Changjiu Holdings (6959) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 9.0% YoY to RMB337.2m; profit increased 63.7% to RMB57.8m, while adjusted net profit grew 26.9% to RMB77.3m.

• Growth was led by pledged vehicle monitoring services; gross margin improved 0.7 percentage points to 43.8%.

• Listed on January 9, 2024, raising net proceeds of HK$254.1m; 11.7% of proceeds had been utilized by the announcement date.

Financial highlights

• Revenue was RMB337.2m, up 9.0% YoY; gross profit was RMB147.7m, up 10.7% YoY.

• Profit for the period was RMB57.8m, up 63.7% YoY; profit from operations was RMB69.5m versus RMB57.0m in H1 2023.

• Adjusted net profit, adding back listing and share-based compensation expenses, was RMB77.3m versus RMB60.9m, up 26.9% YoY.

• Basic EPS was RMB0.2891, up 23.7% YoY; diluted EPS was RMB0.2869, up 22.8% YoY.

Outlook and guidance

• Plans include improving pledged vehicle monitoring, building an integrated support system for automobile sales and distribution, expanding dealership management capacity, and developing foreign and smart businesses.

• 9CheGO, launched in March 2024, began dealership verification in July; verified dealership partners exceeded 24,000 by the announcement date.

• Net proceeds use remains aligned with prospectus allocations; completion timing depends on business development, with full utilization generally targeted by end-2026.