Beijing UBOX Online Technology (2429) H1 2024 earnings summary

Executive summary

• H1 revenue rose 7.3% YoY to RMB1,343.7m, while gross profit fell 6.1% to RMB486.2m as lower-margin wholesale and mobile-device distribution grew.

• Net loss narrowed 32.9% YoY to RMB98.9m; adjusted net loss improved 21.7% to RMB71.5m, while adjusted EBITDA declined 66.1% to RMB14.8m.

• Operating cash flow was positive at RMB73.4m; cash and cash equivalents rose to RMB424.8m at June 30, 2024.

Financial highlights

• Revenue increased 7.3% YoY to RMB1,343.7m; cost of sales rose 16.7% to RMB857.5m, outpacing revenue growth.

• Gross profit decreased 6.1% YoY to RMB486.2m; reported gross margin fell to 36.2% from 41.3%.

• Operating loss narrowed to RMB85.4m from RMB138.2m; net loss narrowed to RMB98.9m from RMB147.4m.

• Loss attributable to owners was RMB100.7m versus RMB152.5m; basic and diluted loss per share improved to RMB0.13 from RMB0.20.

• Adjusted EBITDA was RMB14.8m versus RMB43.6m; adjusted net loss was RMB71.5m versus RMB91.3m.

Outlook and guidance

• Plans include expanding POS coverage in tier-one, new tier-one and tier-two cities, then gradually entering tier-three cities and below to improve scale, efficiency and profitability.

• R&D priorities include data analytics, algorithm optimization, AI recognition and vending-machine hardware improvements for durability, energy efficiency and broader use cases.

• Further growth plans focus on customized and channel-limited merchandise, a wider POS network, digital operating efficiency and diversified payment methods.