Gogox Holdings (2246) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 12.8% YoY to RMB324.2m as mainland revenue declined 39.5% to RMB89.7m; Hong Kong and overseas revenue rose 4.9% to RMB234.5m.

• Net loss narrowed 87.1% to RMB82.9m, while adjusted net loss fell 72.1% to RMB33.8m.

• Hong Kong and overseas markets contributed 72.3% of revenue; strategic priorities included higher-margin services and overseas growth.

Financial highlights

• Gross profit fell 5.5% to RMB112.7m; gross margin rose to 34.8% from 32.1%.

• Operating loss narrowed to RMB84.5m from RMB645.2m; loss before tax was RMB84.0m and period loss was RMB82.9m.

• Cost of revenue fell 16.2% to RMB211.5m; selling and marketing expense declined 37.3% to RMB69.3m, G&A fell 34.6% to RMB77.4m, and R&D fell 48.4% to RMB11.6m.

• Adjusted EBITDA loss was RMB21.2m, down 80.1%; basic and diluted loss per share was RMB0.13 versus RMB1.03.

Outlook and guidance

• Priorities include enhancing platform services, expanding enterprise clients and value-added services, and applying AI and machine learning to operations and service quality.

• APAC expansion, premium offerings and value-added service innovation were identified as growth opportunities; no quantified financial guidance was given.