Dmall (2586) H2 2024 earnings summary

Executive summary

• Revenue rose 17.3% YoY to RMB1,859.0m; gross profit increased 34.6% to RMB746.4m, while adjusted continuing-operations profit was RMB29.8m.

• IFRS net loss widened to RMB2,220.3m, largely reflecting a RMB2,275.7m fair-value loss on convertible redeemable preferred shares.

• Strategic focus shifted to retail core service cloud and AI-driven digitalization following the April 2024 divestment of Dmall Fresh (Beijing) and cessation of the Dmall APP.

Financial highlights

• Revenue increased 17.3% YoY to RMB1,859.0m; cost of revenue rose 8.0% to RMB1,112.6m and gross profit grew 34.6% to RMB746.4m.

• Continuing-operations loss was RMB2,453.4m vs RMB749.0m in 2023; total net loss was RMB2,220.3m vs RMB655.4m.

• Adjusted continuing-operations profit was RMB29.8m, compared with an adjusted loss of RMB276.7m in 2023; adjustment includes preferred-share and investment fair-value changes, share-based pay and listing expenses.

• Operating loss improved to RMB174.0m from RMB262.8m; R&D and selling and marketing expenses declined, while G&A expenses increased.

Outlook and guidance

• Priorities are AI retail innovation, applying data and robotics across retail operations, and developing industry models to support precision operations, cost control and revenue growth.

• Strategy targets stronger leadership in China and further international expansion, working with retail partners including Pangdonglai, DFI Retail Group and SM Group.

• Remaining IPO proceeds of HK$606.0m are expected to be used within 36 months, principally for product development, talent acquisition, strategic opportunities, sales expansion and working capital.