Lesi Group (2540) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 8.5% YoY to RMB681.5m; profit attributable to equity shareholders increased 11.1% to RMB72.5m.

• Revenue growth reflected higher demand for mobile advertising solutions, while lower media-partner rebates weighed on gross profit and margin.

Financial highlights

• Revenue increased 8.5% to RMB681.5m; gross profit decreased 2.5% to RMB101.4m.

• Operating profit rose to RMB78.3m from RMB70.7m; profit before tax increased 10.4% to RMB75.5m.

• Profit for the year reached RMB73.2m versus RMB65.9m; profit attributable to equity shareholders was RMB72.5m versus RMB65.2m.

• Other net income rose to RMB4.6m from RMB1.6m, mainly on higher interest income and government subsidies.

Outlook and guidance

• Focus areas include expanding value-added marketing services, short-video production capacity and content creation, with practical applications of generative AI under exploration.

• Plans include upgrading the self-developed platform with automated data collection and algorithm capabilities, and exploring cross-border e-commerce collaborations and M&A opportunities.

• IPO proceeds are to continue funding the disclosed business, production, platform and collaboration plans; stated utilization timelines extend to 30 June 2025.