Fenbi (2469) H2 2024 earnings summary

Executive summary

• Revenue fell 7.7% YoY to RMB2,789.8m amid intensified competition; profit rose to RMB239.6m from RMB188.6m, lifting net margin to 8.6% from 6.2%.

• Adjusted net profit, excluding share-based payments and fair-value losses on financial liabilities, was RMB362.5m versus RMB445.1m; monthly active users remained 9.1m.

Financial highlights

• Gross profit declined 6.7% to RMB1,464.0m; gross margin increased to 52.5% from 52.0%.

• Operating profit increased to RMB227.2m from RMB181.0m; profit before tax rose to RMB262.0m from RMB205.0m.

• Administrative, selling and marketing, and R&D expenses declined 12.7%, 6.4% and 12.0%, respectively; income tax expense increased 37.1% to RMB22.5m.

Outlook and guidance

• Priorities include investing in product technology, AI and computing power while maintaining teaching quality and service; management aims for orderly, stable, sustainable growth.

• AI written-test product launched in May 2024 and AI one-on-one interview review launched at year-end; management cited positive feedback and plans continued product and technology investment.