Luyuan Group has released its interim results for fiscal 2026, reporting revenue of RMB 2.463 billion and profit attributable to equity holders of RMB 75.082 million for the period. The company's top and bottom lines showed some volatility during the reporting window, reflecting a combination of market dynamics and deliberate strategic investments.

Management attributed the performance fluctuation to two primary factors. First, the cyclical adjustment in industry demand has played a role. Following the full transition to new national standards, consumers have required time to adapt to the updated products, which has slowed replacement demand from end users. This softening demand contributed to a year-on-year decline in sales volumes and consequently reduced the company's revenue. Second, the company has increased its strategic investments. To seize opportunities arising from industrial upgrades, Luyuan has proactively expanded into new growth areas such as high-speed electric motorcycles and embodied AI robotics, while also accelerating overseas market channel development and product localization efforts. The associated research and development costs and initial investments surged year-on-year, leading to a temporary decline in profit.

Despite the short-term fluctuations in financial performance, Luyuan emphasized that its technological expertise, manufacturing capabilities, channel network, and industrial foundation remain solid. During the reporting period, the company's gross margin improved from 13.6% to 13.8%, while electric scooter revenue climbed 76.9% year-on-year and overseas sales grew approximately 40% year-on-year. Progress was also made across product upgrades, channel digitalization, and partnerships in the embodied intelligence space.

Luyuan noted in its financial report that China's electric two-wheeler industry has gradually shifted from a phase of incremental expansion to one of market share competition. The previous model of growth driven primarily by increased investment is now showing diminishing marginal returns. During the reporting period, the company identified new strategic development opportunities. On one hand, the overseas electric two-wheeler market remains in a phase of sustained growth, offering substantial market potential. On the other hand, with continuous breakthroughs in artificial intelligence and embodied robotics technology, improvements in core product capabilities, and the gradual expansion of application scenarios, the embodied robotics industry is entering a critical stage of accelerated development with a favorable outlook.

Throughout the reporting period, Luyuan has continued to implement its "One Body, Two Wings" strategy, focusing on enhancing quality and efficiency in its core business while steadily advancing product upgrades, channel optimization, and the cultivation of new growth curves. This strategy positions the domestic electric two-wheeler business as the "body," while overseas operations and the embodied AI robotics business serve as the "two wings."

In terms of overseas business, the company plans to leverage collaboration opportunities with partners such as the BMW Group across technology, channels, markets, branding, and R&D. Luyuan will continue to refine its product portfolio in key markets, systematically advance localization certifications, local production, and channel expansion, and progressively strengthen its system capabilities for overseas business development.

Regarding embodied AI robotics, the company aims to apply its core technological strengths in motors, reduction gears, and other components, along with its large-scale manufacturing capabilities, to drive the transformation and application of core technologies highly relevant to joint technology in embodied intelligent robotics across new application scenarios. Luyuan has signed strategic cooperation agreements with Youlu and JAKA Robotics, and has taken the lead in establishing the Jinhua Development Zone Robotics Industry Alliance, bringing together 8 research institutions and 20 core enterprises to foster collaborative industrial development. By advancing orders for over 100,000 units of high-precision planetary reduction joint modules and 10,000 complete machine sets, the company is gradually transitioning from technical and product validation to scaled manufacturing and commercialization.