Huashi Group Holdings (1111) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 13.3% YoY to RMB234.7m; profit for the year increased 42.2% to RMB65.0m and adjusted net profit rose 60.1% to RMB80.7m.

• Growth reflected higher branding, event execution, advertisement placement and Media Partner rebate revenue; the service mix shift toward net-basis placement revenue lifted gross margin.

Financial highlights

• Gross profit increased 45.1% YoY to RMB149.9m; profit before tax rose 41.7% to RMB78.8m.

• Operating expenses included RMB15.7m of listing expenses in FY2023, versus RMB4.7m in FY2022; adjusted net profit excludes these expenses.

• Cash and cash equivalents were RMB171.0m at 31 December 2023, versus RMB2.9m a year earlier.

Outlook and guidance

• Priorities include building brand data platforms and R&D databases, deepening cooperation with leading network platforms, and developing in-house content production capabilities.

• Plans also include geographic expansion, stronger brand recognition and marketing, and selective pursuit of strategic cooperation and investment opportunities.