Fenbi (2469) H1 2024 earnings summary

Executive summary

• H1 revenue fell 3.1% YoY to RMB1,630.5m, while gross profit rose 3.2% to RMB883.2m and gross margin expanded to 54.2%.

• Net profit rose to RMB277.7m from RMB81.5m; adjusted net profit was RMB349.1m versus RMB288.0m.

Financial highlights

• Revenue was RMB1,630.5m, down 3.1% YoY; cost of revenue fell 9.6% to RMB747.3m.

• Operating profit rose to RMB270.3m from RMB70.3m; profit before tax was RMB287.3m versus RMB75.7m.

• Administrative expenses fell 38.3% to RMB197.5m and R&D expenses fell 24.4% to RMB108.2m; selling and marketing expenses rose 5.3% to RMB320.3m.

• Basic and diluted EPS were RMB0.13 versus RMB0.04 in H1 2023.

Outlook and guidance

• Revenue is expected to maintain steady growth, with further potential to improve margins and operating efficiency while preserving teaching quality.

• Increased interest in government-sponsored positions is expected to support exam participation and long-term course demand; high-quality education and learning efficiency remain differentiators.

• The OMO model combines offline courses with online reminders, Q&A and targeted exercises to personalize preparation and improve learning outcomes.