JF SmartInvest Holdings (9636) H1 2024 earnings summary

Executive summary

• H1 revenue rose 4.4% YoY to RMB898.1m, while gross billings fell 26.17% to RMB930.5m and net loss widened to RMB174.2m from RMB37.8m.

• Weak, volatile markets, subdued investor sentiment and higher refunds pressured order generation; SmartInvest Info led revenue growth.

• Priorities included product integration, AI-enabled advisory and digital services, plus expansion into learning hardware and B2B cooperation.

Financial highlights

• Revenue was RMB898.1m, up 4.4% YoY; gross profit was RMB717.9m, up 0.4%, while gross margin fell to ~80% from ~83% as cost of sales rose 23.6% to RMB180.3m.

• Operating loss widened to RMB215.5m from RMB56.5m; net loss was RMB174.2m versus RMB37.8m, and loss per share was RMB0.40 versus RMB0.09.

• Adjusted loss excluding share-based compensation was RMB153.3m versus adjusted profit of RMB19.5m; share-based compensation expense was RMB20.9m versus RMB57.3m.

• Other net loss was RMB28.1m versus income of RMB103.0m, including RMB94.6m of losses on financial assets at fair value through profit or loss.

Outlook and guidance

• H2 priorities included integrating Pro and Info, expanding small-value products, refining the stock-learning machine and improving the product and service system.

• Plans included continued R&D investment and AI deployment across content creation, customer service, marketing and intelligent investment advisory to improve user experience and efficiency.

• Develop MCN operations, live streaming and short-video channels, explore e-commerce conversion, and serve investors with varied needs; policy reforms were viewed as potential opportunities for long-term investing.