Lesi Group (2540) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was RMB300.519m, down 5.9% YoY; net profit was RMB28.560m, down 3.7%, and gross profit fell 19.2% to RMB42.998m.

• Softer mobile advertising demand weighed on results amid uncertain market conditions and cautious advertiser spending.

• Served 114 customers across industries; business priorities include short-video production, platform upgrades, generative AI and cross-border opportunities.

Financial highlights

• Revenue was RMB300.519m versus RMB319.329m; gross profit was RMB42.998m versus RMB53.195m, while operating profit was RMB31.102m versus RMB31.619m.

• Profit before tax was RMB29.710m versus RMB30.737m; attributable profit was RMB28.274m versus RMB29.433m.

• Other income rose to RMB3.741m from RMB0.589m, mainly on higher interest income and listing-related government subsidies; listing expenses were RMB2.008m versus RMB4.826m.

• Total comprehensive income rose to RMB31.397m from RMB29.519m, including positive currency translation of RMB2.837m versus a RMB0.209m loss.

Outlook and guidance

• Plans include expanding short-video production and value-added services, applying generative AI, and upgrading the self-developed platform’s data collection and algorithm capabilities.

• Exploring cross-border e-commerce cooperation and potential M&A or collaboration to strengthen services and customer reach in selected overseas and PRC markets.

• IPO proceeds are expected to be fully used by 30 June 2025 for expansion, short-video capacity, platform upgrades and collaboration/M&A; working capital proceeds are planned for use by 31 December 2024.