Bairong AI (6608) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 9% to RMB2,929.27m; gross profit increased 10% to RMB2,141.71m, with gross margin at 73%.

• IFRS profit fell 21% to RMB266.03m; non-IFRS profit was RMB376.05m, versus RMB375.06m in FY2023.

• BaaS Financial Scenario led growth; MaaS revenue rose 5%, while BaaS Insurance Scenario revenue declined 3%.

• Served 7,000+ institutional clients and advanced VoiceGPT, CybotStar and digital-human applications across financial and non-financial use cases.

Financial highlights

• Operating profit declined 18% to RMB285.23m; non-IFRS EBITDA increased 5% to RMB486.18m from RMB463.78m.

• R&D expense rose 34% to RMB509.29m; sales and marketing expense increased 4% to RMB1,118.94m, and G&A expense rose 26% to RMB328m.

• Net cash used in operating activities was RMB302.78m, versus RMB339.16m in FY2023; cash and cash equivalents ended the year at RMB778.39m.

• Basic EPS was RMB0.58 versus RMB0.72; diluted EPS was RMB0.56 versus RMB0.68.

Outlook and guidance

• FY25 revenue guidance targets double-digit growth, with planned additional spending of CNY 300m to support innovation and resource allocation.

• 2025 priorities include investment in Generative AI and Discriminant AI, multimodal LLMs, voice-agent emotion recognition and multi-agent collaboration.

• Plans include deeper credit and insurance offerings, broader wealth and payments services, and cross-industry products such as Agent-as-a-Service.

• Expansion beyond pan-financial markets targets healthcare, education, retail and recruitment, with privacy and data security protections.