Hangzhou SF Intra-city Industrial (9699) H1 2024 earnings summary

Executive summary

• Continuing-operations revenue rose 19.6% YoY to RMB6,878.5 million; attributable net profit increased 105.1% to RMB62.2 million, a record interim result.

• Order volume grew more than 30% YoY; premium-customer mix, scale benefits, technology-led efficiency and cost discipline supported profitability.

Financial highlights

• Revenue increased 19.6% YoY to RMB6,878.5 million; cost of revenue rose 19.4% to RMB6,405.2 million.

• Gross profit increased to RMB473.3 million from RMB383.4 million; gross margin improved to 6.9% from 6.7%.

• Operating profit rose to RMB62.6 million from RMB28.6 million; profit before tax was RMB80.6 million versus RMB45.6 million.

• Attributable net profit was RMB62.2 million versus RMB30.3 million; continuing-operations profit was RMB62.2 million versus RMB44.6 million.

• Operating cash inflow was RMB99.2 million versus RMB34.3 million; investing outflow was RMB411.0 million, mainly for structured deposits, and financing outflow was RMB134.9 million, mainly for repurchases.

Outlook and guidance

• Priority remained high-quality, healthy growth through wider scenario and geographic coverage, stronger technology, extended fulfillment services and deeper business partnerships.

• Growth opportunities included diversified traffic, local retail, faster intra-city logistics and expanded third-party on-demand delivery services.

• Unused IPO proceeds are intended for service coverage expansion and potential acquisitions through end-2026.