Plus Group Holdings (2486) H1 2024 earnings summary

Executive summary

• H1 2023 revenue rose 55.8% YoY to RMB422.1m; profit attributable to owners fell 28.3% to RMB24.5m amid sharply lower gross margin and deliberate pricing to win customers.

• POS coverage reached 4.478m stores, up 10.7% YoY; 486,000 business touchpoints and 30,000 average monthly active touchpoints rose 14.4% and 30.4%, respectively.

Financial highlights

• Gross profit declined 13.4% to RMB78.0m; gross margin contracted to 18.5% from 33.2% YoY.

• Operating profit was RMB33.7m versus RMB51.8m; profit for the period was RMB24.5m versus RMB34.2m.

• Adjusted net profit, excluding RMB10.7m of listing expenses, was RMB35.0m, down 21.7% from RMB45.0m YoY.

• Basic and diluted EPS were RMB0.24, down from RMB0.35 YoY; net finance costs fell to RMB0.03m from RMB1.73m.

Outlook and guidance

• H2 priorities include growing share among top brands and distributors, deepening services for remaining brands and SMEs, and extending the service chain.

• Planned focus on core technology and R&D, platform upgrades, and improving digital marketing efficiency while maintaining a profitable service model.

• Strategic investment, acquisitions and major cooperation will be explored to integrate the industry chain and support business development.