Chenqi Technology (9680) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 13.6% YoY to RMB1,037.1m; gross loss narrowed 54.1% to RMB32.4m and net loss improved to RMB331.6m.

• Mobility activity expanded: orders reached 48.5m versus 43.2m, daily orders 266.7k versus 238.9k, and registered riders 33.8m versus 21.6m.

• Adjusted net loss, a non-IFRS measure excluding specified investor-liability remeasurements, share-based payments and listing expenses, fell 14.0% to RMB242.0m.

Financial highlights

• Revenue was RMB1,037.1m, up 13.6% YoY; cost of revenue increased 8.8% to RMB1,069.5m.

• Gross loss narrowed to RMB32.4m from RMB70.7m; gross loss margin improved to -3.1% from -7.7%.

• Operating loss decreased to RMB255.9m from RMB309.6m; net loss was RMB331.6m versus RMB345.4m.

• Basic and diluted loss per share was RMB3.67 versus RMB3.84; selling and marketing expense fell 21.7% to RMB85.9m, G&A fell 12.8% to RMB63.4m, and R&D rose 27.5% to RMB73.5m.

• Adjusted net loss was RMB242.0m versus RMB281.3m, excluding specified non-cash investor-liability remeasurements, share-based payments and listing expenses.

Outlook and guidance

• Strategy includes expanding ride-hailing and Robotaxi internationally, extending geographic coverage, refining the hybrid manned ride-hailing/Robotaxi model, and improving efficiency with data analytics.

• Focus areas include enhancing brand awareness, delivering a smooth Robotaxi experience, and recruiting and developing talent.