Beijing UBOX Online Technology (2429) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 9.2% YoY to RMB2,918.9m; net loss narrowed 34.0% to RMB210.7m and adjusted net loss narrowed 43.0% to RMB115.4m.

• Ubox POSS increased 12.4% to 67,144, while average monthly vending-machine GMV rose 5.5% to RMB3,327 per machine.

Financial highlights

• Gross profit fell 4.4% to RMB1,041.3m; gross margin declined 5.0 percentage points to 35.7%.

• Operating loss narrowed 40.9% to RMB176.8m; loss before tax narrowed 38.9% to RMB191.8m.

• Selling and marketing expenses fell 9.2% to RMB1,022.2m; G&A fell 42.0% to RMB123.8m, partly reflecting lower share-based compensation and no listing expenses.

• Basic and diluted loss per share improved to RMB0.25 from RMB0.43; net loss attributable to owners was RMB197.3m.

Outlook and guidance

• Priorities include expanding POS coverage, improving profitability through operational efficiency and technology, and increasing wholesale and supply-chain services for vending-machine operators.

• Plans include using AI and big data to refine merchandise mix and restocking, upgrading equipment, expanding unmanned retail in small and mid-sized enterprises, and developing community karaoke.

• Unutilized Global Offering proceeds of HK$50.2m are expected to be fully used by Dec. 31, 2025, subject to market conditions, policies and suitable opportunities.