Autostreets Development (2443) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 16.9% YoY to RMB408.6m; IFRS net loss was RMB110.6m, while adjusted net profit was RMB58.4m.

• Used-vehicle transactions and services totaled ~412,000 units, down 3.3% YoY; auction transactions rose 2.3% to ~180,000 units.

• Hong Kong listing completed on 31 May 2024; the listing also triggered automatic conversion of convertible redeemable preferred shares into ordinary shares.

Financial highlights

• Revenue declined to RMB408.6m from RMB492.0m; lower auction prices, weaker inspection demand, reduced trade-in activity and fewer exhibition services contributed to the fall.

• Gross profit decreased 18.4% to RMB255.1m; gross margin was 62.4%, down 1.1 percentage points YoY.

• IFRS net loss was RMB110.6m versus net profit of RMB9.3m; loss before tax was RMB101.4m, including RMB142.3m of fair-value losses on financial liabilities.

• Adjusted net profit, excluding listing expenses and fair-value changes of preferred shares and warrants, was RMB58.4m, down 45.4% YoY.

• Selling and distribution expenses fell 10.7% to RMB80.4m and administrative expenses fell 3.4% to RMB134.1m, reflecting cost controls and efficiency measures.

Outlook and guidance

• Priorities include expanding and optimizing auction sites, growing seller and Professional Buyer channels, diversifying services, and strengthening cooperation with new-energy vehicle OEMs.

• Plans also include developing used-vehicle data, inspection and appraisal tools, upgrading digital services, and exploring strategic cooperation and acquisitions.

• Bulk vehicle disposal capabilities developed with OEMs, affiliated financial institutions and mobility platforms are expected to see further improvement and development in 2025.