Autostreets Development (2443) H1 2024 earnings summary

Executive summary

• H1 revenue fell 15.5% YoY to RMB191.3m and gross profit declined 14.8% to RMB123.7m; vehicles transacted and served rose 1.8% to 189,591.

• IFRS net loss widened to RMB142.2m from RMB34.9m; adjusted net profit was RMB26.7m, down from RMB41.1m.

• Listed on the Hong Kong Stock Exchange on 31 May 2024; IPO net proceeds of HK$83.0m remained unutilized at 30 June.

Financial highlights

• Revenue was RMB191.3m, down 15.5% YoY; cost of sales declined 16.6% to RMB67.6m and gross profit fell 14.8% to RMB123.7m.

• Loss before tax rose to RMB135.7m from RMB27.4m; net loss was RMB142.2m versus RMB34.9m.

• Administrative expenses rose 13.6% to RMB77.2m, including higher listing expenses; selling and distribution expenses fell 13.8% to RMB39.6m.

• Basic and diluted loss per share was RMB0.19 versus RMB0.13; listing expenses were RMB26.7m versus RMB11.9m.

• Operating cash flow was an outflow of RMB63.6m, compared with an inflow of RMB31.0m in H1 2023.

Outlook and guidance

• Priorities include expanding auction sites and seller/buyer channels, upgrading facilities and digital tools, and diversifying services and revenue streams.

• Plans include deeper new-energy vehicle capabilities, stronger manufacturer collaboration, and exploring strategic cooperation and acquisitions.

• IPO proceeds are expected to be fully utilized for stated purposes by December 2028.