Readboy Education Holding Company (2385) H2 2024 earnings summary

Executive summary

• FY24 revenue rose 28.4% YoY to RMB461.4m, while a net loss of RMB59.9m remained; macroeconomic pressure and tighter education-sector regulation weighed on results.

• Registered users exceeded 10.33m, up 23.7% YoY, and daily active users reached 689,310; personal student tablets accounted for 84.4% of revenue.

Financial highlights

• Revenue was RMB461.4m versus RMB359.4m in FY23; gross profit rose 20.9% to RMB111.7m, while gross margin fell to 24.2% from 25.7%.

• Net loss narrowed to RMB59.9m from RMB72.5m; loss before tax widened to RMB62.5m from RMB61.3m.

• Adjusted net loss, excluding non-cash fair-value losses on financial assets, was RMB47.5m versus RMB53.4m in FY23.

• R&D expense increased 25.7% to RMB54.1m; selling and distribution expense fell 5.0% to RMB76.7m, while other expenses rose 82.6% to RMB19.9m.

• Basic and diluted loss per share was RMB0.1767 versus RMB0.2088 in FY23.

Outlook and guidance

• FY25 business revenue is expected to be similar to FY23 and FY24, with no significant change; the outlook describes net income as stable versus both years.

• Priorities include product and service optimisation, R&D and technology innovation, market expansion, and bringing AI large-model applications to market in 2025.

• Plans include assessing entry into Southeast Asia and other overseas markets, expanding government and institutional partnerships, and deepening data governance and compliance.