Powerwin Tech (2405) H1 2023 earnings summary

Executive summary

• H1 revenue rose 40.7% YoY to US$8.764m; profit for the period increased 36.3% to US$2.024m.

• Gross billing to marketers reached US$288.4m, versus US$222.6m in H1 2022; more than 2,500 marketers were served by June 30, 2023.

• Growth reflected higher standardized and customized digital marketing revenue and rapid expansion in cross-border online-shop SaaS.

Financial highlights

• Gross profit was US$7.588m vs US$4.821m; operating profit US$4.358m vs US$2.498m.

• Profit before tax was US$2.371m vs US$1.727m; basic and diluted EPS were 0.29 cents vs 0.25 cents.

• Administrative expenses rose to US$2.915m from US$1.832m, including US$1.057m in H1 listing expenses.

• Finance costs increased to US$2.016m from US$0.799m, mainly due to higher bank-loan interest amid increased market rates.

Outlook and guidance

• Both digital marketing and online-shop SaaS businesses continued to grow after June 30, 2023; no known material adverse change in China’s overall economic or market conditions.

• Priorities include upgrading Adorado and Powershopy, expanding marketer coverage and sales channels, building overseas networks and localization capability, and selectively pursuing strategic cooperation and investment.