Huashi Group Holdings (1111) H1 2024 earnings summary

Executive summary

• H1 revenue rose 8.5% YoY to RMB123.245m and profit increased 4.4% to RMB35.900m; adjusted net profit declined 1.9% to RMB35.900m from RMB36.563m.

• New-customer growth in advertisement placement drove revenue gains; signed contract value was RMB434m, with 94.9% of services provided.

Financial highlights

• Gross profit rose to RMB74.985m from RMB69.078m; cost of services increased to RMB48.260m from RMB44.559m, reflecting higher advertising activity.

• Profit before tax increased to RMB44.098m from RMB40.647m; net profit margin eased to 29.1% from 30.3%.

• Other income and losses, net, fell to RMB1.196m from RMB2.849m, primarily because the VAT additional deduction benefit expired.

• Basic and diluted EPS was RMB4.66 cents vs RMB5.33 cents; weighted-average shares increased to 770.65m from 645.65m.

Outlook and guidance

• Priorities include building brand data and R&D databases, improving online-advertising analytics and monitoring, and developing digital capabilities and data security.

• Plans include expansion beyond Hubei and overseas opportunities; more than 50% of H1 revenue came from Hubei.

• Focus remains on branding and online media advertising, with offline media opportunities to be considered as investment conditions allow; talent and brand development remain priorities.