Summary
The financial report of Bafang in 2024
In 2024, the Chinese motor manufacturer Bafang is facing a challenging year, marked by a substantial decrease in its revenue and profits compared to 2023. Despite these discouraging results, the company remains confident in the future of the electric bicycle industry.
Significant drop in profits
Bafang recorded a 25% drop in revenue, from 176.3 million euros to 132.5 million euros in the first nine months of the year. At the same time, net profit fell by 55%, from 15 million euros to 6.7 million euros. This situation is part of a global context of sales declining by 25% from January to June.
Causes of the decline
Several factors explain this downturn: inflation, slowing demand, geopolitical uncertainties, as well as excessive inventory levels. These challenges are common to many actors in the bicycle sector.
Future prospects
Despite these obstacles, Bafang is optimistic in the long term. With reducing carbon emissions being a global imperative, many countries will increase their subsidies and investments in infrastructure to promote electric mobility. Thus, the electric bicycle market continues to present significant potential.
The problem of excess inventory, particularly costly, has been a major challenge for many brands for about two years. However, some, like Accell Group, have succeeded in bringing their inventory levels back to normal, demonstrating more effective management.
