Hangzhou SF Intra-city Industrial (9699) H2 2023 earnings summary

Executive summary

• FY23 revenue from continuing operations rose 21.1% to RMB12,387.4m; annual profit returned to RMB50.6m from a RMB286.9m loss in FY22.

• Growth and improved profitability reflected higher order density, scale benefits, customer mix optimization, technology investment and leaner operations.

Financial highlights

• Continuing-operations gross profit increased to RMB794.7m from RMB410.7m; gross margin improved to 6.4% from 4.0%.

• Continuing-operations net profit was RMB64.9m, with a 0.5% margin; total net profit attributable to owners was RMB50.6m, with a 0.4% margin.

• Adjusted net profit, adding back RMB6.8m share-based compensation, was RMB57.4m; FY22 adjusted net loss was RMB286.9m.

• Operating cash flow turned positive at RMB266.3m versus a RMB414.7m outflow in FY22; cash and cash equivalents increased RMB440.9m to RMB1,898.7m.

Outlook and guidance

• Priorities include expanding across local retail, diversified traffic and intra-city logistics, while investing efficiency gains in business growth and lean operations.

• Management cited uncertain consumer-market recovery, while expecting continued opportunities from local retail development and broader third-party on-demand delivery.