FAR International Holdings Group Company (2516) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 63.41% YoY to RMB2.05bn; reported profit increased 4.47% to RMB26.95m, while adjusted net profit excluding listing expenses rose 40.76% to RMB54.93m.

• Growth was led by cross-border delivery and other logistics services; margin pressure, higher listing costs and receivables impairment limited reported profit growth.

Financial highlights

• Revenue RMB2,045.9m vs RMB1,252.0m; gross profit RMB157.0m vs RMB104.7m; profit before tax RMB37.8m vs RMB35.9m.

• Net profit RMB27.0m vs RMB25.8m; basic and diluted EPS RMB4.32 cents vs RMB3.25 cents.

• Adjusted net profit, excluding listing expenses, RMB54.93m vs RMB39.03m; listing expenses were RMB27.98m vs RMB13.23m.

• Operating costs included RMB8.78m impairment loss on trade and other receivables, compared with a RMB0.62m reversal in FY2022; finance costs rose to RMB4.47m from RMB0.91m.

Outlook and guidance

• Cross-border e-commerce export volume in China is forecast to grow at a 16.40% CAGR from 2022–2025, reaching RMB10tn by 2025, supporting logistics demand.

• Priorities include deeper platform cooperation, expanded service capacity and overseas networks, and information-technology upgrades; no numerical FY2024 earnings guidance was given.

• Net IPO proceeds are expected to fund future cash needs; management anticipated sufficient working capital for operations, capex and other needs.