FAR International Holdings Group Company (2516) H1 2024 earnings summary

Executive summary

• H1 revenue rose 111.89% YoY to RMB1,427.98m; profit attributable to owners increased 235.86% to RMB38.09m, while profit for the period reached RMB38.06m, up 248.65%.

• Strong growth in freight forwarding and other logistics services supported revenue and profit exceeding expectations.

Financial highlights

• Revenue was RMB1,427.98m versus RMB673.91m; cost of sales was RMB1,323.18m versus RMB619.46m.

• Gross profit rose 92.45% to RMB104.80m from RMB54.46m, while gross margin declined to 7.34% from 8.08% as lower-margin services gained mix.

• Profit before tax increased to RMB40.04m from RMB14.05m; profit for the period was RMB38.06m versus RMB10.92m.

• Adjusted net profit, excluding listing expenses, rose 77.39% to RMB38.06m from RMB21.46m.

• Net other losses were RMB9.23m versus net gains of RMB2.84m, and finance costs rose to RMB7.74m from RMB1.29m; receivables impairment increased to RMB7.42m from RMB1.25m.

Outlook and guidance

• China cross-border e-commerce export trade is forecast to grow at a 16.40% CAGR from 2022–2025, reaching RMB10.00tn by 2025.

• Priorities include deeper platform partnerships, non-platform customer acquisition, expanded service capacity and overseas logistics networks, and investment in technology systems.

• Sufficient working capital is expected for future working capital needs, capital expenditure and other cash requirements.