JST Group Corporation (6687) H2 2025 earnings summary

Executive summary

• Revenue rose 25.6% YoY to RMB1,142.5m; gross profit increased 35.0% to RMB841.0m, while reported net loss was RMB1,649.8m, driven primarily by preferred-share conversion accounting upon listing.

• Adjusted net profit, a non-IFRS measure excluding specified items, reached RMB230.9m, up 282.2% YoY; operating cash flow was RMB404.8m, up 45.0%.

Financial highlights

• SaaS revenue was RMB1,104.8m, 96.8% of total revenue; total SaaS customers grew 27.8% to 113.0k and orders processed rose 17.6% to 38.8bn.

• Cost of sales increased 5.1% to RMB301.5m, below revenue growth; gross profit reached RMB841.0m, up 35.0% YoY.

• Selling and marketing expenses rose 7.0% to RMB395.9m; G&A increased 65.5% to RMB149.8m, mainly due to listing costs and employee share-based payments.

• R&D expenses were RMB243.1m, up 1.4%; other income increased to RMB38.2m, mainly from higher government grants.

Outlook and guidance

• Plans include expanding the cloud-based SaaS portfolio, deepening existing customer relationships, growing the customer base and continuing product innovation and optimisation.

• AI applications for e-commerce operations have been adopted by customers; a self-developed AI agent is intended to enable natural-language ERP operation and reduce implementation and support costs.

• Plans to establish subsidiaries in Malaysia, Vietnam, Indonesia and the Philippines; opportunities in Latin America, the Middle East, Africa, Europe and North America are also under exploration.

• Continues to explore acquisitions, particularly targets with overlapping merchant bases and complementary products.