Beijing UBOX Online Technology (2429) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 3.1% YoY to RMB1,302.1m; gross profit declined 1.1% to RMB480.7m, while gross margin rose 0.7 percentage points to 36.9%.

• Net loss narrowed 61.9% to RMB37.6m; adjusted net loss, excluding share-based compensation, narrowed 57.3% to RMB30.6m.

• Operating cash inflow was RMB64.7m; cash and cash equivalents increased to RMB490.7m at June 30, 2025.

Financial highlights

• Cost of sales decreased 4.2% YoY to RMB821.3m; selling and marketing expenses fell 3.6% to RMB466.4m, G&A fell 33.7% to RMB49.0m, and R&D fell 30.7% to RMB9.6m.

• Operating loss narrowed to RMB33.2m from RMB85.4m; loss attributable to owners was RMB32.0m versus RMB100.7m, and basic loss per share was RMB0.04 versus RMB0.13.

• Adjusted net loss adds back RMB7.1m of share-based compensation, versus RMB27.4m in H1 2024; adjusted loss improved with lower expenses and full depreciation of historical equipment.

• Reversal of expected credit losses was RMB12.6m, versus a RMB4.4m impairment loss in H1 2024, mainly reflecting recovery of previously subleased office rent.

Outlook and guidance

• Plans prioritize expanding the POS network and improving profitability through operating efficiency, logistics and inventory management, digitalization, technology upgrades and innovation.

• AI and big data are intended to refine consumer-demand analysis, merchandise mix and restocking, supporting higher gross margin, revenue and operating efficiency.

• Growth plans include attracting more retail participants, extending unmanned retail to small and mid-sized enterprises, expanding merchandise supply services and developing community karaoke scenarios.