Huashi Group Holdings (1111) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 22.9% YoY to RMB288.5m; profit for the year increased 24.0% to RMB80.6m.

• Revenue growth reflected expansion across branding, event execution, online advertising and advertisement placement services.

• Customer contracts totaled RMB940.5m; 99.4% of services, approximately RMB934.4m, had been provided to customers.

Financial highlights

• Revenue was RMB288.5m, up 22.9% YoY; gross profit rose 6.4% to RMB159.5m.

• Profit before tax increased 27.2% to RMB100.2m; reported profit for the year rose 24.0% to RMB80.6m.

• Basic and diluted EPS was RMB10.46 cents, compared with RMB9.79 cents in FY2023.

• Adjusted net profit, excluding listing expenses, was RMB80.6m versus RMB80.7m in FY2023; FY2024 had no listing expense add-back.

Outlook and guidance

• Focus remains on branding and online media advertising, while monitoring offline advertising opportunities and investing when appropriate.

• Plans include upgrading the smart advertising platform and collaborating with big-data and AI enterprises to develop digital advertising services.

• Emerging opportunities under study include AI, the low-altitude economy, local cultural tourism and new display technologies.

• New and expanded projects include a three-year brand promotion contract, cultural tourism work and strategic partnerships across catering, agriculture, cloud computing and communications infrastructure.