Maiyue Technology (2501) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 6.5% YoY to RMB259.1m, while gross profit fell 18.4% to RMB85.4m and profit fell 54.0% to RMB22.6m.

• Fewer integrated IT solution projects, lower margins on certain projects and post-listing expenses weighed on earnings; hardware/software and standalone IT services supported revenue growth.

Financial highlights

• Revenue was RMB259.085m vs RMB243.255m; cost of sales rose to RMB173.645m from RMB138.624m.

• Gross profit was RMB85.440m vs RMB104.631m; operating profit was RMB37.582m vs RMB65.192m.

• Profit before tax was RMB27.386m vs RMB56.197m; net profit was RMB22.647m vs RMB49.056m.

• Basic and diluted EPS was RMB0.06 vs RMB0.13; no final dividend was recommended for FY2023.

Outlook and guidance

• Priorities include completing the Shenzhen R&D centre, developing cloud computing and AI products, strengthening self-developed products through academic collaboration, and expanding into new PRC markets and customer relationships.