JF SmartInvest Holdings (9636) H1 2023 earnings summary

Executive summary

• Gross billings rose 21.4% YoY to RMB1,260.4m, while revenue fell 5.4% to RMB860.7m; H1 net loss was RMB37.8m versus net profit of RMB220.2m.

• Excluding RMB57.3m of share-based compensation, non-HKFRS adjusted net profit was RMB19.5m.

• Higher-priced SmartInvest Pro and SmartInvest Info packages lifted average gross billing per paying user across both offerings.

Financial highlights

• Gross profit fell 12.0% to RMB714.8m; gross margin declined to 83.1% from 89.3%, as staff costs increased cost of sales.

• Operating loss was RMB56.5m versus operating profit of RMB230.7m; loss before tax was RMB57.5m versus profit before tax of RMB229.6m.

• Other income rose 14.9% to RMB103.0m, including higher VAT refunds and government grants.

• Operating cash flow was RMB213.1m versus RMB49.4m; cash and cash equivalents reached RMB814.1m at June 30, 2023.

Outlook and guidance

• Priorities included investment in content, traffic channels, differentiated products, R&D and technology, alongside customer acquisition through diversified media and MCN channels.

• Management expected refund rates to remain relatively low or decline further; a conditional acquisition would add fund-distribution services and broaden asset-allocation offerings.

• Jiuge, a digital robo-advisor with eight investor services, launched in August 2023.