Continuous price competition in the two-wheeled electric vehicle sector, Yadea Holdings' gross profit down 14% in the first half of the year

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On August 25, Yadea Holdings announced its 2026 interim results. According to the financial report, the company achieved revenue of 18.236 billion yuan in the first half of the year, a decrease of about 5.0% year-on-year; gross profit was 3.236 billion yuan, a decrease of about 14.0% year-on-year; profit attributable to owners of the company was 1.201 billion yuan, down about 27.2% year-on-year.

From the perspective of revenue structure, Yadea’s performance in the first half of the year was under pressure, mainly due to changes in sales of its core electric two-wheeler business.

According to the company’s announcement, during the period, sales of electric bicycles and related products were affected, with a decline in electric bicycle sales being one of the main factors behind the decrease in revenue. Meanwhile, some sub-categories still maintained growth, with electric scooter sales increasing by about 63.7% year-on-year to 3.4842 million units.

As a leading domestic electric two-wheeler company, Yadea has in recent years continued to expand its product coverage, extending from traditional electric bicycles to electric motorcycles, electric scooters, and high-end smart models.

In recent years, the company has relied on channel expansion, product upgrades, and economies of scale to maintain growth. However, as the industry enters a stage of stock competition, the growth logic of enterprises is gradually shifting from simply increasing sales volume to competing on product structure, channel efficiency, and profitability.

In terms of profitability, Yadea's gross profit in the first half of the year declined by a greater margin than revenue, reflecting greater pressure on the profit side. With revenue down about 5% year-on-year, gross profit fell by about 14%, and company profit decreased by 27.2%. This indicates that in a competitive market environment, changes in product structure, promotional investments, and cost factors may impact profitability.

In recent years, competition in the electric two-wheeler industry has continued to intensify. On one hand, industry demand has gradually moved from rapid growth into a mature phase, with leading companies competing on channels, pricing, and products; on the other hand, with the implementation of new national standards, battery technology upgrades, and the advancement of smart trends, companies need to continuously invest in R&D and supply chain systems to enhance product competitiveness.

Yadea previously established its advantage through a 'channel penetration + scale manufacturing' model, and still possesses a large sales network and strong brand influence. However, industry changes now require companies to further improve single store efficiency and product added value. Unlike the past where revenue was driven by sales volume growth, in the current market environment, increasing the proportion of mid-to-high-end products and improving the profitability per vehicle have become key focuses for companies.

From the business layout perspective, Yadea has also in recent years been exploring more growth directions, including high-end smart electric vehicles, battery swap ecology, and overseas market expansion. However, these businesses are still in the cultivation stage and contribute limitedly to overall performance in the short term. The company’s future growth will still mainly rely on the competitiveness of its core two-wheeler business.

It is worth noting that, although profits declined in the first half of the year, Yadea still maintained a large revenue scale. The half-year revenue of 18.2 billion yuan shows that the company’s market position in the industry remains relatively solid. For electric two-wheeler companies, as market competition shifts from incremental expansion to efficiency competition, how to improve profitability while maintaining market share will become an important topic in the next stage.

Overall, Yadea’s performance in the first half of 2026 reflects the current development characteristics of the electric two-wheeler industry: the market size still exists but the high-speed growth dividend is waning; enterprises need to seek new growth opportunities through product structure optimization, cost control, and new business layouts.

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