Deewin Tianxia (2418) H1 2023 earnings summary

Executive summary

• H1 revenue rose 6.2% YoY to RMB1,518.1m, while gross profit fell 12.5% and net profit declined to RMB109.9m from RMB117.7m.

• Logistics and supply chain services grew, but lower financial-service revenue and weaker logistics gross margin weighed on profitability.

Financial highlights

• Revenue was RMB1,518.1m, up 6.2% YoY; cost of revenue rose 10.9% to RMB1,262.9m.

• Gross profit declined to RMB255.2m from RMB291.5m; gross margin was 16.8% versus 20.4% in H1 2022.

• Operating profit was RMB148.6m versus RMB163.1m; profit before tax was RMB141.2m versus RMB150.3m, and net profit was RMB109.9m versus RMB117.7m.

• Net finance costs narrowed to RMB9.8m from RMB15.0m; financial-asset impairment losses declined to RMB26.0m from RMB56.0m.

Outlook and guidance

• H2 priorities include expanding external markets, improving integration across business sectors, advancing intelligent logistics and new-energy initiatives, and developing the cloud-control platform for autonomous driving.

• Plans include market-oriented warehousing and distribution, new-energy aftermarket services, financial-service collaboration, and new IoV data applications and scenarios.

• Operational focus includes tighter receivables and inventory management, matching financial liabilities to operating needs, and strengthening compliance and risk controls; no numerical guidance was stated.