival, Yadea Crown Energy Shark II, Yadea Crown Energy Starship II, and Yadea Crown Energy i7, are positioned around the smart, performance, and trendy tracks, all built on this system, forming a product lineup of "entry-level intelligence, mid-range comprehensive, and high-end leading," truly returning the dominance of intelligence to the real needs of users. Yadea Crown Energy Shark II, as the core achievement of intelligent transformation and benchmark product of smart inclusiveness, scored 925 points in the comprehensive evaluation of LUDASHI smart electric vehicles, ranking first among electric motorcycles within the ten thousand yuan range. The endorsement from the technology influencer Tim swiftly made it a popular product in the smart mobility market after its launch. Yadea Crown Energy Shark II highlights "smart evolution, advanced configuration leap," featuring a shark-inspired aesthetic design, equipped with a 6-inch Smart intelligent screen, iRide convenient vehicle control core configuration, along with Ark safety technology, Aurora sodium battery, and TTFAR versatile motor, ensuring travel safety, performance, and endurance, with a large 30L seat box fitting daily commuting needs perfectly. Yadea Crown Energy Starship II is positioned as an "AI intelligent high-end supercar," equipped with a 7-inch upgraded Smart intelligent screen, Falcon water-cooling controller, supporting multi-mode power switching, with high-performance semi-solid lithium battery and 20A super fast charging achieving long endurance and quick replenishment, creating ultimate control with a automotive-grade dual-channel valve ABS and high-performance chassis system. Yadea Crown Energy i7 focuses on "high-energy player full control," featuring a personalized exterior design aesthetics, a 6-inch Smart intelligent screen supporting screen navigation, AI virtual assistant, iRide convenient vehicle use and Ark safety technology forming a dual guarantee, delivering a personalized, interactive, and enjoyable intelligent travel experience. With three products and three different segments, precisely meeting the needs of three types of users, Yadea's systematic approach to intelligence is evident. Worth noting is that Yadea's product intelligent iteration is not simply about adding functions, but rather based on precise iteration and scenario-based design using millions of user ride data. It addresses safety pain points in daily urban commuting, complex riding demands on roads, details of daily use experiences, and long-distance travel endurance, all focusing on users' real travel scenarios. Features such as safety assistance "little blue light" and all-scenario slope control system truly serve travel safety; features like screen navigation and AI travel assistant cater to the smart interaction habits of younger users. Yadea's product iteration model of "technology sinking + value enhancement" has successfully reshaped the value standards of the two-wheeler industry, making intelligence a more accessible travel experience for more users. Leading industry upgrades, opening up long-term growth and valuation spaces. Driven by policy compliance and consumer upgrade, the two-wheeler travel industry is transitioning from price and scale competition to value and intelligence competition. Yadea is leading the overall industry upgrade with its leading advantage, promoting the inclusiveness of intelligent technology as the core direction for transforming and upgrading the industry. With solid performance support and forward-looking strategic layout, the company continues to promote technological inclusiveness and product innovation centered on users, leading to high-quality and sustainable development of the two-wheeler travel industry, consolidating its position as the global leader in intelligent travel. In this transformation process, Yadea's practice of "national-level intelligence" breaks through the industry's inherent perceptions of intelligence. By independently controlling the underlying technology with its self-developed YADEAOS system, leveraging advantages in large-scale production and full industry chain integration, the company reduces the cost of intelligent hardware and enables even low-priced models to be equipped with high-end intelligent configurations, driving the industry's shift from price competition to value competition centered on user value. From a valuation perspective, the company's current price-earnings ratio (TTM) is approximately 12.8 times (as of the closing price on March 31 at 13.25 Hong Kong dollars), significantly lower than the industry average. Combined with the company's proposed year-end dividend of 0.53 Hong Kong dollars per share for 2025, the dividend yield is approximately 4.0% based on the closing price, providing stable cash returns. With multiple favorable factors such as high performance growth, accelerated intelligent transformation, and optimized industry structure, the company's potential valuation recovery is clear. Cathay Haitong projects a target price of 17.49 Hong Kong dollars based on a 15 times PE valuation for 2026, corresponding to a potential upside of approximately 32.0% from the closing price of 13.25 Hong Kong dollars on March 31, and maintains a "buy" rating, fully recognizing the company's long-term growth potential. In conclusion, Yadea's high growth in 2025 is the comprehensive result of product upgrades and the implementation of research and development investments, as well as a natural outcome of its business orientation of catering to user preferences and focusing on product innovation and technological implementation. In the era of deep integration of smart economy and green travel, Yadea, based on stable performance growth, core product intelligence iteration, and user-centric orientation, continues to drive technological implementation and industry upgrades. In the future, with the continuous iteration of smart technology and the enrichment of the smart model matrix, Yadea is expected to achieve simultaneous growth in scale and value, leading the high-quality development of the two-wheeler travel industry. Its approach of promoting industry value restructuring through technological inclusiveness also provides a practical reference for the transformation of China's manufacturing industry from scale advantages to value advantages.