Analysis of Yadea Holdings' 2025 Capital Expenditure Plan and Capacity Utilization

Based on collected public information, below is a detailed analysis of Yadea Holdings (01585.HK)'s 2025 capital expenditure plan and capacity utilization:

Yadea adopts an

operation model, with its capital expenditure intensity significantly lower than that of traditional automakers [1][2]. According to industry analysis:

• Capital Expenditure Ratio
  : Yadea’s capital expenditure is only
  1/3 to 1/5
  that of automakers, reflecting its efficient capital allocation efficiency [1][2]
• Production Model
  : Yadea’s ten smart bases focus on assembly, with core components combining external procurement and independent R&D, effectively controlling fixed asset investment [1][2]
• Channel Model
  : Yadea has over 40,000 stores, most of which are franchised dealers, representing asset-light expansion; in contrast, most traditional automakers adopt direct sales models, with higher costs for authorized stores [1][2]

Yadea has made major capacity layouts in overseas markets in 2025:

Region	Investment Amount	Capacity Plan	Specific Progress
West Java, Indonesia	US$150 million	3 million units/year	New factory construction in 2025, covering core production processes such as welding, painting, and motors [3][4]
Bac Giang Province, Vietnam	Undisclosed	500,000 units/year	Original capacity of 200,000 units; plans to add 4 production lines to increase annual capacity to 500,000 units [3][4]

Despite overall controllable capital expenditure, Yadea has spared no effort in R&D investment:

• R&D Expenses (2022-2024)
  : RMB1.106 billion, RMB1.192 billion, and RMB1.147 billion respectively, with a cumulative investment of
  RMB3.45 billion
  over three years [1]
• First Half of 2025
  : R&D expenses reached RMB624.2 million, a significant
  27% YoY increase
  [1]

Yadea currently has

, including:

• 7 Domestic Bases
  : Located in Jiangsu, Tianjin, Zhejiang, Guangdong, Chongqing, Anhui, etc. [4]
• 3 Overseas Bases
  : Located in Vietnam, Indonesia, Thailand, Mexico, etc. [4]
• Annual Capacity
  : Total of
  over 15 million units
  [4]

Based on public information estimates:

Indicator	2024	2025 (Projected)
Annual Sales Volume	13 million units	16.5-17 million units [1]
Capacity Utilization	Approx. 87%	Approx. 100%+
Average Unit Price	RMB1,487	RMB2,340-RMB2,380 [1]

In 2025, Yadea’s projected sales volume will exceed its capacity ceiling, indicating that capacity utilization is at a

, and the company may need to further expand capacity to meet market demand.

1. Growth in Market Demand
   : Revenue in the first half of 2025 reached RMB19.19 billion, with a
   33.11% YoY increase
   [1][2]
2. High-End Strategy
   : Launched the VFLY sub-brand (collaborated with Porsche Design, priced RMB6,999-RMB19,800) and the Crown Series [1]
3. Overseas Market Expansion
   : Sales in the Southeast Asian market achieved
   100% growth
   in the first half of 2025 [4]

Financial Indicator	2024	2025	Growth Rate
Net Profit	RMB1.27 billion	≥RMB2.9 billion	>128% [1][2]
Gross Margin	15.19%	19.61% (First Half)	Increased by 4.42 percentage points [1]
Net Margin	-	8.60% (First Half, a record high) [1]

• Inventory Turnover Days
  : Approximately 35 days,
  1/2 that of automakers
  , with fast cash flow recovery [1][2]
• Financial Expense Ratio
  : 1%, far lower than the
  3%-5% of automakers
  [1][2]
• Market Share
  :
  26.3%
  , firmly ranking first in the industry [1]

: Yadea adopts a capital expenditure strategy of “Asset-Light, R&D-Focused, Globalization”, achieving efficient growth through controlling fixed asset investment, optimizing the supply chain, and accelerating overseas layout. Key investment directions in 2025 include:

1. Construction of the Indonesia factory (US$150 million) to serve the Southeast Asian market
2. Capacity expansion of the Vietnam base (from 200,000 units to 500,000 units)
3. Sustained high-intensity R&D investment to support the high-end strategy

: Based on the 2025 sales forecast (16.5-17 million units) and existing capacity scale (over 15 million units), Yadea’s capacity utilization is expected to approach or exceed 100%, which is at a high level, providing clear demand support for subsequent capacity expansion.

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[1] BT Finance - “The automotive industry may not realize that two-wheeler Yadea is more profitable than four-wheelers?” (https://mp.ofweek.com/im/a256714710617)

[2] 36Kr - “The automotive industry may not realize that two-wheeler Yadea is more profitable than four-wheelers?” (https://m.36kr.com/p/3631808920793858)

[3] Guosen Securities - “Research Report on Yadea Holdings (01585.HK)” (https://pdf.dfcfw.com/pdf/H3_AP202504031650825145_1.pdf)

[4] CSDN - “Two-Wheeler Electric Vehicle Market Under the New National Standard: Industrial Transformation from Compliance to Innovation” (https://blog.csdn.net/IOT5570/article/details/155576057)