Qunabox Group (917) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 33.1% YoY to RMB1,339.5m and gross profit rose 40.1% to RMB749.8m, supported by marketing services growth and improved gross margin.

• Reported net loss was RMB1,662.7m, driven mainly by a non-cash, one-time fair value loss on preferred shares; adjusted profit was RMB251.2m.

• Growth priorities include AI interaction and data products, international expansion, diversification and potential strategic M&A.

Financial highlights

• Revenue increased 33.1% YoY to RMB1,339.5m; cost of sales rose 25.1% to RMB589.7m, below revenue growth.

• Gross profit grew 40.1% to RMB749.8m; gross margin expanded to 56.0% from 53.2%.

• Adjusted profit increased 25.1% YoY to RMB251.2m; adjusted EBITDA rose 21.2% to RMB339.7m.

• Reported loss for the year was RMB1,662.7m versus profit of RMB136.7m in 2023; basic and diluted loss per share were RMB8.40.

• R&D expenses increased 43.8% to RMB91.5m; selling and distribution expenses rose 32.1% to RMB316.1m, including marketing and promotion costs up 54.7%.

Outlook and guidance

• For 2025, policy support for consumption and AI-enabled productivity are expected to support consumption-sector and marketing-industry opportunities.

• Plans include continued AI interaction investment, one-stop marketing solutions, and exploration of the Middle East and Singapore markets.

• Strategic M&A based on the ecosystem is planned to integrate resources and expand synergies; operating priorities include improving network efficiency and AI/data support.