JF SmartInvest Holdings (9636) H2 2023 earnings summary

Executive summary

• Gross billings rose 17.9% to RMB2,347.7 million; revenue grew 6.2% to RMB1,965.4 million, while reported net profit fell 58.6% to RMB190.7 million. Adjusted net profit was RMB319.6 million, excluding RMB128.9 million of share-based compensation.

• Operating cash inflow increased 86.6% to RMB444.0 million; 374 MCN-operated accounts had 38.9 million followers at year-end.

Financial highlights

• Revenue was RMB1,965.4 million, up 6.2% YoY; gross profit rose 1.8% to RMB1,643.3 million.

• Operating profit declined 56.9% to RMB208.4 million; profit for the year fell 58.6% to RMB190.7 million.

• Adjusted profit for the year was RMB319.6 million, down 30.6% YoY, excluding RMB128.9 million of share-based compensation.

• Operating cash flow was RMB444.0 million, up 86.6%; cash and liquid financial resources increased to RMB2,068.4 million from RMB1,066.7 million.

Outlook and guidance

• 2024 priorities include deepening online and offline traffic operations, converting MCN audiences into App users, and improving customer retention and brand reach.

• Planned product development includes integrating the Apps, expanding AI robo-advisor Jiuge, and adding smaller-ticket and quantitative investment products.

• R&D and AI plans include upgrading Jiuge, expanding AI applications in customer management and compliance, and improving efficiency; no numerical earnings guidance was stated.