Beijing UBOX Online Technology (2429) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 6.1% YoY to RMB2,672.0m; gross profit increased 1.1% to RMB1,088.7m, while loss for the year widened 12.9% to RMB319.5m.

• Adjusted EBITDA improved to RMB65.5m from RMB21.0m, and adjusted net loss narrowed 22.1% to RMB203.2m; operating cash inflow was RMB106.6m.

Financial highlights

• Cost of sales increased 9.8% YoY to RMB1,583.4m; gross margin declined to 40.7% from 42.7%, reflecting a mix shift toward lower-margin wholesale and mobile device distribution.

• Operating loss widened 22.9% to RMB299.5m; loss before tax was RMB314.0m, and loss attributable to owners was RMB327.3m.

• Selling and marketing expenses fell 2.6% to RMB1,125.7m; G&A expenses rose 67.4% to RMB213.3m, including RMB73.7m of additional share-based compensation expense.

Outlook and guidance

• Plans include expanding POS coverage in tier one, new tier one and tier two cities, then selectively entering tier three cities and below; stated goals include scale economies and improved profitability.

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

• Unutilized IPO proceeds are expected to be fully deployed by Dec. 31, 2025, subject to market conditions, policies and suitable opportunities.