Edianyun Limited (2416) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 3.0% YoY to RMB636.0m; IFRS loss widened to RMB881.7m, while adjusted net profit was RMB28.3m.

• Active customers increased 11.8% YoY to 45,040; devices under service reached 1.15m as demand recovered after an early-year COVID-related decline.

Financial highlights

• Revenue declined 3.0% to RMB636.0m; cost of sales rose 9.7% to RMB353.2m and gross profit decreased 15.2% to RMB282.8m.

• IFRS loss before tax widened 43.8% to RMB876.4m; period loss increased 41.2% to RMB881.7m.

• Adjusted net profit fell 61.6% to RMB28.3m; adjusted EBITDA declined 17.1% to RMB303.5m.

• Fair-value loss on FVTPL financial liabilities was RMB888.0m, mainly reflecting increased valuation; listing expenses were RMB13.2m.

• Basic and diluted loss per share were both RMB4.07, versus RMB5.30 loss in H1 2022.

Outlook and guidance

• Management expects the rebound in devices under service to support H2 2023 results, with revenue impact lagging the recovery in service volumes.

• Priorities include expanding customers and market penetration, broadening services and SaaS, and investing in remanufacturing technology to reduce unit costs.

• An internally developed keyboard inspection robot was expected to enter operation soon, targeting higher inspection efficiency and yield.