Beisen Holding (9669) H1 2024 earnings summary

Executive summary

• H1 FY2025 revenue rose 9.0% YoY to RMB436.6m, led by cloud HCM subscriptions; adjusted net loss narrowed 60.2% to RMB34.2m as cost controls improved operating efficiency.

• Cloud HCM increased to 77.6% of revenue from 74.0%; ARR reached RMB783.9m, with 107% subscription revenue retention.

Financial highlights

• Revenue was RMB436.6m, up 9.0% YoY; gross profit rose 18.9% to RMB281.8m and reported gross margin expanded to 64.5% from 59.2%.

• Net loss was RMB99.0m versus RMB3,058.1m a year earlier; adjusted net loss was RMB34.2m versus RMB85.9m, down 60.2% YoY.

• Operating loss was RMB95.8m versus RMB249.5m; basic and diluted loss per share was RMB0.14 versus RMB4.64.

• Net cash used in operating activities improved 44.2% YoY to RMB97.0m.

Outlook and guidance

• FY2025 H2 priorities include expanding overseas-ready HCM capabilities, advancing AI assistants and commercialization, and deepening cross-selling and large-client coverage; no numerical revenue guidance was stated.

• Five-year CAGRs cited: ARR 23%, average ARR per client over 12%, and Core HCM integration ARR over 50%; subscription revenue retention has stayed near 107%.

• Customer success managers will lead renewal management, while sales resources focus more on new-client acquisition.