JF SmartInvest Holdings (9636) H2 2024 earnings summary

Executive summary

• FY24 gross billings rose 49.3% YoY to RMB3,505.9m; revenue increased 17.3% to RMB2,306.0m and profit for the year rose 42.8% to RMB272.4m.

• Operating cash flow net inflow reached RMB1,627.8m, up 266.6% YoY; year-end contract liabilities of RMB1,488.9m are expected to be recognized primarily as 2025 revenue.

• Growth was supported by higher paying users, expanded products and AI-enabled services, alongside a fourth-quarter capital-market recovery.

Financial highlights

• Revenue was RMB2,306.0m, up 17.3% YoY; gross profit rose 15.3% to RMB1,894.1m.

• Profit from operations increased 47.5% to RMB307.4m; profit for the year rose 42.8% to RMB272.4m.

• Non-HKFRS adjusted profit, excluding share-based compensation expense, grew 9.7% to RMB350.5m; share-based compensation expense was RMB78.1m versus RMB128.9m in 2023.

• Other income rose 13.8% to RMB262.9m; it included a RMB258.4m VAT refund and a RMB64.1m net loss on FVPL financial assets.

• Contract liabilities rose to RMB1,488.9m from RMB689.3m, reflecting advance subscription fees to be recognized over service periods.

Outlook and guidance

• For 2025, plans include expanding the product mix across software, small-amount products, Stock Learning Machine and SmartInvest App to support revenue diversification.

• Plans include continued AI and advanced-technology R&D investment, intelligent product upgrades, and AI applications across products, processes and operations.

• The strategy includes exploring cooperation with securities brokers and licensed institutions to create an integrated service offering.