East Buy (1797) H2 2024 earnings summary

Executive summary

• Revenue grew 56.8% year-over-year to RMB7.1 billion, driven by private label products and livestreaming e-commerce.

• Adjusted net profit doubled to RMB2.2 billion, with a significant one-time gain from the disposal of the education business.

• The education business was fully divested, making the group a pure-play e-commerce operator.

• Gross merchandise volume (GMV) rose 43% to RMB14.3 billion, with private label products contributing 40% of total GMV.

Financial highlights

• Revenue from continuing operations (private label and livestreaming) increased 68.1% to RMB6.5 billion.

• Net profit from continuing operations fell to RMB249.1 million from RMB799.2 million year-over-year, due to margin compression and higher expenses.

• Adjusted EBITDA from continuing operations was RMB773.8 million, down from RMB1.08 billion.

• Gross profit margin from continuing operations declined to 25.9% from 38.2%, impacted by product mix and promotions.

• Basic EPS was RMB1.68, up from RMB0.97, reflecting the gain from discontinued operations.

Outlook and guidance

• Focus will remain on expanding private label products, enhancing supply chain, and leveraging multi-channel strategies.

• Plans to launch offline promotions and strategic cooperation with New Oriental in FY2025.

• Continued investment in product quality, customer experience, and technology to drive growth.