Edianyun Limited (2416) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 7.4% YoY to RMB1,270.7m; IFRS net loss widened to RMB900.6m, largely reflecting an RMB888.0m fair-value loss on financial liabilities at FVTPL.

• Adjusted net profit was RMB15.2m versus RMB135.2m in FY2022; adjusted EBITDA declined 14.2% to RMB566.3m.

• Active customers grew 8.0% to 46,789, customer retention improved to 74%, and devices under service reached 1.20m.

Financial highlights

• Revenue was RMB1,270.7m, down 7.4% YoY; cost of sales declined 3.6% to RMB718.4m and gross profit fell 11.8% to RMB552.3m.

• IFRS loss before tax was RMB902.4m versus RMB646.3m; net loss was RMB900.6m versus RMB611.6m.

• Adjusted net profit fell 88.7% to RMB15.2m; adjusted EBITDA decreased 14.2% to RMB566.3m.

• Basic and diluted loss per share were RMB2.27, versus RMB5.19 in FY2022.

Outlook and guidance

• 2024 priorities include launching new products, expanding and training the sales team, and using AI-based business analysis to improve sales efficiency.

• Plans include further investment in remanufacturing automation and digitalization to improve equipment quality and reduce average unit costs.

• AI plans include developing SME-focused products based on Microsoft Azure OpenAI through strategic cooperation with Sinoage.

• Management expects office IT integrated solutions to benefit from rising market penetration as SMEs adopt flexible, asset-light models.