Gogox Holdings (2246) H1 2023 earnings summary

Executive summary

• H1 revenue rose 6.6% YoY to RMB371.8m; gross profit increased 6.3% to RMB119.3m, while reported net loss narrowed to RMB642.9m from RMB1,049.1m.

• Operating loss narrowed 13.3% to RMB645.2m; adjusted net loss widened 2.6% to RMB121.3m and adjusted EBITDA loss widened 1.1% to RMB106.3m.

• Revenue growth reflected stronger enterprise and value-added services, offset by lower mainland revenue; results included a RMB513.5m goodwill impairment.

Financial highlights

• Revenue was RMB371.8m, up 6.6% YoY; gross profit was RMB119.3m, up 6.3%.

• Operating loss narrowed 13.3% to RMB645.2m; loss before tax was RMB645.0m versus RMB1,051.1m, and net loss was RMB642.9m versus RMB1,049.1m.

• Adjusted net loss was RMB121.3m versus RMB118.2m; adjusted EBITDA loss was RMB106.3m versus RMB105.2m.

• Operating expenses reflected lower share-based compensation and no listing expenses; adjusted G&A excluding share compensation and listing costs rose 19.9% to RMB104.5m.

Outlook and guidance

• H2 priorities: customer-centric service, technology improvements and strategic expansion, targeting sustainable, high-quality growth and stronger competitiveness.

• Strategy shifted from high-subsidy revenue growth toward steady development and reducing net losses.