Deewin Tianxia (2418) H2 2023 earnings summary

Executive summary

• 2023 revenue rose 14.3% YoY to RMB3,119.4m; profit attributable to shareholders fell 34.1% to RMB149.3m, and basic EPS was RMB0.07.

• Logistics and supply chain growth and higher IoV/data revenue were offset by lower financial-service revenue, a reduced gross margin, higher impairment charges and lower government grants.

Financial highlights

• Revenue was RMB3,119.4m, up 14.3% YoY; gross profit was RMB515.4m, up 4.3%.

• Profit before tax fell 25.0% to RMB209.1m; profit for the year declined 31.2% to RMB151.3m.

• Operating profit was RMB217.9m versus RMB274.3m; net finance costs increased to RMB13.9m from RMB0.2m.

• Net impairment losses rose 47.8% to RMB116.5m, reflecting slower customer repayments and prudent factoring provisions; other income fell 60.5% to RMB27.1m.

• Operating cash flow recovered to RMB267.4m from an outflow of RMB142.7m; cash and cash equivalents ended at RMB976.9m versus RMB1,149.0m.

Outlook and guidance

• 2024 priorities include expanding independent third-party customers, growing new-energy business, improving cross-sector integration and developing new service models.

• Plans include intelligent warehousing, battery-bank and logistics-capacity platforms, stronger credit risk modelling, and investment in IoV/data lakes and data warehouses.

• New-energy integrated logistics projects will target Shanxi, Inner Mongolia, Shaanxi, Sichuan and Xinjiang, serving demand from coal mines, coking plants and steel mills.

• Risk-control priorities include tighter customer credit processes, supplier access controls, major-project reviews and stronger external-business risk management.