Luyuan Group Holdings (02451) issued a profit warning. Profit attributable to shareholders is expected to fall by no more than 35% year-on-year in the first half of the year

According to the Zhitong Finance App, Luyuan Group Holdings (02451) announced that the profit attributable to the Company's owners for the six months ending June 30, 2026 will decrease by no more than 35% compared to the profit attributable to the Company's owners for the six months ending June 30, 2025 (approximately RMB 110 million).

The reduction in profit attributable to the company's owners during the reporting period was mainly driven by two factors at the level of industry and company strategy: (i) cyclical adjustments in industry demand. After a full transition to a new national standard, consumers need time to adapt to new products. Demand from end users seeking replacement slowed down, leading to a year-on-year decline in sales, and the company's revenue as a result. (ii) Increase strategic investment. In order to seize the opportunities brought by industrial upgrading, the company is actively expanding the new growth curve, including high-speed electric motorcycles and physical intelligent robots, while also speeding up overseas market channel construction and product localization. Related R&D costs and upfront investment increased sharply year over year, leading to a temporary decline in profit.

Despite the expected decline in revenue and profit, the company is speeding up the launch of new electric motorcycle models and expanding overseas markets, while actively developing key components for self-made intelligent robots to improve their future performance.