Qunabox Group (917) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 41.7% YoY to RMB515.1m; gross profit increased 45.0% to RMB281.4m and adjusted profit rose 48.8% to RMB80.3m.

• Reported loss was RMB1,846.2m, primarily due to a non-cash, one-time RMB1,899.4m fair value loss on preferred shares converted upon listing.

• Cash and cash equivalents and restricted cash totaled RMB887.6m at June 30, 2024.

Financial highlights

• Revenue increased from RMB363.6m to RMB515.1m YoY; cost of sales rose 37.9% to RMB233.7m.

• Gross profit was RMB281.4m, up 45.0%; gross margin increased to 54.6% from 53.4%.

• Adjusted EBITDA rose 35.9% to RMB121.4m; adjusted profit increased 48.8% to RMB80.3m.

• IFRS loss was RMB1,846.2m versus H1 2023 profit of RMB65.4m; basic and diluted loss per share were RMB13.71.

Outlook and guidance

• H2 plans include exploring the Middle East and expanding multi-channel marketing solutions for domestic and overseas brands.

• Priorities include AI and algorithm development, content innovation, improved terminal-network effectiveness and greater operating efficiency.

• Management expects China's consumption market to revitalize further as macroeconomic, monetary and fiscal policies support recovery.